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Newco Fact Sheet - Saint Joseph Hospital

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EMPLOYEE Q&A<br />

1. Why did we merge?<br />

The people of Kentucky need and deserve increased access to high quality health<br />

care. Right now, Kentucky is notable as one of the states with the poorest health in<br />

the nation. The problem is enormous and the challenges are complex.<br />

We believe KentuckyOne Health will be more capable in terms of staff expertise,<br />

equipment and systems; better positioned in our communities; and stronger<br />

financially, enabling us to significantly enhance the health of our patients and<br />

Kentucky communities.<br />

Our goal is to improve the health of every Kentuckian.<br />

2. Who do I work for now?<br />

Your current organization is still your employer, which is now a part of KentuckyOne<br />

Health, the largest health care provider in Kentucky.<br />

3. How does this affect me?<br />

You should expect changes and perhaps new opportunities — although not overnight.<br />

The legal merger is just the beginning of integrating our organizations.<br />

The goal is to share our strengths and adopt the best practices of each partner to<br />

most effectively provide health care to our patients and communities. This will take a<br />

great deal of planning — and time. Some changes may occur fairly quickly, others<br />

may take three or more years. For specifics, please talk with your manager.<br />

4. What is our relationship with University of Louisville <strong>Hospital</strong>?<br />

We spent 18 months working on a merger that would have included University<br />

<strong>Hospital</strong>. The governor did not approve University <strong>Hospital</strong> being part of the merger.<br />

We regret not being able to move forward together.<br />

5. Who is the CEO of KentuckyOne Health?<br />

Ruth W. Brinkley, FACHE, 59, a nationally recognized health care leader, is the first<br />

president and chief executive officer of KentuckyOne Health. She is a former<br />

executive at Ascension Health and Catholic Health Initiatives and brings experience<br />

as an executive and a nurse in a national system as well as academic medical<br />

centers and community hospitals.<br />

The KentuckyOne Health board, which has representatives from both partners,<br />

formed a search committee that interviewed candidates for the position of our first<br />

CEO.<br />

6. Where will KentuckyOne Health be headquartered?<br />

KentuckyOne Health has engaged a site selection firm to assist the CEO with an<br />

objective evaluation for the KentuckyOne Health executive offices. We look forward<br />

to working with Chambers of Commerce, economic development organizations and<br />

government leaders to identify potential locations.<br />

February 7, 2012 1


EMPLOYEE Q&A<br />

7. Will there be layoffs?<br />

It is too early to tell what impact our merger will have on staffing, but we do not<br />

expect the staffing levels to change right away. We will work to match staffing to the<br />

number of patients we are seeing and will efficiently provide support services for<br />

patient care and other functions.<br />

We expect new opportunities and roles to emerge and it is important to our success<br />

that we have the right talent in our new organization. We will communicate with<br />

employees frequently, to share news of changes and how those changes may<br />

impact staffing.<br />

8. Will my pay stay the same?<br />

There will be no immediate effect on the base pay for each job description and pay<br />

category. Human resources leaders will evaluate the existing multiple pay structures<br />

and develop a single compensation philosophy and pay structures that reflect each<br />

business unit and local labor market conditions.<br />

9. Will my medical benefits change?<br />

The benefits you learned about and signed up for during open enrollment in fall 2011<br />

will remain the same in 2012.<br />

Bringing together so many employees with a wide variety of benefits and plans from<br />

two organizations is complicated. Our leaders are committed to providing competitive<br />

and just compensation, benefits and other HR programs for all employees.<br />

Please contact your HR office with any questions you have about benefits.<br />

10. How will my retirement benefits be affected by the merger?<br />

Your retirement benefits will remain the same for 2012.<br />

A special note for SJHS employees enrolled in the CHI 457(b) Plan: There will be no<br />

changes to the plan design, eligibility or administration for this plan. However,<br />

because of the merger, we need to create a new SJHS 457(b) plan. Because of this,<br />

we will not be able to take salary deferrals from the time of close, like 457(b)<br />

deferrals, until the new plan is up and running. SJHS employees with an account<br />

balance in the 457(b) plan will receive special communications.<br />

11. Will I have to reapply for my job?<br />

The vast majority of employees will see no immediate changes to their jobs as we<br />

begin KentuckyOne Health. Once we look at integrating services, we will develop<br />

policies and procedures to fill roles.<br />

12. Do I get to keep my years of service if my job changes?<br />

Yes. Your years of service with your current employer before the KentuckyOne<br />

Health effective date will count toward your eligibility and accrual level of certain<br />

benefits (for example, paid time off accrual and benefits/retirement programs<br />

eligibility) going forward. If your position is eliminated and you are offered a new<br />

position within KentuckyOne Health, your years of service with the organization will<br />

roll over to your new position.<br />

February 7, 2012 2


EMPLOYEE Q&A<br />

13. When and where will jobs be posted, for leadership and other positions?<br />

As is standard hiring practice, open positions in the new system will be posted both<br />

internally and externally. A link to the partner website is provided on our intranet.<br />

14. What is the transfer policy if I want to apply for a job with one of our partner<br />

facilities?<br />

For calendar year 2012, if you apply for and are hired for a position with a different<br />

KentuckyOne Health entity, you will become an employee of the “new” location. This<br />

is called a voluntary transfer. You will receive the pay and benefits of that new<br />

location and you will be required to follow that organization’s policies, pay practices<br />

and benefits. You will receive credit for your prior service with your current location<br />

for all eligible benefit programs of the new location.<br />

15. How does the merger affect our patients?<br />

KentuckyOne Health is investing in resources and technology to bring care closer to<br />

home. Patients of KentuckyOne Health will have greater access to a range of<br />

specialists, technology and advanced medicine. Patients will notice the new<br />

KentuckyOne Health logo, but the name of the individual facility will be the same.<br />

Providers will alert patients if there are any changes that affect their care.<br />

16. Will I still be able to see my doctor?<br />

Yes. The merger does not affect your relationship with your doctor.<br />

17. Will our insurance continue to be honored?<br />

Yes. Insurance coverage will be honored as it is now.<br />

18. Will JHSMH abide by the restrictions on reproductive services and<br />

prescriptions?<br />

Elective abortions, sterilizations and euthanasia will not be performed at any facility<br />

within KentuckyOne Health.<br />

19. Will our medical insurance cover birth control and tubal ligations?<br />

The benefits you signed up for during open enrollment in fall 2011 will be the benefits<br />

you receive in 2012. Decisions about 2013 have not been made.<br />

20. Is KentuckyOne Health still nonprofit?<br />

KentuckyOne Health is a nonprofit organization created by the merger of two of<br />

Kentucky’s leading nonprofit health care providers.<br />

21. What about our cultural identities and values?<br />

KentuckyOne Health is a nonprofit charitable organization that honors its rich Jewish<br />

and Catholic heritages for the benefit of the people of Kentucky. Historically Jewish<br />

facilities will remain Jewish and historically Catholic facilities will remain Catholic.<br />

We already share core values, including respect for the dignity of every individual.<br />

We are committed to advocacy and care for the poor and marginalized and united in<br />

our determination to improve the health of Kentuckians.<br />

February 7, 2012 3


EMPLOYEE Q&A<br />

22. Who will own the network? Who is part of the merger?<br />

As a nonprofit organization, KentuckyOne Health has sponsors — not owners. The<br />

two sponsors are:<br />

• Jewish <strong>Hospital</strong> HealthCare Services (cosponsor of Jewish <strong>Hospital</strong> & St.<br />

Mary’s HealthCare)<br />

• Catholic Health Initiatives (sponsor of <strong>Saint</strong> <strong>Joseph</strong> Health System and<br />

cosponsor of Jewish <strong>Hospital</strong> & St. Mary’s HealthCare).<br />

The two-way merger includes Jewish <strong>Hospital</strong> & St. Mary’s HealthCare and <strong>Saint</strong><br />

<strong>Joseph</strong> Health System.<br />

23. What is the scope and size of KentuckyOne Health?<br />

KentuckyOne Health is an integrated comprehensive health system, a single<br />

organization with many facilities, services and providers. KentuckyOne Health<br />

includes hospitals, clinics, specialty institutions, home health agencies, satellite<br />

primary care centers and physician groups — with more than 80 locations combined<br />

and a medical staff of nearly 2,500 physicians across the Commonwealth.<br />

24. Which entities, formerly affiliated with the two partners, are not part of<br />

KentuckyOne Health?<br />

KentuckyOne Health does not include other Catholic Health Initiatives facilities or<br />

operations in other states. It also does not include community physicians who are<br />

currently independent of the partners.<br />

25. What are the financial aspects of the merger?<br />

Catholic Health Initiatives will contribute $320 million to launch KentuckyOne Health.<br />

The new system plans to invest in an integrated electronic health record system and<br />

other IT improvements plus make additional facility, equipment and telehealth<br />

investments in communities across the state.<br />

26. Will KentuckyOne Health provide care for those who can’t afford it?<br />

Caring for the poor, at-risk and uninsured is core to the missions of both<br />

organizations. The depth of this commitment is evident in year-over-year increases in<br />

the levels of community benefit, which includes charity care, by the merger partners.<br />

Together, the two organizations provided more than $72 million in uncompensated<br />

care in 2010.<br />

If you have a question you’d like to ask, please go to<br />

KentuckyOneEmployees.org and click on “Submit Your Questions”<br />

in the orange bar at the top of the page.<br />

February 7, 2012 4

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