Dr. Thomas Royer, who transitioned into the role of CEO Emeritus for CHRISTUS Health on 3/1/11, presents his final view of CHRISTUS' past, present, and future.

1. We are Ready for the Plane Transition Presentation January/February 2011 Presented by Thomas C. Royer, M.D. President and CEO

2. The Ministry Started on a Sailing Vessel – 1866 Extremely Slow Turbulent Waters Many Discomforts

3. The Galveston to San Antonio Trip in 1869 Utilized a Horse and Wagon Extremely slow Bumpy roads Many Discomforts

4. For the First 12 Years of the CHRISTUS Journey, beginning on February 1, 1999, a Train Model has been Utilized The Three Dimensional Integration Model Finance Planning Operations Spherical Vertical Vertical Horizontal

5. First Dimension Vertical Dimension Growth Individual Cars Vertical Finance Planning Operations Spherical Horizontal

6. Second Dimension Finance Spherical Dimension Operational Metrics Short-term Planning Linking the cars around common performance metrics Vertical Planning Operations Spherical Horizontal

7. Third Dimension Horizontal Dimension Future Planning Vision The linked train moving down the tracks to the System’s vision on the Journey to Excellence Finance Planning Vertical Operations Spherical Horizontal

8. Our Additional Uses of the Train Model . . . During challenging times the question we often ask ourselves … Are we the right people on the train? We determined that the ideal train for a successful Journey to Excellence would be … Having the right people in the right seats in the right car traveling down the right tracks.

10. Values

11. Creating Common Culture

13. CommonVision, revisited and restated 3 times

14. 3-Year rolling strategic planning

15. Matrix planning

19. 3 Drivers

20. 5 Strategic Directions

22. Labor Productivity

23. Asset Sales

24. Physician Integration

25. Use of evidenced based clinical protocols

26. Capital Review

27. Revenue Cycle Enhancements

28. Supply Chain Reevaluation

29. Information Management Upgrades

30. Continue Care & Non-Acute Strategies

32. Resistors to change

33. Uncertainties related to health care reform

34. Teaming constraints

35. Seeing ourselves as a business and not a ministry

36. Lack of energy to change

39. But, as Usual, Achieving Excellence will Always be Easier than Sustaining Excellence

40. The CHRISTUS Plane, hopefully, will take Us Faster to Our Future Reality . . . We will have highly integrated arrangements with physicians, sophisticated technologies, efficient use of capital, the ability to direct patients to the lowest cost setting consistent with high quality and evidenced-based best care practices, and command and control the care delivery process from start to finish in our acute, non-acute, and international divisions.

41. Yes, at Various Times during our History, we have . . . Used different modes of transportation Experienced various speeds of travel Overcome different challenges along the way

42. But, in Spite of the Differences, the Fabric of Our Transportation History is Weaved Together with some Common Threads Each “mode of transportation” was successful, strengthened by the learnings from overcoming the challenges Our journey has always had as one of its’ destinations to be one of the best health care systems in the world, particularly focused on the vulnerable and underserved AND

43. Driven by our Sponsoring Congregations’ Incarnational Spirituality since 1865, we have had the desire to continue to respond to the call of Bishop Dubuis to carry out the healing ministry of Jesus Christ.

44. YES, CHRISTUS Health is Ready to Board the Plane

45. Transition Presentation January/February 2011