Exhibit 63 illustrates the organized delivery system

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Exhibit 6.3 illustrates the organized delivery system. Exhibit 6.3. Characteristics of Lakeview Healthcare (All Hospitals) Factors LHC characteristics Organizational experience with Lean at initiation of study Some experience Geographic location East Region density Small urban Special organization designation N/A Hospital beds (in each location) Hospital 1: 188 Hospital 2: 433 Hospital 3: 368 Hospital 4: 95 Teaching hospital No Physician employment model Mixed (staff/employed and community-based with privileges) Use of an external Lean consultant Yes LHC has roughly 8,400 clinical and administrative employees and is one of the area’s largest employers. Approximately 2,000 physicians serve as medical staff members, both as employed physicians and community-based physicians with privileges. LHC has been recognized 3 years in a row as the “#1 Best Employer” by a business journal. Staff turnover was only mentioned by one interviewee, a staff person from the Management Engineering Department, who indicated some degree of turnover in the nursing staff and Management Engineering Department. It is interesting to note that nearly all individuals interviewed had been with LHC for 5 years or longer. In 2009, LHC acquired a series of physician practices and consolidated them into a medical group (in this study, call ed “LHC Medical Group”), which employs approximately 200 physicians from various specialties, including family medicine, surgery, and oncology. In addition, LHC’s hospitals employ 130 hospitalists (physicians who specialize in treating inpatients) across the four locations. An additional 1,670 community-based physicians who are not employed by LHC receive privileges to practice at its hospitals and other care facilities. Despite its large size, executives and other interviewees indicated that the structure of LHC was relatively “flat.” Although leadership staff for the hospital, LHC Medical Group, and ambulatory care center report directly to the COO of the organization, individuals at all levels have access to senior staff. LHC employs an extensive rewards system for staff performance. Hospital leadership bestows “Wow” Awards on individual staff members who go above and beyond the call of duty. When an individual receives five “Wow” Awards, he or she can turn them in for a $25 gift card. Individuals and team s are nominated and awarded “STAR Awards,” which are likened to the Grammy Awards. LHC also offers monetary awards and end-of-year bonuses to staff, including
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212 management, directly tied to performance according to the five points of the cultural transformation initiative. Executives and management can receive a 10-40 percent incentive based on the five points of a cultural transformation initiative, which are the basis for setting management goals and objectives.
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  • Fall '17
  • Shankar Purbey

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