Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J....

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Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer [email protected] 404.605.2798

Transcript of Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J....

Page 1: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning

July 2013

Robert J. Di Vito, JD, CHRC

Chief Operating Officer

[email protected]

404.605.2798

Page 2: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

slide 2

Agenda

Overview of Piedmont Healthcare

Strategically aligning the Piedmont Healthcare Foundation

Measuring Success: Team & Individual

Engaging the Foundation Board; Restructuring the Board Committees

Acquiring & Dissolving the Henry Medical Center Foundation

Page 3: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Agenda

Overview of Piedmont Healthcare

Strategically aligning the Piedmont Healthcare Foundation

Measuring Success: Team & Individual

Engaging the Foundation Board; Restructuring the Board Committees

Acquiring & Dissolving the Henry Medical Center Foundation

Page 4: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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History of Piedmont Healthcare1905:

Piedmont

Sanatorium founded by Drs. Ludwig

Amster and Floyd Wilcox McRae

2004: Name changed to

Piedmont Healthcare; Piedmont

Mountainside acquired

2007: Piedmont Newnan acquired;

Piedmont Heart Institute formed

2012: Piedmont

Henry joins PHC

1925: name changed to Piedmont Hospital

1976: Piedmont Hospital

Foundation incorporated, 501(c)(3) tax

exempt status obtained

1957: moved to its

present address on Peachtree

Road

1983: Piedmont

Healthcare, a not-for-profit organization, as Piedmont

Medical Center

1997: Piedmont

Fayette opens

1994: Piedmont

Medical Care Corporation

and Piedmont Physician

Group formed

2011: Foundation

name changed to Piedmont Healthcare Foundation

2013: Henry Medical

Center Foundation

dissolved; all assets moved to Piedmont

Page 5: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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PHC in 2013

PHC

VISION2020

By 2020, Piedmont Healthcare will be nationally recognized as a Top 10 community healthcare system where patients want to go for a superior healthcare experience, dedicated professionals want to work, and the best physicians want to practice.

Piedmont Atlanta

529 beds

Piedmont Clinic

851 MDs

Piedmont Heart

Institute

85 MDs

Piedmont Medical Care Corporation

245 MDs

Piedmont Mountain-

side

42 beds

Piedmont Newnan

143 beds

Piedmont Henry

215 beds

Piedmont Fayette

157 beds

Piedmont Foundation

3100 Donors

Page 6: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Piedmont Healthcare: On the Map

Page 7: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Agenda

Overview of Piedmont Healthcare

Strategically aligning the Piedmont Healthcare Foundation

Measuring Success: Team & Individual

Engaging the Foundation Board; Restructuring the Board Committees

Acquiring & Dissolving the Henry Medical Center Foundation

Page 8: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Foundation’s Mission

Provide sustainable resources of private support for Piedmont priorities.

Page 9: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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PHCEVP & CAOEd Lovern

President, Piedmont Healthcare Foundation

Mendal Bouknight

Chief Operating OfficerRobert Di VitoDirector, Major

GiftsKelly Loftin

Donor RelationsOfficer

Erica Nelson

DirectorAnnual Giving & E-PhilanthropyJames Tobias

Director, Principal Major Gifts

Sarah Batts

Outreach Specialist

Felicia Brown

Gift Processing David Tatum

Director, Major Gifts James Gates

Waters PavilionLiaison

Lillian Thornton

Office Coordinator

Omega Burnett

Grants & Finance Officer

Anna Johanson

• PHC Finance• PHC-Wide Fund & Grant Managers• Decision Support

Project Coordinator

Carmen Smith

Sixty PlusProgram5 FTEs

PHCF Board of Directors

Piedmont Healthcare Foundation Org Structure (February 2013)

Page 10: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Where Will Piedmont Healthcare Be In 2016?

2014 Optimize &

Prepare

2016 Better

Transformed & Repositioned

Optimization & Preparation Strategies

· Breakeven on Medicare· Enhance Revenue Cycle· Improve Quality Outcomes· Establish Culture of Safety & Reliability· Improve Satisfaction – Patient, Physician,

& Employee · Explore Opportunities to Acquire / Partner

with Other Providers· Expand Ambulatory “Footprint”· Differentiate & Grow

Srv / Srv Lines· Secure & Grow

Physician Base

Optimization & Preparation Strategies

· Breakeven on Medicare· Enhance Revenue Cycle· Improve Quality Outcomes· Establish Culture of Safety & Reliability· Improve Satisfaction – Patient, Physician,

& Employee · Explore Opportunities to Acquire / Partner

with Other Providers· Expand Ambulatory “Footprint”· Differentiate & Grow

Srv / Srv Lines· Secure & Grow

Physician Base

Transformational Strategies

· Focused on Cost Management· Show a Margin on Medicare· Horizontal Integration as Appropriate · Built Infrastructure for Community Health· Built Infrastructure to Reduce Variability· Prepared for Value & Mgt of Payment Risk· Increased Alignment, Engagement, and Strategic

Involvement of Physicians· Increased Patient Engagement· Recognized by the Community as the Leading

“Value” Provider

Transformational Strategies

· Focused on Cost Management· Show a Margin on Medicare· Horizontal Integration as Appropriate · Built Infrastructure for Community Health· Built Infrastructure to Reduce Variability· Prepared for Value & Mgt of Payment Risk· Increased Alignment, Engagement, and Strategic

Involvement of Physicians· Increased Patient Engagement· Recognized by the Community as the Leading

“Value” Provider

Page 11: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Where Piedmont Must Evolve Its View of Philanthropy by 2016

2013Optimize &

Prepare

2016 Better

Transformed & Repositioned

From Traditional

· Tool for raising money· Logo, Look, Language· Needs· Organization· Deliver Programs· Market At . . .· Send Money· Donors· Emotional Reaction· Power of a Few

From Traditional

· Tool for raising money· Logo, Look, Language· Needs· Organization· Deliver Programs· Market At . . .· Send Money· Donors· Emotional Reaction· Power of a Few To Breakthrough

· What Piedmont stands for· A compelling mission, vision, values in action· Strategic Priorities· Cause· Deliver Outcomes (Value)· Community of Believers· Shared Values· Voice of Many

To Breakthrough

· What Piedmont stands for· A compelling mission, vision, values in action· Strategic Priorities· Cause· Deliver Outcomes (Value)· Community of Believers· Shared Values· Voice of Many

Page 12: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Where Will The Piedmont Foundation Be In 2016?

2012 Optimize &

Prepare

2016 Better

Transformed & Repositioned

Nice to Have/Appreciated

· Passive Board – No Governance· An Afterthought for Projects or “Needs”· Vaguely Reported· Respectable ROI· Set annual targets based on three-year

rolling average.

Nice to Have/Appreciated

· Passive Board – No Governance· An Afterthought for Projects or “Needs”· Vaguely Reported· Respectable ROI· Set annual targets based on three-year

rolling average.

Essential/Strategically Engaged

· Empowered Foundation Board – Strong Governance

· Aligned and at the table with the Strategic Plan, Senior Leadership and Capital Planning

· Fully Transparent· Strategic ROI/Production Dollars/Net Raised per

FTE· Set fund raising goals/campaigns based on

donor-fundable priorities across the system.

Essential/Strategically Engaged

· Empowered Foundation Board – Strong Governance

· Aligned and at the table with the Strategic Plan, Senior Leadership and Capital Planning

· Fully Transparent· Strategic ROI/Production Dollars/Net Raised per

FTE· Set fund raising goals/campaigns based on

donor-fundable priorities across the system.

Page 13: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Defining Essential

Activity Current State: Nice to Have Future State: Essential

Fundraising Goal Internal to department; Finance doesn’t report to leadership or Boards

External fundraising goal; Finance reports to leadership and Boards; relied on by the System

Return on Investment Target set internal to department Target set by Foundation & System Leadership;

Priority Setting Foundation & each entity determines strategic priorities for fundraising

During each budget cycle, Foundation & System determine fundable projects & reach agreement on financial goal

Spending Funds either not used or used when remembered

Spending part of culture; budgets established and funds utilized

Staff Deployment Centralized, with some alignment to individual entities Centralized, all aligned to system priorities

Board Engagement Knowledge of fundraising goals Ownership of fundraising goals

External Contribution Reporting

Contributions not consolidated on any one entity IRS 990 Consolidate on to PHCF IRS 990

Page 14: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Current Piedmont Healthcare Foundation Structure

• PHCF Board reorganized in Feb 2011• Assures Piedmont’s philanthropic support is generated and stewarded into

valuable gifts meeting the immediate and future healthcare needs of the region.

• PHCF Operates as Type III Supporting Organization• Foundation under PHC• Contributions and grants are received by Foundation• Contributions and grants recorded on individual entity’s financial statement and

990’s; beginning FY2012, summarized on Foundation’s 990, Schedule A & O• Foundation Responsible for Solicitation; Donor Stewardship/Relations• Entity Finance Departments Responsible for Fund Accounting and Budgeting

Page 15: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Recommended Piedmont Healthcare Foundation (PHFC) Structure

• Operate as a Type 1, 501(c)(3) supporting foundation• Contributions and grants received, recorded and maintained on PHCF’s financial

statement and 990• Transfer funds to entity when costs are incurred• Establish single PHCF Finance Person; reporting to PHC CFO or Controller with

dotted line to PHCF• Governance, PHCF accountable to PHC Board and CEO of PHC• Operationally, PHCF staff report to the CAO

• Rationale• Models the benchmarked organizations nationally and in Metro Atlanta• Allows for full PHCF Board oversight• Consolidates Solicitation, Donor Stewardship/Relations and Fund Accounting under

one entity• All gifts can be made payable to PHCF

Next Steps

• Determine oversight role of PHCF and PHC Boards• Determine Board committees and reporting• Align Foundation with Piedmont system priorities

Page 16: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Summary of Financial Operating ModelsComparable Healthcare Foundations

Issue Piedmont Wellstar Banner Sharp Inter-mountain Shepherd Center Grady

Gwinnett Medical Center

Tanner Medical

Revenue reported on Foundation 990? No Yes Yes Yes Yes No Yes Yes Yes

Where do funds reside? Entities Foundation Foundation Foundation

Foundation; swept to entity at end of year

Entities Foundation Foundation Foundation

Who can “spend” restricted funds?

Department /Service Line Manager

Foundation Board

CEO/CFO Approval;Foundation board for larger expenses

<$25,000: Managers$25,000 Administrators

Foundation Board

CFO & Foundation Executive Director

Foundation President

Department/Service Line Manager

Hospital President & Foundation President

Timing for spending restricted funds Budget cycle Anytime Anytime Budget Cycle Budget Cycle Budget Cycle Budget Cycle Budget Cycle Budget Cycle

Agreements in place between Foundation and Finance

No formal agreements Draft policy No formal

agreementsNo formal agreements

No formal agreements

No formal agreements

No formal agreements Unknown No formal

agreements

Foundation Role/Responsibility

Foundation deposits funds directly with entity; tracks inflows

Operations director tracks inflows/outflows; liaises with Accounting

Operations director liaises with Accounting

Operations director tracks inflows/outflows; liaises with Accounting

Operations director liaises with Accounting

Foundation liaises with dedicated FTE in hospital’s finance department every night.

Accountant and Director of Finance with Foundation liaise with hospital as needed.

UnknownFoundation staff member liaises with finance as needed.

Finance Role/Responsibility

All Reconciliation and reporting of restricted funds.

Enters adjustments in General Ledger

Enters adjustments to funds in General Ledger

Enters adjustments to funds in General Ledger; prepares form 990.

Enters adjustments to funds in General Ledger

Dedicated FTE within hospital’s finance department to enter adjustments to funds in General Ledger daily.

Enters adjustments to funds in General Ledger as needed.

UnknownEnters adjustments to funds in General Ledger as needed.

Page 17: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Agenda

Overview of Piedmont Healthcare

Strategically aligning the Piedmont Healthcare Foundation

Measuring Success: Team & Individual

Engaging the Foundation Board; Restructuring the Board Committees

Acquiring & Dissolving the Henry Medical Center Foundation

Page 18: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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PHCF – Return on Investment; FY2014 Goal

Fiscal Year Total Budget Total Raised ROI Net Raised

FY 2004 $725,090 $3,067,132 $4.23 $2,342,042

FY 2005 $1,166,950 $6,021,463 $5.16 $4,854,513

FY 2006 $1,153,815 $4,996,021 $4.33 $3,842,206FY12 Marcus

Gift Years of Pledge Amt Considered in each year

FY 2007 $1,426,991 $16,553,098 $11.60 $15,126,107 $13,270,000 5 $2,654,000

FY 2008 $1,310,352 $7,862,114 $6.00 $6,551,762 FY 12 FY 13

FY 2009 $2,128,993 $6,876,648 $3.23 $4,747,655 $19,792,579 Total Raised $9,140,010 Total Raised

FY 2010 $1,979,276 $6,017,000 $3.04 $4,037,724 -$13,270,000 Full Marcus $0.00 Full Marcus

$2,654,000 Yearly Share $2,654,000 Yearly Share

Total Expenses Total Raised ROI Net Raised $9,176,579 Adjusted Raised $11,794,010Adjusted

Raised

FY 2011 $2,046,950 $8,243,099 $4.03 $6,196,149

FY 2012 $1,751,748 $19,792,579 $11.30 $18,040,831 $5.24Adjusted FY 13

ROI

FY 2013 $2,250,000* $9,140,010 $4.06 $6,890,010 $5.24Adjusted FY 12

ROI

$4.03 FY 11 ROI

Total Budget Target Raised Target ROI 3 year AverageTarget FY

2014 $1,922,322 $9,295,916 $4.84 $7,373,594 $4.84 Target FY14 ROI

* Estimated

Page 19: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Piedmont Healthcare FoundationFY2013 Metrics through June 30, 2013

*Approximately an additional $5M has been identified by fund managers as having been spent, Foundation is working with PHC Finance to ensure restricted funds are transferred to offset these expenses.

Category FY 13 Actual FY13 Target

Total Dollars Raised$9,194,010

$9,000,000 (102% of Goal)

Spent Dollars $5,353,576* $10,000,000(Thru May 31) (54% of Goal)

Active Donors 3,100 3,500(88.6% of Goal)

Entity Total Pledges/CashAtlanta $5,053,902

Corporate $1,081,265 Fayette $406,224

Foundation $402,333Heart Institute $1,747,052

Henry $237,665Mountainside $44,900

Newnan $220,668

Service Line Total Pledges/CashCardiovascular $2,217,411

Oncology $1,924,068 Neuroscience $55,885

Transplant $750,806Women's Services $1,555,008

Unrestricted $420,552 Other $2,270,280

Page 20: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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PHCF’s Metrics, Continued

Internal (Monthly)

Average Gift over $10K** $ 81,073

Average Gift under $100K $ 1,104

Community Outreach

# of Tours/Events 18

# of Participants 1647

# of Fundraising Events 13

Funds Raised $ 243,183

Piedmont-led FE ROI $ 2.51

Waters Pavilion

Occupancy Rate (thru June 2013) 46% 50%Net Income (thru May 2013) $ 396,767

Staff Moves Identify/Qualify 178

Cultivation 245

Solicitation 179

Donor Relations 2190

Close 48

Number of Donors (88.6% of goal) 3100 3500

FY 2013 Actual FY to Date

FY 2013 TargetAnnual

** Not including gifts over $1M

Page 21: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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All EntitiesFY 2013 Grants and Funds Spending Detail: $11,121,729

Capital: Construction

Capital: Equipment

Community Support

Education

Research

Program Support

Patient Financial Assistance

Employee Financial Assistance

Unrestricted

$24,550.00

$927,278.00

$754,596.00

$242,231.00

$15,301.00

$1,261,256.00$251,738.00

$71,690.00

$375,508.00

Expenditures through March 31 - All Entities ($3,924,148)

Capital: Construction

Capital: Equipment

Community Support

Education

Research

Program Support

Patient Financial Assistance

Employee Financial Assistance

$2,658,260.00

$3,735,059.00$65,000.00

$40,329.00

$0.00

$506,375.00

$107,558.00

$85,000.00

Pending Expenditures - All Entities ($7,197,581)

Page 22: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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FY 2014 Grants and Funds Budget Detail for all Entities $9,694,900*

Capital: Construction

Capital: Equipment

Community Support

Education

Research

Program Support

Patient Financial Assistance

Employee Financial Assistance

Unrestricted

$1,674,700.00

$2,110,816.00

$1,053,719.00

$1,150,911.00

$76,000.00

$2,796,028.52$437,725.00

$120,000.00

$275,000.00

All Entities ($9,694,900)

* $1, 427,896 of the budgeted spending is from endowment distributions

Page 23: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Robert Di Vito

*COMPLETE* *IN-PROGRESS* *INCOMPLETE*

OBJECTIVE STATUS COMMENTSIdentify, assist in preparing and submit $1,000,000 in grants As of 1/31/13 - Submitted $1,788,087 in

grants and proposals including Komen, ITJ, CME Grants and Harris Trust

Optimize the operational functions of the Foundation to efficiently and effectively record, administer, steward grants and gifts

Acknowledgement Letters are still going out later than required. David, Anna, Jamie, Carmen and Erica refining processes.

Continue to lead the work with PHC Finance to ensure the timely recording and reporting of gifts and grants

On-going. Monthly meetings continuing; Many outstanding items with some progress; Anna is now sending reports to PHC Finance. Robert met with Marie Gaffney to discuss continuing challenges. Larger meeting betw Fin and Found happening on April 22nd

Other Working with Finance to close Aux bank accounts at PHH, PFH and PNH. Meeting with Fin and Exec Teams at hospitals to ensure process of recording gifts is changed so that all contributions come to PHCF

Page 24: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Agenda

Overview of Piedmont Healthcare

Strategically aligning the Piedmont Healthcare Foundation

Measuring Success: Team & Individual

Engaging the Foundation Board; Restructuring the Board Committees

Acquiring & Dissolving the Henry Medical Center Foundation

Page 25: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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• Began the journey three years ago• Renamed Foundation from

associated with one hospital to fund raising entity for all entities

• By-Laws revised• Nominations became more

deliberate• Core Group of Foundation

Members set the direction of the Board

o Task Force Met with PHC Executives

o Task Force is driving the discussion

o More integration between PHC and PHCF Boards

Engaging the Board

Page 26: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Two staff on One Board Member Interviews Conducted

• As you saw in the presentation at the Retreat, our Foundation has undergone significant transformation in the past several years.  How do you envision the Foundation five years from now?  What changes would you like to see?

• Can you think of ways that you personally can help us?

• What Foundation Board activities would be meaningful for you to become involved?

• Our Board’s minimum contribution is $1,000. Several members have proposed raising the commitment to $5,000 or $10,000. How do you feel about that?

• How committed are you to the mission and vision of this organization? 

• Is the organization really doing what it says it is doing in the community?

• What do you look for in non-profits that you choose to support?  How does Piedmont measure up relative to other organizations you support?

• What would you do with your philanthropic support that would be the most meaningful to you?

• Review slide 12 from the presentation. What will it take for Piedmont and the Foundation to accomplish the “what if’s?”

Page 27: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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• . . . Piedmont and the Foundation worked together to bring world class care closer to home?

• . . . each Foundation Board member clearly understood and could articulate the case for support?

• . . . ALL Piedmont boards were fully engaged and philanthropically supportive of our vision?

• . . . the Atlanta community leaders and Piedmont partnered to transform healthcare for Atlanta and the Southeast?

• . . . all Piedmont boards had increased giving capacity and joined us to achieve our vision?

• . . . the Foundation staff and board members worked in tandem to share the Piedmont promise with the community?

• . . . there was a state of the art facility that attracts world renowned talent to advance treatment, innovation and education

What if…

Page 28: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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• Organization of the Board- On the right path- Need more people connected to community and who can provide impact gifts- More accountability and decision making

• Work of the Board- Desire more engagement and connection to other Board members and the organization

• Fundraising Priorities- OK with system priorities as long as there is clarity on how this impacts the local entity and community- Look for collaborative partners

Overview of Interviews with Board Members

Page 29: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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• Level of Support Required- 100% of all boards giving is non-negotiable- $1,000 minimum is appropriate threshold with encouragement to give more if able

• Priority of Personal Giving- Unrestricted (system, Southside and local) is supported as long as priorities for unrestricted are clearly known and the organization uses unrestricted gifts for those named priorities- Must show strong accountability and stewardship

• Is Piedmont living the Piedmont Promise- Yes. . .- However, requires more transparency on the priorities so the public understands how the Piedmont Promise impacts them and the community

Overview of Interviews with Board Members

Page 30: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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New and Refined Board Committees

Executive Committee - Responsibilities: The principle responsibility of the PHCF Executive Committee is to hold the powers of the board of directors between meetings include setting the Board Meeting agenda as well as to review, evaluate and recommend matters to the PHCF Board of Directors. Structure: The PHCF Executive Committee consists of the Chairman of the Board and the Committee Chairs. Nominations & Governance Committee - Responsibilities: The Nominations & Governance Committee oversees the process for nominating members and officers to the PHCF Board of Directors. The Committee is also charged with reviewing proposed changes to the PHCF governance and presenting them to the full Board for consideration and action. Structure: The PHCF Nominations & Governance Committee consists of no more than 8 members of the PHCF Board of Directors. Contributions & Grants Policy Committee - Responsibilities: The Contributions & Grants Policy Committee serves the Foundation through the development of new policies and review of existing policies for the disbursement and oversight of contributions and grants made to any entity of Piedmont Healthcare. Structure: The PHCF Contributions & Grants Policy Committee consists of no more than 8 members of the PHCF Board of Directors. Allocations & Priorities Committee - Responsibilities: The purpose of the Allocations & Priorities Committee is to review, evaluate and approve potential philanthropic resource allocation to Piedmont Healthcare and its entities. The Committee is also charged with overseeing the development of cases for support, solicitation of gifts and establishing the guiding principles to establish philanthropic priorities. Structure: The PHCF Allocations & Priorities Committee consists of no more than 8 members of the PHCF Board of Directors. Finance & Audit Committee - Responsibilities: The Finance and Audit Committee serves the Foundation through the reviewing and monitoring of the Foundation’s operational, funds and grants budgets and developing and implementing audit processes to ensure appropriate resource allocation and reporting to fulfill the PHCF mission. Structure: The PHCF Finance & Audit Committee consists of no more than 8 members of the PHCF Board of Directors.

Page 31: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Nominations Weighted Criteria

New Board Member

Reflection of Community

Influence in Community

Other Volunteer

Experience

Donor

Professional Affiliation

Capacity

Time to Commit

Page 32: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Agenda

Overview of Piedmont Healthcare

Strategically aligning the Piedmont Healthcare Foundation

Measuring Success: Team & Individual

Engaging the Foundation Board; Restructuring the Board Committees

Acquiring & Dissolving the Henry Medical Center Foundation

Page 33: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Acquiring and Dissolving the Henry Medical Center Foundation

• Henry Medical Center Foundation – Overviewo April 1983 - 501 (c)(3) determinedo 2 person staff – “Supporting the work of Henry Medical Center and financially

provide the margin of excellence”o Funds raised overwhelmingly supported the general operations of HMCFo Special events and employee giving campaign were primary fund raising

strategies; three year return on investment was $.93• Prior to Acquisition – regular informational meetings between HMCF and

PHCF; discuss plan for the incorporation of HMCF into PHCF• At Acquisition

o Finalize plan to bring HMCF into PHCFo Staff report to President and COOo Board votes to be subservient to PHCo Board votes on pathway to dissolution, by end of calendar year

• After Acquisitiono Attorney draws up dissolution document; Board approveso Prior to Dec 31, 2012, all funds transferred to PHCo Prior Board became PHH Foundation Council

Page 34: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Foundation Council

• Foundation Council Structureo 10-15 highly influential community leaderso 3 Council meetings per yearo Foundation Staff will work with members to identify and to provide cultivation opportunities for major donorso Foundation Staff will provide training for Council Members interested in developing talking points regarding major gift

opportunitieso Participate in ancillary opportunities outside designed to identify/cultivate donorso Participate in solicitation of giftso Initial Council meetings will consist of tours of Piedmont priority needs and naming opportunities

• Terms of Serviceo The terms of service will be three-year increments

• Foundation Council Member Expectationso The purpose of the Council is to build friends and donorso Council members are expected to support the mission of Piedmont, by developing, implementing, and overseeing fund

raising strategies for Piedmonto Council members are expected to attend 75% of all council meetings during their termso Council members are expected to lead the community by example in their own personal giving to Piedmont. It is

expected that these gifts will average $1,000/year and some may be higher depending on individual ability. Donors are recognized for their inclusive giving including gifts directed to a specific program or service, unrestricted gifts, gifts in honor or memory of individuals, and gifts to Piedmont special events (or to external events benefiting Piedmont if a donation is given directly to the hospital)

o Council members shall be advocates for Piedmont within the communityo Council members shall identify a minimum of two (2) businesses/individual prospects annually and actively assist staff

with introductions, meetings and discussions related to philanthropyo Council members shall prepare and accompany staff in cultivation efforts with major prospects which the Foundation

Staff will research prospect and draft strategy

Page 35: Navigating the Uncertainties of Acquisitions, Governance and Strategic Planning July 2013 Robert J. Di Vito, JD, CHRC Chief Operating Officer robert.divito@piedmont.org.

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Outcome & Results and Lessons Learned from Acquisition

• Outcomes & Resultso Funds raised go to programs instead of general operating supporto Employee campaign most successful ever – raised close to $100Ko Fully integrated Raiser’s Edgeo Reduced number of Special Eventso Both legacy staff members transitioned out

• Lessons Learnedo Communications of expectations is critically important

Unknowingly, Board and Staff were on a different page than PHCF Staff Difficult for HMCF and Piedmont Henry to release special events – seen as

community relations eventso Hospital and Foundation Operating Executives need to have regular

meetingso Don’t underestimate culture and community