State College, Pennsylvania

Leadership Profile

Senior Vice President, Human Resources and Organizational Development

Prepared by

Christine Mackey-Ross, RN Wendy Brower

January 2018

This Leadership Profile is intended to provide information about Mount Nittany Health and the position of Senior Vice President, Human Resources and Organizational Development. It is designed to assist qualified individuals in assessing their interest.

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Opportunity Overview

We are seeking a Senior Vice President, Human Resources and Organizational Development (SVPHROD) for Mount Nittany Health (MNH), State College, PA. This is an extraordinary opportunity to join a newly configured, high-performing senior leadership team in a thriving and evolving healthcare organization. MNH is a $500MM system comprised of a hospital, a 150-member employed medical group, child advocacy center, foundation and collaborative relationships with the region’s largest providers. The President & CEO, Kathleen Rhine, who has been with the organization a year, is focused on creating a structure and team that manages the continuum of services provided and aligns inpatient and outpatient operations to maximize performance under value-based reimbursement, while maintaining current robust financial performance. The new executive will join a collaborative leadership team focused on maintaining operational excellence and breaking down silos to promote “enterprise” thinking, while also identifying opportunities for further growth and development. The new paradigm requires a SVPHROD capable of leading cultural change and creating a supportive learning environment that prepares current associates for the future. The SVPHROD will be an integral member of the executive management team and serve as a system resource across Mount Nittany Health. This individual will be charged with leading the transformation of Human Resources as MNH looks to evolve to a fully integrated, strategic human resources model. She/he will craft and convey a new vision of human resources that brings in new thinking and perspective throughout the System. The SVPHROD will advise and partner with leadership concerning a variety of organizational initiatives and work closely within the System to translate strategic priorities into initiatives that promote the well-being of all MNH colleagues. The ideal candidate will be a system thinker and team player with a proven track record of aligning Human Resources strategy with an operating strategy while leading complex organizational changes that support an integrated enterprise. Candidates should have a minimum of ten years senior management experience in a large, sophisticated organization known for its excellence in the Human Resource function. Individuals, both inside and outside of healthcare, who have experience in organizations of similar complexity, are encouraged to apply. Opportunities for impact include: Creation and execution of an Organizational Development plan; Alignment of Human Resources with System strategy across all enterprise components; Advancing the HR function to one that partners with all other aspects of leadership as

decisions are made and implemented that promote MNH’s transition for future success.

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Position Summary The Senior Vice President, Human Resources and Organizational Development (SVPHROD) determines and provides leadership in developing, prioritizing and leading human resources (HR) strategy to support the overall business plan and strategic direction of MNH. The SVPHROD provides strategic leadership by articulating HR needs and plans to the executive leadership team and to the MNH Board of Directors. A primary responsibility for the SVPHROD is to be a strategic partner responsible for strengthening MNH through developing its people, structure, processes and practices.

The SVPHROD will be charged with leading the journey from the current to a future state of HR through evolving the function from a transactional to more strategic mindset. By leveraging appropriate technology and standardizing when and where appropriate, the overall goal is to have human resources within MNH functioning at the highest level. Areas of accountability include recruitment, talent management, employee engagement, employee orientation, change management, organizational and performance management, benefit administration, training and development, employee and labor relations, employee health and safety, employee assistance, regulatory compliance and compensation. She/he will oversee the continued enhancement and evaluation of Human Resources structure, business processes and HRIS systems. The SVPHROD will be a member of the executive team, working closely with the System leaders. The SVPHROD reports to the MNH CEO.

Responsibilities

Provide overall leadership and direction for these HR functions: recruitment, talent management, compensation and benefits, employee relations, Human Resources Information Systems (HRIS), operations, and employee health and safety.

Develop and lead HR strategy and the development of sophisticated HR-related programs and initiatives aligning with the overall strategic direction of MNH. This person is a strategic change agent who builds programs and process improvement.

Lead the development and execution of a human capital strategic plan, directly aligning with MNH’s overall strategic plan including the establishment of a plan for management succession.

Oversee continued enhancement and evaluation of HR business decisions, processes and policies and HRIS systems.

Partner with MNH executive leadership team to develop and implement programs that drive

patient satisfaction and employee engagement.

Manage administration of MNH’s wage and salary functions to provide the most effective and cost-efficient programs for recruitment and retention.

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Serve as a primary and comprehensive source of consultation and expertise to MNH executive leadership team, administration, Board of Directors and management on strategic and complex HR operational issues of key significance to MNH.

Function as a strategic business advisor to executive leadership of each business unit regarding key organizational and management issues.

Manage administration of competitive and cost-effective, comprehensive compensation and

benefit plans.

Identify, design and direct development of positive affirmative action programs to preclude inequities in minority employment, development or compensation.

Enhance and/or develop, implement and enforce MNH’s policies and procedures by way of

systems that will improve overall operation and effectiveness.

Ensure compliance with federal and state regulation pertaining to personnel matters. Partner with business unit leadership to support effective partnerships with those areas of

with organized professional representation.

Objectives for the SVPHROD The SVPHROD will be expected to advance several key objectives within the first 24 months of his/her tenure. The following goals represent some of these opportunities.

Establish personal and professional credibility as the new SVPHROD of MNH. Be an integral

member of the executive management team and a resource across the System.

Establish a style and culture within HR that promotes customer service, visibility and transparency. The SVPHROD will be seen by others as approachable and team oriented.

Create an organizational development function to include talent management, leadership and staff development, succession planning, change management and lean transformation.

Position HR as a strategic resource while also ensuring that all functions operate seamlessly at a system and site level.

Move toward transforming the culture and operational mindset beyond the goals of standardization and following best practice to one of strategic initiatives and setting best practice within the industry.

Develop and lead strategies that emphasize the importance of diversity at all levels of the organization. Promote an organizational culture where individual differences are respected and all associates feel welcome.

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Continue to identify and develop leadership within the System and provide the resource support to the senior executives in assessing performance capability and organizational structure. Create a systematic approach to talent management across MNH.

Partner with executive management team to identify ways to manage healthcare costs and identify new opportunities for service enhancements and cost efficiency through innovative Human Resource solutions.

Continue to foster a team culture that is focused on a strong commitment to each other and their further professional development.

Candidate Qualifications The ideal candidate will possess the following qualifications, experience, knowledge, skills and personal characteristics. Education & Certification Bachelor’s degree required in Human Resources, Health Care Administration, Business or related field. MBA in Human Resources or related field preferred. PHR or SPHR preferred.

Experience & Skills Minimum of ten years of progressive HR management and leadership experience with

5+ years of experience in a senior leadership role advising executive-level leaders in a health system or health care setting.

Solid understanding of the challenges and opportunities of the HR function in either a

hospital/group setting/health care system or an organization of similar complexity. She/he will be a systems thinker and have a strong track record of working with a large workforce in a complex and diverse, multi-site environment.

Broad knowledge of technical elements involved in Human Resources with specific functional experience in strategic recruitment and retention, employee and labor relations, compensation and benefits, organizational development and change management.

Proven ability to make quality-based, strategic business decisions and has initiated, designed, and implemented HR programs that meet organizational, financial, strategic and business objectives. Is financially savvy and metrics driven.

Strong project management skills, able to prioritize and adjust based on the changing needs of the organization.

Track record of mentoring and developing leaders from within, as well as attracting and

retaining strong talent.

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Demonstrated ability to express ideas logically, cogently and persuasively. Has exceptional written, presentation, and communication skills.

Experience serving in various capacities and engaged professionally for HR related activities or programs.

Personal Characteristics

Collaborative and team oriented.

Flexibility of thought and a willingness to actively listen to others regarding input and feedback. A genuine, open style and partners well with others.

A creative change agent who fosters a culture that embraces innovation. Able to move quickly while ensuring others are able to see and follow that broader vision. Willing and able to make mid-course corrections when needed.

Leads through influence and shepherding versus highly directive.

Strong, but with ego in check. Confident and able to make a decision and then communicate that direction effectively to all constituents.

Honest and leads with integrity and transparency.

Brings a passion to the role and exudes positive energy and enthusiasm for the challenges and opportunities presented. Able to motivate others and gain positive momentum.

Patient and persistent in approach.

Demonstrates a strong balance of personal and professional life. Possesses a sense of humor and optimism.

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Mount Nittany Health - Profile History

Where Mount Nittany Health (MNH) stands today is the result of a journey that spans more than 100 years. It all began July 8, 1902, when Bellefonte Hospital incorporated into a frame house with six patient beds. Continual growth led to a number of building and expansion programs, as well as a name change to Centre County Hospital in 1924 and then to Centre Community Hospital in 1971. The Bellefonte Hospital, called the Willowbank Unit, and the Mountainview Unit both operated until 1978, when Willowbank closed.

Major construction projects were completed in 1980 with the South wing, 1984 with the Health Services wing, 1989 with the Branigan wing – Emergency Department, and 1993 with an expansion and renovation. The Centre Medical Sciences Building opened in 1994, and the Centre Community Surgical Center began operation there.

During 1996 and 1997, major additions included a new birthing center, a new transitional care unit, an expansion of the laboratory and an operating suite renovation. An affiliation between Centre Community Hospital, Penn State Milton S. Hershey Medical Center, and Lehigh Valley Hospital created the Penn State Hershey Cancer Institute in September 2000.

In 2003, Centre Community Hospital’s name changed to Mount Nittany Medical Center, signifying its growth as a regional medical center. In 2007, Mount Nittany Medical Center, along with Hershey Medical Center and local physicians added interventional cardiology to its program. In 2010, the Medical Center opened the state-of-the-art East wing.

In 2011, the governing body incorporated Mount Nittany Health System to transition the hospital-based entity into a system organization. It also announced a major renovation and expansion of the Emergency Department, construction of a Comprehensive Cancer Pavilion, and the addition of 51 physicians to its Physician Group.

Today, MNH has emerged as a regional health system, growing in scope and prominence, with the mission of making people healthier. The System includes the parent organization, Mount Nittany Health System, along with Mount Nittany Medical Center, a 260-bed acute care facility with emergency, inpatient and surgical services; Mount Nittany Physician Group (MNPG), a practice with over 150 healthcare providers across 30 specialties and located in 17 convenient locations throughout the region; the Mount Nittany Health Foundation, its fundraising and development entity; and the Children's Advocacy Center, a non-profit organization that provides

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a community-based, child-focused center to facilitate a compassionate and multi-disciplinary approach to the prevention, identification, intervention and treatment of child abuse.

Mission

We are here to make people healthier. Vision

To become the most trusted source of healthcare for Central Pennsylvanians. Values

We will treat all patients with dignity and respect, and we will accommodate individual responses to the stress of illness.

We fully support the principles of Patient Rights and Responsibilities. We commit to a service excellence philosophy that strives to meet or exceed patient

expectations.

All patients receive a uniform standard of care throughout all of our facilities, regardless of social, cultural, financial, religious, racial, gender or sexual orientation factors.

Our medical staff works to ensure that patients receive only appropriate and effective tests, procedures and treatments.

We will fairly and accurately represent ourselves and our capabilities to the public. We are committed to constant preparation for the long-term financial viability of MNH,

through responsible utilization of resources in support of our commitment to meet the healthcare needs of the community.

MNH’s leadership will disclose and avoid potential conflicts of interest. All other staff will avoid similar conflicts of interest.

We will maintain an open treatment policy; no patient will be refused evaluation and service based upon sex, age, race, creed, national origin, sexual orientation, infection status or the ability to pay. Transfers to other facilities will occur only when we are unable to provide needed services and only to facilities that provide an appropriate level of care based on our assessment of the patient's needs. Patients may also request elective transfer, and an informed consent process will be followed.

Workforce

Mount Nittany Health employs over 2,500 staff, including over 400 registered nurses. Eighty percent of the workforce is employed by Mount Nittany Medical Center, with the remaining employed by Mount Nittany Physician Group. During the 12 months ended June 30, 2017, the Medical Center turnover rate for all staff was 10.2%. The registered nurse turnover rate for FY 2017 was approximately 4.7%. The Medical Center is 18 months into a three-year labor contract with SEIU Healthcare Pennsylvania (expires June 30, 2019). Included in the labor agreement are 976 nursing staff, technicians, maintenance, and service personnel.

Department of Nursing The Department of Nursing is currently staffed by 500 positions; almost half the staff is prepared at the Associate Degree level, 39% having attained a BSN, with another 14% in

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progress. Broad variations in census necessitate the use of multiple agency contracts. Satisfaction surveys and HCAHPS scores are good. Shared governance is established using Magnet principles, but the organization has not embarked on a formal Magnet journey. Each area does submit a detailed Care and Service plan, tied to the organizational strategy. Meditech is the inpatient electronic record and a major upgrade is underway with implementation in the Spring of 2018. For more than 30 years, all inpatient employees, with the exception of management, have been represented by collective bargaining units with relationships that have been positive. Physician Structures

Mount Nittany Medical Center's (MNMC) medical staff is comprised of 323 active physicians. Several multi-specialty group practices employ most of the physicians providing medical care at MNMC, including two sponsored by competing entities, Geisinger Health System (73 physicians/30% admissions) and Penn State Hershey's medical practices (27 physicians/ 2% admissions). In addition, University Orthopedics (unaffiliated with the University) is a nine- member group with an independent outpatient surgery center accounting for 13% of MNH’s annual inpatient admissions, and is a significant contributor to the health operating margin.

MNPG is a 96-member physician group operating on the main campus and at 16 other locations in and near State College, PA, accounting for 49% of the annual inpatient admissions. The group became active in 2008 and grew exponentially in January 2011 with the acquisition of a 51-member private multispecialty group, headquartered in the medical office building adjacent to the Medical Center.

Physicians are engaged in governance and operational activities at all levels of MNH, from serving on boards and board committees, membership on operational-level committees, to holding leadership roles in MNPG. All Boards in MNH include physician representation and physicians have been appointed to nearly all Health System Board Committees. One-third of the membership of the Board's strategic planning committee is comprised of physicians. Appropriately, physicians hold all three officer positions on the MNPG Board and the first physician was elected to an officer position on the Health System Board in July 2015. Strategic Position

Under mission and vision, MNH has grown to become the trusted leader in healthcare serving more than 400,000 people in Central Pennsylvania. With more than 2,300 employees, 260 beds, more than 90 employed physicians and seventeen locations, improving access and the patient experience are imperative in its mission to make people healthier.

In addition to achieving excellence and recognition in several service lines, MNH has noted significant expansions and improvements that have demonstrably improved access to care, quality and improved operations. By strategically providing primary care practices and specialty services throughout central Pennsylvania, MNH has positioned itself as the market leader for primary and specialty care while maintaining its brand strength of familiarity and trust.

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Its relationships with Penn State Hershey, Penn State College of Medicine, Penn State University, Geisinger, and other physician and surgical groups within central Pennsylvania, have provided the underpinning for unique and productive opportunities to recruit physicians, balance scope and scale, and integrate services and resources to achieve efficiencies and sustainability for the future. Relationships with Penn State College of Medicine and Penn State Hershey, specifically, have fostered success in academic medicine and a partnership for cancer care.

MNH has also achieved local, state and national recognition including Joint Commission accreditation, American Heart Association Get With The Guidelines® Gold Plus award for Heart Failure, American Heart and Stroke Association Get With The Guidelines®

Gold Plus award for Stroke, Accreditation for Cardiovascular Excellence in Cardiac Catheterization, Golden Apple teaching award, Joint Commission accreditation for Primary Stroke Center, and recognition for Diabetes and Cancer Care.

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The State College Community

Mount Nittany Health (MNH) is located in State College, Centre County, Pennsylvania. Beautiful rolling mountains, broad valleys, clean air, great schools and a focus on innovation – that's Centre County. Add to that, metropolitan experiences, small town charm, unique, all-season recreational activities and historic communities, and you'll understand why this central Pennsylvania haven is a great place to live, work and conduct business. State College is home to The Pennsylvania State University and is the quintessential college town. Known for its hospitality and charm, the town mixes shops, restaurants, and cultural and sporting events. The region is rich with opportunities for connoisseurs of the arts. Here you'll find live theatre, dance performances, museums, artists' studios, and more through an abundance of community organizations, as well as national and international performances through several venues at the University. Not far from the bustle of the town, are picturesque mountains and some of the most beautiful parks and picnic areas. Outdoor enthusiasts enjoy boating, fishing, swimming, hiking, golf, tennis and skiing. Pennsylvania State University offers unparalleled opportunities for cultural, intellectual and sporting activities. Children have opportunities to both private and public schools. The public schools are among the best in the state; State College Area School District's balanced academic competitiveness, accreditation, recognition for excellence, instructional expenditures, and small class sizes have received national acknowledgment.

College Township was named the 7th best place to live in America and Ferguson Township

was named the 12th best place to live in America by Niche in 2016.

State College was ranked 3rd as the lowest stress city in the United States by Sperling's Best Places.

According to Niche, State College ranked as the best town in Pennsylvania, and was named the 14th best town in the country.

State College metropolitan area was ranked as the 3rd safest city in the United States in 2013.

For additional information, visit: www.visitpennstate.org www.statecollege.com www.cbicc.org

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Procedure for Candidacy

Inquiries, nominations and applications are invited. Review of applications will begin immediately and continue until the position is filled. For fullest consideration, applicant materials should be received as soon as possible.

These materials should be sent electronically via e-mail to the Mount Nittany Health consultants, Christine Mackey-Ross, RN and Wendy Brower. Please direct all nominations and resumes through the office of Wendy Brower at MNHSVP@wittkieffer.com.

Wendy Brower Witt/Kieffer

7733 Forsyth Blvd., Suite 725 St. Louis, MO 63105

314-754-6072 wbrower@wittkieffer.com

The Mount Nittany Health values diversity and is committed to equal opportunity for all persons regardless of age, color, disability, ethnicity, marital status, national origin, race, religion, sex, sexual orientation, veteran

status or any other status protected by law.

The material presented in this leadership profile should be relied on for informational purposes only. This material has been copied, compiled, or quoted in part from Mount Nittany Health documents and personal interviews and is believed to be reliable. While every effort has been made to ensure the accuracy of this information, the original source documents and factual situations govern.

All images and logos used in this leadership profile were attained from Mount Nittany Health and/or are owned by Witt/Kieffer via Getty Images.

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Appendix One - Operating Statistics

The institution operates on a fiscal calendar, ending June 30th. MNH has historically seen strong financial performance from operations, and FY18 continues that trend. Volumes in both inpatient and outpatient encounters continue steady increases and the favorable payer mix remains stable.

Mount Nittany Health System – Core Statistics

Fiscal Year 2017

Total Revenue $429 million

Licensed Beds / Staffed Beds 260 / 260

MNMC Community Benefit $23.1 million

Full-Time Equivalents 2,091

Admissions 15, 519

Inpatient Days 54.444

ALOS 3.64

Surgical Procedures 12,504

Emergency Room Visits 58,120

Outpatient Visits (incl. ED) 311,584

MNPG worked Relative Value Units 614,957

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Mount Nittany Health

Operating Income - Financial Data

(dollars in thousands)

Gross Revenues $1,181,239

Net Patient Revenues $420,389

Total Expenses $391,000

Excess of Expenses $29,389

EBITDA Operating Margin 15.8%

Payor Mix Percentages Based on Gross Revenue

Medicare & managed Medicare 46.7

Medicaid 9.2

Blue Cross/Blue Shield 3.9

Highmark 19.1

Health America 2.5

Commercial 8.8

Geisinger Health Plan 4.3

Self-Pay and All Others 5.5

Percentage IP Business (hospital)

42.7

Percentage OP Business (hospital)

57.3

As of January 10, 2018