A vision for the future of Memorial Health System

1. A vision for the future of Memorial Health System A Transformational Partnership

2. University of Colorado Hospital History • 1921: Colorado General Hospital founded • 1978: The hospital was renamed University of Colorado Hospital • 1991: The University of Colorado Hospital Authority was created • 2007: Completed move to Anschutz Medical Campus Despite our Name We Receive NO State Dollars

3. Poudre Valley Health History 1925: Poudre Valley Hospital was built (originally the Larimer County Hospital) 1994: Poudre Valley Health Care Inc., d/b/a Poudre Valley Health System was created 2007: Medical Center of the Rockies opened along I-25 in Loveland 2009: Poudre Valley Medical Group, more than 24 outpatient primary care and specialty clinics, was created

4. Mission Poudre Valley Health The mission of Poudre Valley Health is to be an integrated, non-profit organization providing innovative, comprehensive care of the highest quality while exceeding expectations of the communities we serve. University of Colorado Hospital Advancing healthcare for our patients and their families through healing, discovery and education.

5. University of Colorado Hospital By 2020, the University of Colorado Hospital will be recognized as one of the top 10 academic medical centers in the United States. Vision Poudre Valley Health The vision of Poudre Valley Health is to provide world-class health care.

6. Values Poudre Valley Health In pursuing this mission, we adhere to the following values: • Quality • Compassion • Confidentiality • Dignity/respect • Equality • Integrity University of Colorado Hospital With passion to live our mission and courage to reach our vision, we value relationships, excellence, integrity, and knowledge to create an environment where together we all make a difference.

7. By the Numbers (FY11)

8. A shifting health care landscape

9. A Transformational Partnership Page 9

10. What we can build together … A New, Not-for-Profit, Colorado-Based Health Care System

11. The Power of Partnership • University of Colorado Hospital • Ranked #1 in the nation among academic hospitals • Poudre Valley Health System • Recipient of Malcolm Baldrige National Quality Award • Children’s Hospital Colorado • Ranked in the top 5 of all Children’s Hospitals nationally • University of Colorado • Leading public research university with nearly $800M in sponsored research annually • University of Colorado School of Medicine • Ranked #7 among public medical schools in research funding and #4 among all medical schools in primary care

12. A Vision for Memorial • Establishes Memorial as Southern Colorado’s Flagship Hospital • Creates a branch medical campus for the Pikes Peak region • Expands longstanding service of providing health care to members of the military and their families • Commits to care for the elderly, as well as the un-insured and under-insured • Expands clinical & research services • Supports Memorial’s Medical Staff

13. What We Would Look Like Employees and Net Revenues: [1] PVHS numbers include 600 employed physicians [2] UCH based on Fiscal Year ended 6/30/2011, PVHS and MHS based on Calendar Year ended 12/31/2010

14. Our Investment in the Partnership • $1.8 billion investment in Colorado Springs community over 40 year lease • $74 million of upfront cash to the City • $5.6 million annually for 30 years to the City of Colorado Springs • Estimated average of $2.5 million annually in revenue sharing for the City equaling a projected $151 million return • $1.2 billion capital commitment • $120 million for the branch medical school campus • Provides a solution to the PERA liability • Estimated potential economic impact of proposal using conservative assumptions: $1.3 to $1.5 billion annually

15. Solving Real Challenges • Supporting the core • Local 501(c)(3) non-profit with local board • Quality patient care (military and uninsured needs) • Physician support and employee support • Local suppliers and vendors • Solving problems • Debt retired • PERA issue solved • Cash up front • Economic powerhouse • Ongoing revenue stream to city