Performance Reports

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PRACTICE PROFILE
JANUARY 11, 2005
Timothy OConnor Executive Vice President Chief
Financial Officer Treasurer
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About Lahey

• Dr. Frank Lahey formed a group practice in 1923
  with a vision that every component of a patients
  health care would be coordinated under one roof.
• The practice was located on Commonwealth Ave in
  Boston until 1980 when it moved to its current
  Burlington location.
• From 1923 to 1980 the physicians of the Lahey
  Clinic practiced at the New England Deaconess
  Hospital and the Brooks Hospital.
• The move to Burlington in 1980 included the
  building of Laheys first hospital, a 200 bed
  Lahey Clinic Hospital.

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About Lahey

• In 1990 the Hospital expanded adding 72 beds.
• Between 1993 and 1997 the Clinic expanded by
  acquiring group practices in approximately 30
  communities which added approximately 150
  physicians.
• In 1994 the Hospital expanded again by acquiring
  the Symmes Hospital in Arlington in a partnership
  with Advantage Health.

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About Lahey

• Later in 1994 the Hospitals expansion continued,
  this time by building a new facility in Peabody
  that included 10 inpatient beds, an emergency
  room, ambulatory surgery, outpatient treatment
  and diagnostic services and an ambulatory clinic
  with multiple physician specialties.

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About Lahey

• Around 1999 the Symmes Hospital in Arlington
  closed its inpatient services and emergency
  services, the partnership with Advantage Health
  was discontinued and Lahey began operating
  outpatient diagnostic and testing services along
  with physician services in that facility under
  the Lahey Clinic Hospital license.
• Between 1999 and 2003 the Clinic did not renew
  the contracts of some of the community group
  practices reducing the size of the community
  practice network to 13 sites and 80 physicians.

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Lahey Today

• Today Lahey is an integrated group practice and
  hospital and operates
• Lahey Clinic, Inc. a 420 FTE physician group
  practice with 18 locations seeing approximately
  1,000,000 visits per year and 2,000,000 WRVUs.
• Lahey Clinic Hospital, Inc. a Tufts teaching
  hospital with 130 residents 278 beds at three
  locations serving 19,000 discharges with an
  average length of stay of 4.6 and a CMI of 1.78
  55,000 emergency room visits 12,000 ambulatory
  surgeries 3,300 observation patients and
  1,200,000 outpatient visits.
• Lahey Clinic Foundation, Inc. a company holding
  all of the capital assets, investments and debt
  as well as the philanthropy for the organization.

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Lahey Today

• Today Lahey operates
• Lahey Clinic Affiliated Services, Inc. an entity
  partnering with other health care providers in
  surrounding communities to deliver care.
• Lahey Clinic Insurance Company Limited a medical
  malpractice captive insurance company domiciled
  in Bermuda to provide medical practice and
  general liability insurance to the Lahey
  organizations.
• Lahey Clinic Canadian Foundation a Canadian
  company that provides grateful patients that are
  Canadian nationals the ability to donate money to
  Lahey and receive a Canadian tax deduction.

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Mission Statement

• Lahey Clinic, as one of the worlds premier
  health care organizations, will
• Provide superior customized health care tailored
  to each patients needs to ensure the best
  possible outcome for every patient
• Exceed our patients high expectations for
  service each day and
• Advance medicine through research and the
  education of tomorrows health care leaders.

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Mission Statement

• Our goal is to care for our patients
• With compassion and openness
• With unsurpassed expertise
• With a drive for continuous learning and
  improvement, and, according to our Guiding
  Principles
• With respect recognizing everyones
  contribution and value
• With caring valuing others accomplishments
• With excellence striving to exceed expectations
  for quality
• Through teamwork sharing, cooperating, and
  working together for success
• With commitment to doing our personal best
  valuing integrity, performance, and pride in
  ones work.

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Corporate Overview

• Lahey Clinic is comprised of six sister
  corporations
• Lahey Clinic, Inc.
• Lahey Clinic Hospital, Inc.
• Lahey Clinic Foundation, Inc.
• Lahey Clinic Affiliated Services, Inc.
• Lahey Clinic Insurance Company Limited
• Lahey Clinic Canadian Foundation

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Corporate Structure
Lahey Clinic, Inc
Lahey Clinic Hospital, Inc
Lahey Clinic Foundation, Inc
Lahey Clinic Affiliated Serv, Inc
Lahey Clinic Insurance Co, Ltd
Lahey Clinic Canadian Foundation
Burlington
Burlington
Corporate
Corporate
Corporate
Corporate
Northshore
Northshore
Arlington
Arlington
Lexington
Corporate
Community
Amesbury . Merrimac . Haverhill
Arlington . Billerica
Arlington Pediatrics
Beverly . Danvers . Ipswich
Essex
Hamilton Wenham
Lexington
Wilmington
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Division Overview

• The organization operates in six geographic
  divisions
• Lahey Clinic Medical Center Burlington
• Lahey Clinic Northshore Peabody
• Lahey Arlington
• Lahey Lexington
• Lahey Community Group Practices (13 locations)
• Lahey Corporate

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Division Structure
Burlington
Northshore
Arlington
Lexington
Community
Corporate
Clinic
Clinic
Clinic
Clinic
Clinic
Hospital
Hospital
Hospital
Foundation
Hospital
Affiliated
Insurance
Canadian Found
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Executive Overview

• Chief Executive Officer
• EVP, Chief Financial Officer and Treasurer
• EVP, General Counsel and Secretary
• EVP, Chief Operating Officer and Chief Medical
  Officer
• SVP, Chief Nursing Officer
• SVP, Philanthropy

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Executive Structure
Chief Executive Officer
EVP CFO and Treasurer
EVP General Counsel
EVP COO and CMO
SVP CNO
SVP Philanthropy
Community Finance
Claims Mamagement
Ambulatory Services
Hospital Services
Cardiac Care
Philanthropy
Airway Diseases Cancer Cardiovascular Community
Medicine GI and Transplant International
Health Musculoskeletal Neurosciences Primary
Care Womens / Mens Health
Anesthesia Emergency and Trauma Laboratory Operati
ng Rooms Pathology Pharmacy Radiology
Contracting
Corporate Compliance
Emergency Services
Legal Services
Corporate Finance
Intensive Care
Internal Audit
Risk Management
Medical and Surgical
Financial Services
Nursing Education
Patient Finance
Surgical Services
Infrastructure Services
Revenue Finance
Care Management Facilities and Operations Human
Resources Information Services Medical Education
Patient and MD Support Public Affairs Research Str
ategy and Planning Support Services
Treasury Services
LC Insurance Company
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Clinical Overview

• Chief Executive Officer
• Division Chair, Internal Medicine
• Division Chair Medical Specialties
• Division Chair, Surgery
• Division Chair, Hospital Based
• Division Chair, Community Medicine

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Clinical Structure
Chief Executive Officer Board of Governors
Division Chair Internal Medicine
Division Chair Medical Specialties
Division Chair Surgery
Division Chair Hospital Based
Division Chair Community Medicine
Cardiovascular
Allergy
Anesthesiology
Family Practice
Cardiothoracic
Endocrinology
Dermatology
Clinical Pathology
General Internal
Colon and Rectal
Gastroenterology
Neurology
Neuroradiology
Pediatrics
Emergency Medicine
General Internal
Psychiatry
Pathology
General
Hematology
Radiation Oncology
Gynecology
Infectious Disease
Radiology
Hepatobiliary
Nephrology
Neurosurgery
Oncology
Ophthalmology
Pulmonary
Orthopaedic
Rheumatology
Otolaryngology
Plastic
Surgical Critical Care
Urology
Vascular
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Major Initiatives

• Quality and safety
• Capital development
• Strategic growth
• Revenue cycle improvements
• Contracting improvements

• Leadership development
• Staff retention
• Attracting the best and brightest
• Information / medical technology
• Supply chain management

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Questions and Comments
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