Compensation Committee 2017 Goals – Updated GMHC Board of Directors Compensation Committee January 9, 2017

2017 Overarching Direction Senior Leadership developed three overarching themes for the organization based on strategic direction and current position Excellence Engagement Financial Strength Grady will be known for excellence in care, education and quality outcomes demonstrated by safety, effectiveness, equity, efficiency, mortality and patient centeredness. Grady will engage the strengths and talents of our employees, physicians, Board members, volunteers and community resources to achieve our vision. Grady will maintain its financial strength to sustain the mission and invest in ongoing success.

Excellence Engagement Financial Strength Vision Core Identity Grady Health System will be the leading, public academic health system in the United States. Grady Health System will lead in the transformation of the health and well-being of the populations we serve, advancing health status through access to effective, innovative and efficient care and care coordination across the continuum. Organizational Goals Strategic Rationale Action Plan – Initiatives Measures Reduced Variation Reduce variability in patient care through development of a service line leadership structure. Establish non-teaching service to address growing volume and differentiated needs for complex discharge patients. Advance position, innovation and care delivery for key strategic services to drive Grady differentiation and share. Expand surgical capacity through new Ambulatory Surgery Center and clinic building. Grady will engage seniors for care across our continuum, retaining our current population as they age and aligning with Medicare Managed care organizations. Develop infrastructure for engagement, retention and improved continuity of care for high impact roles, i.e., nursing. Develop comprehensive patient engagement and care delivery model for high risk cohorts, integrating care teams, technology and data analytics to drive improved outcomes. Develop new access points for greater population engagement and link risk stratification programs to identify high risk patients. Optimize information sharing across community service providers and post acute providers. Expand capacity to skilled nursing and rehab beds for post acute care. Prepare for new payment methodologies (i.e., bundled payments). Vizient Quality and Accountability Composite Score Safety Efficiency Effectiveness Equity Patient-centeredness Mortality HCAPHS CG-CAPHS Ambulatory Measures Patient Outcomes Demonstration of Value Grady will be known for excellence in care and quality outcomes demonstrated by safety, effectiveness, equity, efficiency, mortality and patient centeredness. Grady will engage the strengths and talents of our employees, physicians, Board members, volunteers and community resources to achieve our vision. Grady will maintain its financial strength to sustain the mission and invest in ongoing success. Care Delivery System Excellence Adaptability Shared Goals and Accountability Care Coordination No Harm Stakeholder Engagement Engagement Market availability of key clinical roles 2. Voluntary Turnover Engagement Vacancies Just Culture Healthy Employees 3. Operating Margin FTE/AOB Cost/AOB Adjusted, insured discharges Operational improvement initiatives CMI Financial Sustainability Investments in Future Success Value Based Purchasing Financial Strength Shared Savings Community Benefit Planning – Health Status Improvements and Community Collaborations Master Facility Planning – Ensure facility support and capacity to achieve organizational goals

Organizational Goals Excellence goals will be achieved through implementation of the strategies related to reduced variability, service line development, the non-teaching/hospital medicine program and infrastructure Excellence Activity Measured 2014 2015 2016 Current 1. Achieve hospital rank for mortality of 15 or lower as measured by the Vizient ranking of member hospitals for 3rd quarter 2017. Measures observed/expected mortality focused on Core service lines. 94 39 14 8 2. Achieve hospital rank for efficiency of 85 or lower as measured by the Vizient ranking of member hospitals for 3rd quarter 2017. Measures observed/expected length of stay and direct cost. 59 53 93 91 3. Achieve hospital rank for effectiveness of 85 or lower as measured by the Vizient ranking of member hospitals for 3rd quarter 2017. Measures re-admissions, excess days and core measures. ED Median Times Stroke Venous thromboembolism 88 99 98 92

Organizational Goals Engagement goals will be achieved through development of infrastructure, leadership training, Just Culture and High Reliability initiatives Engagement Activity Measured 2013 2014 2015 2016 YTD 4. By Q4 2017, decrease the turnover rate of employees who voluntarily terminate from the organization (Annualized Voluntary Turnover) from xx% in 2016 to 14.80% as measured by HR Statistics reports and benchmarked with PwC Saratoga Institute Hospital Consortium's national average for health care sector. Measures number of people who leave the organization. A reduced number will support reduced variability, improved employee engagement and reduced recruitment expense. n/a 16.98% 17.22%

Organizational Goals Financial strength goals will be achieved through service line growth, improved collaboration with partners along the care continuum and ongoing focus on efficiencies in care delivery models Financial Strength Activity Measured 2013 2014 2015 2016 YTD 5. Grady will achieve a total operating margin of 2.1% by December 31st 2017. Measures the financial performance for the organization, including a positive operating margin and funds to support ongoing capital investments. 2.2% 4.4% 5.8% 4.2%