aNoulyesTABLE OF CONTENTS > DESIGNING FOR VALUE 3 YEAR IN REVIEW—QUARTER 1 YEAR IN REVIEW QUARTER 2 8 YEAR IN REVIEW-—QUAR 3 YEAR IN REVIEW—QUARTER 4 7 SCRIPPS HEALTH AT A GLANCE a LEADERSHIP 2 AWARDS & RECOGNITION 2Letter from the CEO cost reduction and quality improvement. ‘These two worthwhile goals can be at opposite ends ofa corporate spectrum, But that not the case at Scripps Health, As we continued o reduce costs and imrove health cae acces in 2014, we id 50 2 way that maintained our high levels of quality cre and, many times, improved upon trem. (ur focus the lst several years hasbeen on reducing variation in practice and proces, an approach that has reduced eur costs by neary $350 milion. When prysiians an sta agree on common equipment and standard procedures across the system, we operate more ecient and see a reduction in unnecessary supplies and resources ‘When it comes ta delivering qualty cae, thie same reduction in variation means identifying best cic practices from arrang all our locations anc spreacng them across our entre hein stern. This resus in higher quality patent care and beter outcomes for our patents, In this annual report for 2014, you wil rec lot about what we have been dong, vinere we have been srising, what we have accomplsned aver he past year These ate a sgnficant achievements, especialy at te wen the nations healt care ode continues to evolve. For an integrated health care system ke Séripas to thre in 2014 and beyond, we need to be accessoe, affordable and a qualty choc for everyone wna chages to tust us with ther care | vant you 1 know the near 17,000 employees and physicians at Serops understand ths, and we are ‘working every day to ensure Scripps isthe healt care system of choice in San Diego and beyond; from our highly skies Board of Turtes that spencs countess hours guiding our erganstion, so ar front-ine staff 2nd physicans working side-by-side to adacess and improve every aspect of car and support we aravide. (Our goa! and ther goa, 0 bring the highest value o ow patients, to cate fr each person as we would ‘want abe caved or ourselves, to help those whe come to. get wel and stay healthy for ifetime We do this by working with you and by wotking together At Scipas Heath, quality cost and value ane intertwine ts wat we achieve every dy Wd he Chri Van Gonder, FACHE Scrip President and C=O