Message from the CEO

January 2017

Tim Powers

2016 will forever be remembered as the year of transition and major changes to North Canyon Medical Center. Our financial performance and clinical metrics and dashboards continue to outpace all previous years. This is a testament to the providers that support our hospital as well as the care teams and clinical staff who take care of our patients and their families. We commenced posting our HCAHPS AND MBQIP Scores on our website this year to inform everyone coming to our site that we take quality and customer care in our facility seriously and are dedicated to providing a transparent environment at NCMC.

Major Capital Investments – This past year saw significant capital expenditures at our hospital. July of 2016 welcomed the opening of our fixed MRI at the hospital providing patients a higher quality of service and a much better experience both in availability and comfort than our previous mobile unit. December 19th we celebrated the opening our Medical Plaza encompassing an expansion of 33,000 square feet of space to consolidate on campus our clinical services previously located offsite, expansion of our Specialty Clinic and Wound Care Center as well as the addition of an Orthopedic and General Surgery clinic. The consolidation of all these services on our campus will create a better experience for our patients and allow our providers and clinicians access to more interactive and fluid consultation initiatives. During January 2017 the expansion of our Surgical Services area will be complete. This additional space allows for more adequate storage of specialized surgical equipment which is needed to support our expansion of our surgical services programs.

Debt Restructure – There has been much discussion regarding our relationship with St. Luke’s and their role as a member of Partners in Healthcare, Inc. Our hospital entered into a Management Agreement with St. Luke’s in 1998 and has enjoyed a mutually beneficial relationship since that time. In December 2007, Gooding County Memorial Hospital District and St. Luke’s Health System executed a Partnership Agreement forming the not-for-profit entity, Partners in Healthcare, Inc. With this new organization in place financing was secured to build a new facility and in March 2010 North Canyon Medical Center (“NCMC”) opened. St. Luke’s has been a strong ally and strategic partner for NCMC during this time and the financial and clinical performance of the hospital began to thrive. At the beginning of 2016 discussions began amongst our Board members about the possibility that St. Luke’s would exit the Partnership and allow NCMC to operate as an independent and autonomous hospital. Effective December 23, 2016 “The Membership Withdrawal Agreement” was executed between Gooding County Memorial Hospital District and St. Luke’s Health System which served as written notice of St. Luke’s withdrawal from Partners in Healthcare, Inc. and that St. Luke’s Directors on our Board resigned their directorships. Effective January 1, 2017, the name of the not-for-profit was changed to North Canyon Medical Center, Inc. a name more closely aligned with the independence of the hospital and its single owner/member, Gooding County Memorial Hospital District. This change allows our hospital to have an opportunity for a broader vision and to execute strategies specifically in the best interest of our hospital and the communities we serve. These are exciting and evolving times and I am honored to serve as your CEO.

Tim Powers

Chief Executive Officer (CEO)