MEMO

April 5, 2018

Dear Colleague:

This past week we announced the St. Joseph’s Health sponsorship of Lakeview Amphitheater. Because of the
contract approval process we were not able to provide you with detailed information ahead of the announcement
as we would have preferred to do. We have been getting some great questions from our colleagues about this
investment. I thought it would be best to provide the answers to the most common questions we have been
receiving.

Q: Why did St. Joseph’s Health invest in the Name-In-Title sponsorship of the Lakeview Amphitheater?

A: One of the main reasons we decided to take this step was due to feedback from our colleagues and
community members who have said that St. Joseph’s Health fails to get the word out to our community about
who we are, what we do, and our accomplishments. Name recognition is part of “who we are” and studies have
shown that our colleagues and community members were right: St. Joseph’s Health was not recognized as a
leader in services where we actually were doing better than our competitors. This, in turn had a negative impact
on the volume of patients we were able to serve, job growth for our colleagues, and financial outcomes. In other
words, we were not as effective in achieving our mission as we should have been.

The Lakeview Amphitheater opportunity is one way to increase name recognition and becoming foremost in the
minds of our community members for health care. This is in conjunction with other marketing media we use such
as TV commercials, mall banners, etc. Improved name recognition will allow us to serve more people, achieve
our mission effectively, and have more income to provide additional jobs and job security. It is a small marketing
investment for significant future dividends.

Q: With the announcement of St. Joseph’s sponsoring of the Lakeview Amphitheater, we are wondering
how it fulfills the Mission of Trinity Health and the values of a Catholic based institution in sponsoring a
venue that books some anti-Christian bands and encourages drinking, partying, etc.?

A: Our mission calls us to be a “… transforming healing presence within our community.” Our community is not
limited to those locations or community members whose activities and values are in complete alignment with our
own. In His ministry, Christ spent a great deal of time teaching in places which were not ideal for His Word. His
message and ministry was one of inclusiveness and invitation, while at the same time not condoning behaviors
which were not consistent with the gospel. Christ reached out to people who were less likely to seek him, and in
doing this made himself known to them. As such, He went to them wherever they were and no matter who they
were.

In this way, St. Joseph’s Health must have a presence in a variety of places and through different media so
people know us and our ministry. Lakeview Amphitheater provides the opportunity to educate attendees about
us. In accordance with our values, we are committed to serving all of our community. We cannot do that if they
do not know of us.

Just as other marketing media we use such as TV and radio, we are not able to control content or the ideas of
the performers (or what they and their fans would consider a form of artistic expression). Similar to other large
entertainment venues in the region (eg. Dome / Crouse and War Memorial / Upstate), some people may choose
to drink and “party” at those events, but neither St. Joseph’s Health nor the County endorse inappropriate or
illegal behavior.
Q: Why is money being spent on this instead of giving it to staff, buying equipment or building new
services?

A: We are committing to this opportunity without sacrificing our investments into our colleagues, equipment, or
growth.

We will be paying about $300,000 per year for this naming opportunity. This compares to:

- $382,900,000 in total annual payroll and benefits

- $8,000,000 in annual raises and market adjustments to our eligible colleagues

As such, St. Joseph’s Health has invested much more in competitive salaries and benefits than what is being
spent on this marketing opportunity.

In terms of equipment and capital improvements to improve our services, about $46,000,000 has been invested
this year to improve services to our patients. Just a few examples include:

- Cardiovascular Center of Excellence opening later this year.

- Breast Care & Surgery renovation
- NICU relocation and renovation
- Pharmacy renovation
- Helipad

Money allocated for marketing is separate from other operational expenses and capital improvements. Our total
advertising budget is only 0.38 percent of operating revenue of $700 million annually. This is lower than the
average Trinity Health ministry marketing budget and significantly lower than the industry average of 2 to 3
percent. One of the contributing factors to poor financial performance from 2013-2016 was due in part to
insufficient marketing and name recognition. We were essentially a best kept healthcare secret in Central New
York and were paying the price for keeping it that way!

We are reestablishing our brand in a market that has been dominated in advertising and marketing by Crouse
and Upstate and, more recently, national brand institutions like Cleveland Clinic and Roswell. In order to remain
relevant and grow our market share we must be well recognized as the leading provider of quality care in the
region. Exclusive naming opportunities don’t come around that often, so it was important that we use some of
our marketing dollars to secure the rights and prevent a competitor from gaining more market share.

In sum, we must change, try different approaches, and innovate. It is often not easy to change and can be
uncomfortable, but if we want to thrive, change we must.

Q: Why the Amphitheater and not another venue?

A: Over 180,000 people from across the region attend shows at the Amphitheater annually—57 percent of whom
are female, and 83 percent are between the ages of 18 and 54. This is a key demographic for us to reach in
terms of system awareness, women’s health initiatives and staff recruitment. Most importantly, it is the most
important group of people we must bring into St. Joseph’s Health to ensure future growth. Other venues do not
offer this same opportunity or potential and some are at least twice as expensive.

Q: What can we expect to see at the venue when the new season begins?

A: St. Joseph’s Health will have signage, video graphics, banners and posters displayed throughout the venue,
on highway signs and ticket stubs. We will also take advantage of traditional media to help drive brand
awareness throughout the market and associate St. Joseph’s Health with top tier artists. Exposure will include
promoter-driven radio, television, print, outdoor, digital and social media. We will be given complimentary tickets

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to use for colleague reward and recognition and hold two events per year. We are building our future to have a
strong presence and brand awareness that goes well beyond Syracuse, and the regional draw of this venue
holds a great deal of potential for us.

I hope that this adds some information and clarity as to this important initiative which is intended to reach more of
our community, increase name recognition, improve job opportunities and security, and allow St. Joseph’s Health
to continue its growth as Central New York’s most comprehensive health system.

As always, I welcome your thoughts and questions and am grateful for feedback. I continue to encourage direct
dialogue because asking someone who knows the answers will result in better information than social media,
rumors or random commentary! As always, I encourage openness and want our colleagues comfortable to bring
forth their thoughts and ideas responsibly, through appropriate channels, and without fear. For truly this is our St.
Joseph’s Health!

Sincerely,

Leslie Paul Luke

President and Chief Executive Officer