Vision Statement
A Critical Time When Opportunity and Action Intersect

Value Statement
Our Purpose is: To proactively monitor the changing healthcare environment and react accordingly to meet the needs of the Kairos members.

Our Core Values are to:

• Deliver superior quality service to our members
• Effectively meet the needs of our members
• Act with integrity and respect in all that we do
• Work together as a team to achieve our member's objectives

The History of Kairos Health Systems, Inc.
Formation
In 1994, Lutheran Social Services - East Region, Lutheran Social Services of South Central PA, and Tressler Lutheran Services invited other agencies to discuss the need to respond to a rapidly changing health care environment. The Pennsylvania Lutheran Agency Network held several meetings to consider the development of a statewide Lutheran organization capable of competing in a managed care environment. An invitation to all Pennsylvania Lutheran Social Ministry organizations resulted in the commitment of five agencies willing to devote significant staff time and financial resources to pursue a joint venture. Allegheny Lutheran Social Ministries, Lutheran Social Services - East Region, Lutheran Social Services of South Central PA, The Lutheran Home at Topton, and Tressler Lutheran Services initiated a committee to formalize a proposal.

The Managed Care Committee studied the industry and regional health care environment, analyzed competitive strategies, and educated agency staff and boards of directors about managed care and new directions in health care. In June 1995, the Managed Care Committee submitted its recommendations to five agencies' board of directors. The group recommended that a taxable entity be created which would initially be capitalized through the purchase of stock in equal share by the five agencies. Flexibility of structure, business definition, and direction were emphasized to allow the new venture to position itself effectively in the rapidly changing environment. The Board of Directors reviewed draft documents including subscription, stockholders agreements, corporate by-laws, and a business concept paper. By October 1, 1995, four of the agencies voted to commit themselves to the creation of Kairos Health Systems.

Incorporation
Kairos Health Systems, Inc. was incorporated in the state of Delaware in November 1995. The Board of Directors was composed of one representative from each of the 4 Class A stockholder agencies. In April of 1996, Kairos began its functional operation.

In its first several months, Kairos received favorable market attention. Relationships were established with the managed care organizations (MCOs). Initial education sessions with service site staff were conducted to provide orientation to the procedures of the MCOs. Vendors of health care products, ancillary service, and health care-related services expressed interest in Kairos and lead to the development of the Kairos Group Purchasing Organization.

This interest also prompted Kairos to explore other types of collaborative relationships with consulting groups, research firms, and other alliances. Opportunities were cultivated to allow Kairos to bring the expertise of the system and its stockholders into the marketplace, known today as ExpertLinks.

In the fall of 1996, Kairos expanded the total Class A Stockholders to six. The addition of these stockholders allowed Kairos to complete the development of a comprehensive and integrated information system for Kairos. This information system was used to help facilitate the care management program of Kairos Health Systems.

By 2002, Kairos Health System had grown to 19 stockholders and had opened membership on a limited basis to Contracted Members.

Reorganization
On August 17, 2001 the Board of Directors met to discuss the current environment of Kairos and the need to meet the changing requirements of its stockholders. The Board decided to expand the role of Kairos in the marketplace and become more competitive. This decision to restructure and adopt a more structured agenda included the following:

1. Negotiating managed care contracts and enhancing and maintaining relationships with managed care providers.
2. Credentialing facilities as needed to participate in managed care contracts.
3. Training facility based staff for care management purposes.
4. Fostering the relationship with Evercare for Kairos members.
5. Continuing group purchasing contracts and EXPERTLINKS to the extent that they underwrite the core business of Kairos (1-4).

Today
Kairos Health Systems, Inc. continues to follow the outline set forth in 2001. Currently, Kairos has expanded to 19 Shareholders and consists of approximately 92 participating members. The membership includes Long-Term Care, Home Health, and Hospice providers. Several different service options are available for participating members.

Kairos' primary responsibility is to proactively research and monitor the health care environment to address the needs of its stockholders and members. Kairos acts as a resource to its members on insurance related matters, on changes from the Centers for Medicare and Medicaid, and on other services affecting the long-term care industry.