CONWAY REGIONAL HEALTH SYSTEM

Transcription

1 CONWAY REGIONAL HEALTH SYSTEM HFMA Capital Conference 2015 Jim Lambert, FACHE and Steve Rose, FHFMA

2 MISSION

3 VISION

4 VALUES Integrity We say what we mean and we mean what we say Compassion We show concern and compassion for others Accountability We are answerable for our actions and decisions Respect p We care about the well being, dignity and uniqueness of everyone Excellence We deliver our best every day and encourage innovation to continuously improve

5 CONWAY REGIONAL HEALTH SYSTEM Conway Regional Medical Center, Inc. d/b/a Conway Regional Health System IRS 501C(3) Exempt 50% Member 61.8% Member 100% Stockholder Sole Member Conway Regional Physician Hospital Organization (Non-profit Taxable) Conway Regional Rehabilitation Hospital, LLC Institutional Services Corporation (ISC) (Profit Taxable) Conway Regional Health Foundation Inc. 501C(3) Exempt Physicians 50% Physicians 38.2%

6 CONWAY REGIONAL AT A GLANCE 154 Bed Acute Care Medical Center 26 Bed Rehabilitation Hospital Ambulatory Surgery Department Imaging Center Health and Fitness Center over 8,000 members Six Clinics: Conway, Mayflower, Greenbrier, Clinton, Vilonia and After Hours Clinic Over 1,200Employees and over 120Volunteers Over 130 Physicians on Active Medical Staff Strategic Affiliation with CHI St. Vincent Ldb Led by a volunteer Board of Directors who are purposedriven, not profit driven

7 Conway Regional s Service Area

8 Market Share by Service Line Percent Market Sha are 80% 70% 60% 50% 40% 30% 20% 10% 0% Primary & Secondary Service Area Data Source: AR Department of Health

9 Market Share Primary, Secondary and Total 60.0% 50.0% 40.0% 30.0% Primary Secondary Total 20.0% 0% 10.0% 0.0%

10 Awards & Recognition Healthgrades Five Star Rating Total Knee Replacement ( ) Five Star Rti Rating for Hip Fracture Treatment t( ) Number 1 in Arkansas for Cardiac Surgery (2012, 2013) CareChex Number 1 in Arkansas for Coronary Bypass Surgery (2013) Number 1 in Arkansas for Major Cardiac Surgery y( (2013) Top 10% in Nation for Women s Health (2015) Top 10% in Nation for Patient Safety General Surgery & Coronary Bypass Surgery (2013)

11 Recipient of the 2014 Arkansas Governor s Quality Award First Acute Care Hospital in Little Rock MSA First organization of First organization of any industry in five county market area

12 Conway Regional Health System Strategic Plan with Measures of Success

13 Strategic Plan with Measures of Success Growth Conway Regional Health System will work with the community to strategically grow services and facilities to meet the needs of the community. Measures of Success: Grow inpatient market share by 2% per year in primary and secondary service area. Grow outpatient volumes by 3% per year. Grow non core service lines/diversification of revenue/income Service Conway Regional Health System will create a culture of service excellence for all patient care areas that consistently exceeds customers expectations. Measures of Success: Top 10% achieved for overall patient care experience for all patient areas within the next 3 years. 4% increase in two years in the most preferred hospital from the image survey

14 CHI/St. Vincent Alliance How does each organization benefit from the relationship? CHI St. Vincent Conway Regional Regional relationship with well reputed system Access to tertiary/ quaternary patients Expanded AHN relevance with Conway PHO Improved market relevance $3M $7M in shared savings opportunity Expanded regional primary care presence Catalyst to expanded statewide network Enhanced specialty coverage Availability of specialty coverage Strategic partner in a new competitive environment Addition of MSO offerings to PHO Access to additional patient populations through the AHN

15 Strategic Plan with Measures of Success Finance Conway Regional Health lhsystem will maintain i a financially i strong community based regional health system that will meet the needs of the community now and into the future. Measures of Success: 2.5% Operating Margin 4% Total Margin S&P benchmark at Level A Rating System People Conway Regional Health System will be the health system of choice for employees, physicians and volunteers. Measures of Success: Improve employee satisfaction and engagement Press Ganey Partnership mean score 69.9 to 80.0 (90th percentile) by Improve voluntary employee turnover from the current rate of 13% to less than 10% by Improve physician satisfaction survey mean score from the current mean score of to 81.0 by 2015.

16 Strategic Plan with Measures of Success Quality Conway Regional Health System will be recognized as a center of excellence in quality and patient safety. Measures of Success: Achieve and sustain scores in the top 10% for all value Based Purchasing Metrics. Demonstrate 30% reduction in all cause harm. Implement mortality reduction strategies that will drive overall hospital mortality to the ADN expected rate. Achieve a 30% or greater score in best reputation for quality care on the 2016 image survey. Achieve scores at or above the national average for all composites of the Patient Safety Culture Survey.

17 Mortality Rates 6.00 (excluding newborns/hospice) Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan

18 Overall Mortality Index ME ME ME ME ME ME ME ME ME ME ME ME ME Overall Mortality Index Index Benchmark

19 CAUTI Rate # CAUTI/ /Catheter Line Days x 1000 Pt days Years CAUTI Rate Benchmark Goal Data Source: NHSN; Benchmark represents 50th percentile

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21 Strategic Capital Projects Completed Purchase new da Vinci surgical robot Fast track urgent care Renovation of Education, Accounting and Patient Financial Services Departments 2015 Capital Projects Patient tower renovation Emergency department renovation Renovations of all lobbies and waiting areas

22 Financial Information

23 Bond Rating Standard and Poors BBB+

24 VOLUME Acute Admissions i 8,047 7,602 7,931 8,060 8,185 7,871 7,899 Total Surgeries (IP, OP & ASD) 11,191 9,408 11,478 11,879 11,815 11,916 12,531 Deliveries 1,820 1,748 1,746 1,834 1,828 1,794 1,807 Emergency Dept Visits 42,188 42,372 40,408 40,669 39,397 39,707 42,055 Outpatients 58,278 59,684 60,139 63,108 60,286 59,904 60,947 Source: Internal, Unconsolidated Numbers

25 Key Performance Indicators INDICATOR FY 2014 FY 2013 Profitability Income ($) $4,229,567 $770,831 Operating Margin (%) 3% 1% Net Income (%) 5% 4% Total EBITDA ($) $18,590,244 $18,623,721 Excess Margin (%) 5% 4% Key Credit Ratios Days Cash on Hand Debt to Capitalization (%) 24% 26% Unrestricted Cash to Debt (%) 210% 186% Debt Service Coverage Ratio (x) Total Capital Expenditures as % of Total Operating Rev (%) 4% 5% Other Days in Accounts Receivable Average Age of Plant (#)

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27 Operating and Total Margins Millions * Op Margin Total Margin Op Marg % 42% 4.2% 19% 1.9% 06% 0.6% 30% 3.0% Total Marg% 4.8% 1.1% 4.3% 4.7% 60% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1.0% 2.0% 20% * 2014 data is unaudited

28 Salaries, Benefits and Wages Millions * Salaries Op Rev % of Op Rev 43.6% 45.4% 44.3% 43.4% 50.0% 49.0% 48.0% 47.0% 46.0% 45.0% 44.0% 43.0% 42.0% 41.0% 40.0% * 2014 data is unaudited

29 Uncompensated Care % % illions M % 4.00% % * Millions (at cost) % of Op Rev 7.10% 8.20% 7.70% 5.80% 0.00% * 2014 data is unaudited

30 2015 And Beyond Prepare for increased competition Mj Major updates dt to facilities Physician integration strategies directly and through PHO Cost reduction strategies internal initiatives and working with third party Direct contracting with employers

31 Questions???

32 Thank you!