Hospital Rehab Management

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1 Why Heritage Healthcare as Your Rehab Delivery Partner? Hospitals are seeking collaborative partner relationships to better position them for the current environment, as well as tomorrow s increasing challenges. This strategy allows hospitals to focus on their core business, while benefiting from partners with proven historical success. Many acute care departments are being outsourced to specialist organizations, while still remaining completely under the control of the hospital. Some of these outsourced departments include on-premise laboratory, pharmacy, dietary, emergency room, house-keeping/maintenance, and others. Many hospitals are especially seeking rehabilitation care delivery partners. Partnering with specialist companies offers hospitals peace of mind and measurable improvements that better support their strategic growth. Some of these benefits include: Enhancements in clinical programming & outcomes; Revenue growth through program development & enhanced marketing; Cost savings through increased efficiencies; Savings on infrastructure & technology; Access to specialty programs & educational tools; Department specific expertise in compensation & staff management; Faster & better overall service delivery; and Reduced compliance risk. Heritage Healthcare is proud to serve the therapy needs of 475+ healthcare partners in more than 25 states. Our proven clinical models and operational, administrative, regulatory, and financial expertise provide sustainable, positive bottom line results for our partners while enhancing compliance. In addition, our strategic approach and healthcare reform expertise ensures that our partners are well positioned for both today s environment and what lies ahead. Staffing & Recruitment Our permanent and temporary staffing solutions ensure reliable, timely access to qualified, passionate, and motivated therapists. We understand your business and how to attract, hire, retain, and continually educate quality therapy professionals. Our priority is to deliver optimal care that results in enhanced patient outcomes, fostering increased patient, physician, and staff satisfaction. Expertise Our clinical operations team has a unique ability to effectively manage the clinical, regulatory, operational, and financial aspects of therapy. They provide targeted and customized real-time management support that enables each practice to achieve optimum success.

2 Outcomes Make the Difference We focus on ongoing metrics and reporting for each service line. Our sophisticated reporting system, which is interfaced with several EMRs, captures outcome data that is readily available for use in: Engaging physicians and other referral sources using outcome data to articulate clinical efficacy; Quality improvement & benchmarking; HMO relationship management; ACO/Bundled Payment Initiatives; Rehab program development & implementation; and Marketing & census development. Compliance & Reimbursement Expertise Our Chief Compliance Officer is one of only a handful of individuals in the country who is Certified in Healthcare Compliance (CHC). This depth of experience lends additional expertise to our compliance programming, carried out by a diverse group of clinical and corporate compliance specialists. Heritage Healthcare s approach is proactive, focusing resources on minimizing risk through comprehensive policies and procedures, as well as intense, ongoing auditing and review of documentation, reimbursement, and charge structures to ensure operational integrity. Through involvement in CMS payment reform initiatives and national therapy associations, Heritage Healthcare remains on the cutting edge of regulatory changes. Our subsequent ability to rapidly integrate practice management enhancements helps clients remain ahead of the curve and assures compliance with regulatory requirements. Flexible Partnering Models For nearly two decades, Heritage Healthcare has offered partners flexible relationship models. From full service contract physical, occupational, speech therapy, and MDS services coupled with fully outsourced models to à la carte management and consultative services, Heritage Healthcare offers industry-leading expertise and a choice of proven models that improve clinical programming, outcomes, and profitability. Our Pledge to Service Excellence We strive to be the premier rehabilitation company through exceptional clinical outcomes, incomparable compliance, advanced technology solutions, superior management methods, and extraordinary customer service. We are committed to excellence and developing long-term, strategic partnerships that deliver patient-centered services that consistently surpass the expectations of those we serve. Contact us today to learn more about our hospital therapy management program and how we can support your success!

3 What to Expect from Heritage Healthcare as Your Rehab Delivery Partner We reduce your risk Shift fixed costs to variable costs (your only fees are for billable reimbursement services provided) We improve therapist productivity & patient care time Optimize staffing ratios and overall efficiency We increase patient volume & market share Elevate to appropriate procedures per visit, extended operating hours, appointment confirmations We provide specialized therapists & operational teams Inpatient, Outpatient, Short-Term Rehab/TCU, IRF, Skilled Nursing/Long-Term True Partnering Reimbursement accountability Real-time management of key operating data Marketing support Referral development Business planning JCAHO and CARF support, assistance, & participation Innovative Clinical Programs Spinal Rehabilitation Pain Fibromyalgia Pelvic Muscle Dysfunction Continence Improvement Upper Extremity Rehab Lower Extremity Rehab Total Joint Replacement Balance & Falls Edema Osteoporosis Contracture Wound Industrial Rehab... and many more Working Closely With You Experienced management team works with your director Formal business planning & specialty program development Compliance audits, staff education, & CQI planning Billing, coding, & reimbursement expertise Business management reports Quality patient outcomes A Partnership that works! Financial risk sharing Relationship building Product line development Operational support Two decades servicing our industry Patient and partner satisfaction Education & compliance services Shared & aggressive marketing/promotion

4 How does Your Hospital Measure Rehab Outcomes? Clinical performance has never been more important! Implementing state-of-the-art rehab programs, protocols, philosophies, & technology Insisting upon specific rehab delivery for inpatient, IRF, outpatient, skilled nursing, other Achieving highest quality of life results for our valued patients Patient & family satisfaction Engaging physicians & referral sources Assuring compliance with all regulatory requirements Providing expedient & accurate response to all inquiries, ADRs, & claim denials Promoting appropriate lengths of stay & patient care transitions Reducing exposure & potential for hospital readmissions Establishing collaborative relationships to ensure optimum continuum of care CASE STUDY: OUTPATIENT PRODUCT LINE GROWTH (268 bed Suburban Hospital) $7,000, $6,000,000 Units/Patients $5,000,000 $4,000,000 $3, $2,000,000 Revenue $1,000,000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 $0 Production Units Patients Treated Billed Revenue 161% growth in Billable Units 114% increase in OP caseload 204% increase in OP revenue Shift your Therapy Program from a Cost Center to a Profit Center! Is your rehab operation a cost or profit center? Heritage Healthcare s clinical and compliance expertise coupled with state-of-the-art operational strategies, are proven to yield a positive impact to the bottom line. On the next page are examples of how our hospital management model contributes to enhanced financial performance.

5 Financial performance has never been more revealing! Increase therapist efficiency by 10%-25% Contain and/or reduce rehab operational costs Enhance outpatient programming resulting in increased volume Shift today s fixed costs (therapist payroll regardless of census, caseload, & treatments provided) to a variable cost model with Heritage where hospital pays only for reimbursable services Support clinical operations across all venues via rehab clinical specialists Assign dedicated PPS/RUGS operational management & trained therapist specialists to sub-acute operations (short-term & long-term care) Assign dedicated IRF operational management & trained therapist specialists to inpatient rehab Assign dedicated outpatient operational management & trained therapist specialists to outpatient Specialized claim adjudication & billing support team HOSPITAL-OWNED SNF CASE STUDY: HERITAGE S IMPACT IN YEAR ONE High Volume Orthopedic and Complex Medical Rehabilitation Program RUG MIX COMPARISON L% M% H% VH% With Heritage Pre Heritage UH% Productivity 0% 20% 40% 60% 80% 100% NET MARGIN IMPACT Net With Heritage Pre Heritage $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Heritage Healthcare s management resulted in a 5% increase in therapy net margin or $7.9M in the first year. Contact us today to learn more about our hospital therapy management program and how we can support your success!