LBJ SCHOOL OF PUBLIC AFFAIRSFEBRUARY 2010

PRESENTED BY: ANNE P. MESSBARGER-EGUIA

CHRISTUS Health International Ministries

Introduction to CHRISTUS Health

Catholic faith-based health system Located in 60 cities in Texas, Arkansas, Iowa, Louisiana,

Missouri, Georgia, New Mexico and Utah in the U.S. and Chihuahua, Coahuila, Nuevo Leon, Puebla, San Luis Potosi and Tamaulipas in Mexico

Almost 350 medical facilities (31 acute care hospitals)

5,400+ staffed beds 175 clinics and outpatient centers 30,000+ employees 9,000 physicians $4.5 billion total assets

Mission and Vision

Mission: To extend the healing ministry of Jesus Christ

Vision:CHRISTUS Health, a Catholic health ministry, will be

a leader, a partner and an advocate in the creation of innovative health and wellness solutions that

improve the lives of individuals and communities so that all may experience God’s healing presence and

love.

CHRISTUS Health Locations

Long Term Strategy

Realign the Portfolio to better align with needs of the community and to create stronger more stable structures

Recreate CHRISTUS Health for the Base of the Pyramid population

Develop aggregator models in order to provide seamlessly integrated services to address the needs and expectations of our customers

Strengthen and expand our international ministry

Harness the new power of technology

Why International?

Excellent opportunity for expansion of our ministry

Strong partnership model (low risk) Less regulated/ham-strung environment Access to excellent technologyInnovation lab

Our Presence in Mexico

Our Presence in Mexico

7 Hospitals 7 Large Indigent Care ClinicsNon-Hospital Services

30 Convenient Clinics The most sophisticated ambulance service in

Monterrey 2 Rehab Hospitals Behavioral health/addictionservcies 2 hyperbaric chambers

Seven Acute Care Hospitals

Monterrey: CM Hospital Alta Especialidad, Monterrey CM Hospital Conchita, Monterrey CM Hospital Sur, Monterrey

CM Hospital Saltillo CM Hospital Del Parque, ChihuahuaCM Hospital ReynosaCM Hospital UPAEP, Puebla

Acute Care Capacity

Beds 496ICU Beds 45NICU Beds 57Intermediate Care Beds 26Surgical Suites 33Hemonc Suites 4Trauma Rooms 9Delivery Rooms 12C-Section Rooms 15

Seven Indigent Care Clinics

Mission-basedHigh-quality low-cost medical services.Transformative for communities we serveWe serve more than 140,000 people annuallyLocations:

Monterrey (2) Huasteca Potosina Saltillo Chihuahua

Thirty Convenient Clinics

Extensive primary care servcies.Convenient care at low price. Located in Monterrey, Saltillo, Chihuahua &

Reynosa.Rapid growth strategyVery strategic role in our portfolio expansion

Medical Staff

• Excellent, proven medical staff, many of whom have been trained in US or Europe

• Formal credentialing process and re-credentialing (every three years)

• Medical leadership in 14 committees (85 members) by specialty and ethics that report to the exectuive.

Our Patients

We care for more than 800,000 patients every year

Consistently high patient satisfaction scoresWe have agreements with nearly every major

insurance company in the countryMedical travel/tourism services

Accreditations and Certifications

Clinical Quality Outcomes

See Handout

Medical Travel Strategy

Currently minor component of strategy

Much potential for growth

Lacking expertise

Avg 6 US patients/day Bariatrics cardiology

Cost Comparison Total Medical Travel Caser Rate (Facility & Physician)

Estimated Travel Cost (Pt & Companion)

Comparable Fees Paid in US by Insurer

Savings in USD

Savings as a % of Current Cost

Orthopedic SurgeryKnee Arthroscopic - Meniscetomy (Unilateral) $ 3,041 $ 1,170 $ 6,315 $ 2,104 33%

Total Knee Replacement (unilateral) $ 7,495 $ 2,275 $ 21,639 $11,869 55%

Total Hip Replacement (unilateral) $ 11,218 $ 2,360 $ 22,108 $ 8,530 $ 0

General SurgeryLaparoscopic Cholecystectomy $ 3,757 $ 1,340 $ 7,316 $ 2,219 30%Inguinal Hernia $ 2,300 $ 1,255 $ 5,792 $ 2,237 39%

Obesity SurgeryLaparoscopic Adjustable Band $ 8,402 $ 1,340 $ 14,000 $ 4,258 30%

Gynecology SurgeryAbdominal Hysterectomy (open) $ 3,977 $ 1,680 $ 14,719 $ 9,062 62%

Cardiology and Cardiac SurgeryAortic Valve Replacement $ 22,407 $ 2,275 $ 49,313 $24,631 50%Angioplasty (1 Medicated Stent) $ 14,597 $ 1,340 $ 24,843 $ 8,906 36%

OpthalmologyPhacoemulsification (multifocal lens) Cataracts $ 1,730 $ 1,170 $ 6,851 $ 3,951 58%

Opportunities/Challenges

Opportunities: Potential to grow medical travel business significantly Good basic infrastructure for continuity of care US-based system is less “foreign” to medical tourists Excellent quality/service indicators and awards

Challenges Current strategic priority is in local market growth and expansion Need to build volume in specific procedures in target facilities in order to

ensure quality US physician resistance – Local market politics CM lacking in experience in Medical Travel model Many questionable players in the market Border violence is posing a significant threat

Reynosa Other markets

Medical Travel Target in Future

Funded uninsuredHigh deductible populationPrivately insured – via contracts with insurerOther