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Transcript of Cost Management & Financial Performance December 14-15, 2015 Letters of reference are not required...
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Cost Management & Financial Performance
December 14-15, 2015
Letters of reference are not required at this time.
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Dallas, TexasPEOPLE QUALITY EFFICIENCY GROWTH
-200
-100
0
100
$200M
CMC operating margin
2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E
3%
-12%
2018 op. margin
Source: CHST Patient and Financial data; Scenario model
CHST OPERATING MARGIN RANGE WITHOUT INTERVENING ACTION(ASSUMES NO ACTIONS BY CHST/UTSW)
ForecastActual
2013 op margin: ~12%
Why are we here?
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Dallas, TexasPEOPLE QUALITY EFFICIENCY GROWTH
We offer programs in:
Asthma Management
Weight Management
Injury Prevention
Behavioral Health
The Health and Wellness Alliance
$65 million in direct charity care
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Large, Growing Market
• 1 of 9 children in U.S. live in Texas
Significant Community Needs
• 29% of Dallas County children live in poverty
• 2 of 3 children need financial assistance
• 7 out of every 10 public school children in Dallas County eligible for free and reduced-price meals
• 18% of Dallas County children are uninsured
• Only 31% of TX physicians accept new Medicaid patients (Down from 42% in 2010)
Significant Pediatric Medical Needs
• 50,000 children in N. Texas with asthma
• 36% of Dallas County kids are overweight
• or obese
• 28% of Dallas County children are malnourished
• 30% of toddlers not fully immunized
Invest for the future: To extend care into our community
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Dallas, TexasPEOPLE QUALITY EFFICIENCY GROWTHPrivileged and Confidential
Benchmarking
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Dallas, TexasPEOPLE QUALITY EFFICIENCY GROWTH
Why Benchmark?
5Privileged and Confidential
If you cannot measure it, you cannot improve it
- Lord Kelvin• Objectively identify opportunities:– staffing improvements– operational efficiencies – cost reduction opportunities
• Systematically develop and communicate:– business case for change– quantitative baseline analysis of existing processes,
technology and KPIs– reference point for implementing and managing change
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Dallas, TexasPEOPLE QUALITY EFFICIENCY GROWTH
Why Truven / ActionOI?
1. Scale: Largest healthcare network
• Database of more than 750 healthcare organizations
• Over 300 departments, ranging from Nursing and Surgery to Supply Chain and Community Outreach
2. Scope: Opportunities for population health, physician/clinic services
3. Timeliness: Quarterly data submissions & reports
4. Economy: History of quantifiable impact on performance improvement/ROI
• Advantage Community provides access to network of 22,000 professional to help identify best practices
5. Integrity: Robust data analysis & normalization
• Independent reviews & audits
6Privileged and Confidential
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Dallas, TexasPEOPLE QUALITY EFFICIENCY GROWTH
Understanding and Using Cost Information
7Privileged and Confidential
• Organizational view– Global, directional– Indirect expense
• Departmental view– Focused– Direct expense
• Foundational view– Value of balance– Opportunity for forecasting– Underscore our mission
Organizational
Departmental
Foundational
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Dallas, TexasPEOPLE QUALITY EFFICIENCY GROWTH
The Budgeting Process
8Privileged and Confidential
Volume Projections
Revenue Challenges
Expense Management
Flexibility & Speed
Challenges and Future Goals
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Dallas, TexasPEOPLE QUALITY EFFICIENCY GROWTH
Establish Methodology and Build Reports
Collaborate to Test
Establish Feedback loop and timelines
Continuous Review Cycle
Flexible Budget Reports
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Dallas, TexasPEOPLE QUALITY EFFICIENCY GROWTH
Conclusion