This presentation may contain statements and information that could be considered “forward-looking statements.” Forward-looking statements are not historical facts but instead represent only our beliefs regarding future events, many of which are inherently uncertain and outside our control. Forward-looking statements include, among other things, statements regarding our future financial performance, business prospects, future growth and operating strategies, objectives and results.
Actual results, performance or developments could differ materially from those expressed or implied by these forward-looking statements. With the exception of fiscal year-end information included in our audited financial statements, the information we are presenting is unaudited. Except as required by law, we undertake no duty to update the contents of this presentation after today.
Forward Looking Statements
1
Terry ShawPresident & CEO
J.P. Morgan Healthcare ConferenceJanuary 12, 2021
2
3
82.7%
67.5%‘20 AA Goal
92.9%
64.8%
81%‘20 AA Goal
56.7%‘20 AA Goal
75%‘18 Baseline
Nov ‘20
90%‘18 Baseline
Nov ‘20
63%‘18 Baseline
Q3 ‘20
Brand Aided AwarenessTampa Bay Greater Orlando Kansas City
4
1973 AdventHealth established
50
80,000+ Team members
5.5 million+ Patients served annually
11 Skilled nursing facilities
18 Home health and hospice agencies
2,289 Employed physicians
61 Urgent care facilities
19 Offsite EDs
Hospital campuses operated in nine states
$12.5B Revenue
5
6
BodyMindSpirit
Whole-Personcare
Driven by our mission of providing wholistic care to all people, AdventHealth will be known for our preeminent, faith-based, consumer-focused clinical care.
7
Vision 2030BodyMindSpiritWhole-PersonCare
8
Body Mind
Spirit
Whole-PersonCare
9
19 14 9 11
12 19 26 23
05
10152025303540
2017 2018 2019 Jan-Sep'20
# of
Hos
pita
ls
< Top Quartile Top QuartileSource: Premier Quality Advisor
Premier All Adult Observed/Expected Mortality Trend
10
Leapfrog Safety Grade
Goal: Grade A
A
B
C
D
F
CMS Star Rating
Goal: 4–5 Stars
5
4
3
2
1
StarsSpring 2017 Spring 2020
14 21
10 6
2 3
1 0
0 0
December 2017 January 2020
1 5
8 17
15 5
4 5
2 2
Spiritual Care in the OP Setting
Mental Health Care
Quality and Service Excellence
Equity in Health Care Outcomes
2017 2018 2019 2021
Whole-PersonCare
11
Dynamic LearningCommunity
Growth of AdventHealth University
Expanded Research & Academic Programs
Developing AdventHealth Leaders
Team MemberPromise
Excellent Local Leadership
Fair Economics
Lighted Career Path
Caring for People through People
12
Managed Population Risk
Consumer Focused Connected Network
Clinical Excellence
Financial Strength and Growth
13
Managed Population Risk
Consumer Focused Connected Network
Clinical Excellence
Financial Strength and Growth
• Care advocacy• Consumer tech platform• Epic conversion
• Risk-based portfolio growth• Risk-enabled provider networks• New care delivery models
• Financial discipline• Cost improvement• Same store and
organic growth
• Safe and reliable culture• Achieving quality outcomes• Leverage analytics for
performance improvement14
Vision 2030Whole-PersonCare
15
COVID-19
16
Strengths going into the Pandemic
StrongBalance Sheet
Consumer Investments
UnitedClinical Team
One-Brand Approach
17
Main Inbound Line
Total Call Volume
222,400
Hope, Digital Chat Bot
Total Chat Volume
230,630
eCare Visits
Total eCare Visits
16,254
Live Chat with Care Advocate
Total Messages
23,034
Vivify-Go
Total Patient Referrals
13,419
Nurse Triage
Total Call Volume
51,280Total Make Goods
37,589
Service Recovery
Total Consumer Engagement Summaryfor COVID-19 Virtual Response Plan
Total Engagement = 594,606
Protect the Team
PPEProcurement
ManagementApproach
19
AMWAY Arena
Protect the Team
COVID Service Line
HRInitiatives
PPEProcurement
CommandCenter
Expense Management
ManagementApproach
21
0
200
400
600
800
1,000
1,200
Aver
age
# of
CO
VID
-19 P
ositi
ve a
nd P
UI P
atie
nts
437
1,113
889
584 605
869
1,045
556
COVID-19 Average Daily Census
Florida Outside Florida
May June July August September October November December
11% 12% 22% 18% 12% 12% 17% 20%% of Admissions
22
COVID-19 Key Learnings
• Lack of standardization of ancillary clinical services
• Disruption of just-in-time inventory system
• Over-reliance on ED & surgery revenues
• Supporting business re-openings
• Lack of a clear national message
• Lack of effective local public health systems
• Testing capabilities
MarketInternal
23
COVID-19 Key Learnings
• Lack of standardization of ancillary clinical services
• Disruption of just-in-time inventory system
• Over-reliance on ED & surgery revenues
• Supporting business re-openings
• Lack of a clear national message
• Lack of effective local public health systems
• Testing capabilities
MarketInternal
26
Vision 2030 Adjustments
• Re-envisioned Supply Chain Process and Ancillary System Leadership
• Accelerated Consumer andRisk-Based Care Model work
27
Paul RathbunSenior Executive Vice President & CFO
J.P. Morgan Healthcare ConferenceJanuary 12, 2021
28
Aspirational Priorities
Fund Organizational Growth
Strategic Growth
Capital Model Tied to Operating Performance
Consistent Operating
Performance
Maintain AA Credit Rating
Disciplined Financial Management
Competitive & Transparent Pricing (Affordable)
Transparent Pricing
Fund Investments in Strategic Priorities
Strategic Priorities
Optimize Cost Structure
Value Journey
Financial Strength and Growth
29
Same Store Volume Statistics vs. PY
* Same Store Excludes CTMC, Heart of Florida, Lake Wales, Ottawa & TH Huguley
Admissions
Surgeries
OP Observations
OP ER Patients
1.8%
1.9%
8.4%
5.8%
67,310
54,623
24,912
255,931
Jan - Feb 2020
(17.4%)
(38.8%)
(33.3%)
(33.5%)
79,993
51,371
24,165
244,633
Mar - May 2020
(1.3%)
(3.9%)
(14.7%)
(19.2%)
185,676
156,914
59,649
570,356
Jun - Nov 2020
30
GAAP Income StatementNovember YTD
* There May Be Rounding Differences Due to Format* Dollars in Millions
2019 Actual
2020 Actual
Total Operating Revenue $ 10,812 $ 11,232
Total Operating Expenses 10,082 10,796
Operating Income 730 436
Investment & Other 653 73
Net Income $ 1,383 $ 509
Operating Margin 6.8% 3.9%
Recognized: $335MDeferred: $116M
Nov YTD CARES Funds
31
13.3% 13.5% 13.3% 13.0%
10.3%
0%
4%
8%
12%
16%
2016 2017 2018 2019 2020 Nov YTD
1,146.3
Total Operating EBDITA Margin
* Minority Interest and LOR Reflected Below EBDITA
1,355.61,268.4 1,450.4 1,539.9
* Dollars in MillionsEBDITA Margin
Average Margin 11.6%Sep – Nov 2020*
* Average Margin Sept-Nov Excludes CARES Provider Relief Funds32
Balance Sheet Metrics
27.6%
21.1% 22.1%
15%
20%
25%
30%
35%
2016 2017 2018 2019 2020 Nov YTD
221238
253234
150
200
250
300
2016 2017 2018 2019 2020 Nov YTD 2020 NovAdjusted
164%
221% 223% 206%
100%
150%
200%
250%
300%
2016 2017 2018 2019 2020 Nov YTD 2020 NovAdjusted
Total Cash to Total Debt
2.402.01
2.75
0
1
2
3
4
2016 2017 2018 2019 2020 NovAnnualized
Days Cash on Hand
Total Debt to Capitalization Total Debt to EBDITA
* Adjusted Days Cash on Hand & Total Cash to Total Debt Excludes Medicare Accelerated Payments & Deferred Payroll Taxes Through November
33
Strategic Priority – EMR Conversion
+
Hospital
PhysicianHH & HospiceHH & Hospice
HospitalHospital
PhysicianPhysician
HospitalPhysician
Home HealthHospice
Care Everywhere + Community
Connect
Current Configuration Future Epic Configuration
A fully connected care network is foundational to AdventHealth’s strategy to deliver on our brand promise of whole-person care, advancing our consumer promisesto provide a seamless experience to all those we serve.
34
TimelineStrategic Priority – EMR Conversion
Q1
2020
Q2 Q3 Q4 Q1
2021
Q2 Q3 Q4 Q1
2022
Q2 Q3 Q4
Pre-work Build & Test Train & Deploy
Estimated Project Costs
Capital Costs $370MOperating Costs $290M
Scheduled go-live
35
Capital Allocation MethodologyStrategic Growth
2021 − 2023
Hospital
Strategic
28.0%
37.5%
82.0%
Division 12.0%
IT 4.5%
2018 − 2020
33.0%
28.0%
75.0%
9.5%
4.5%
Capital Allocation Model Percent of EBDITA*
* EBDITA-Based Model Utilized Since 2001
$1.6B of Estimated
Strategic Capital for 2021-2023 Capital Cycle
36
West Florida Outpatient StrategySouth Overland Park Tampa TowerTexas Health Mansfield
Strategic GrowthMajor Construction – 2018 through 2020
Multi-State Division
Central Florida Division
West Florida Division
Winter GardenFish Memorial Central Florida Outpatient Strategy Celebration Tower
37
Strategic GrowthAcquisition Activity | State of Florida
AdventHealth Hospital FacilityAs of January 1, 2018
38
AdventHealth Hospital Facility
2018-2019 Acquisitions
As of January 1, 2018
Health First Hospital Facility –2020 Acquisition of Minority Interest
Strategic GrowthAcquisition Activity | State of Florida
39
Extending the Healing Ministry of Christ
Forward Looking StatementsSlide Number 2Slide Number 3Brand Aided AwarenessSlide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Strengths going into the PandemicTotal Consumer Engagement Summary� for COVID-19 Virtual Response PlanSlide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25Slide Number 26Slide Number 27Slide Number 28Slide Number 29Same Store Volume Statistics vs. PY GAAP Income StatementTotal Operating EBDITA MarginBalance Sheet MetricsStrategic Priority – EMR ConversionStrategic Priority – EMR ConversionStrategic GrowthSlide Number 37Slide Number 38Slide Number 39Slide Number 40
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