Presentation to Business Forecasting Roundtable
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1 Presentation to Business Forecasting Roundtable May 24, 2006 Cardinal Health System, Inc.
2 Presentation Overview Cardinal Health System, Inc. (CHS) Overview CHS Growth and Economic Contributions Future Healthcare Challenges 2
3 CHS Mission and Vision Mission: Cardinal Health System will promote wellness and improve the health status of the people of East Central Indiana and surrounding areas through patient care, health education, and medical research. Vision: Cardinal Health System will be the destination provider for a broad array of sophisticated services to support the healthcare needs of East Central Indiana. 3
4 CHS Strategic Goals Goal #1: Deliver Healthcare Services and Programs that are of Value to Multiple Stakeholders. Goal #2: Provide the Community with the Latest in Proven and Effective Medical Technology. Goal #3: Create a Safe Environment to Work and Care for Patients. Goal #4: Strive for Excellence by Exceeding Clinical Quality and Organizational Performance Standards. Goal #5: Increase Access to Services and Programs. Goal #6: Create and Maintain an Organization That is Fiscally Sound. (Benchmark = Moody s A-Rated Medians) 4
5 CARDINAL HEALTH SYSTEM, INC. (Non-Profit) 100% Interest 100% Interest Ball Memorial Hospital, Inc. (Non-Profit) Cardinal Health Ventures, Inc. (For -Profit) Cardinal Health System, Inc. Corporate Structure Blackford Community Hospital, Inc. (100% Interest) Jay County Hospital (Contract Management) Midwest HealthStrategies, Inc. (67% Interest) St. Vincent Randolph Hospital, Inc. (10% Interest) Marion Family Practice, LLC (100% Interest) East Central Radiology, LLC (49% Interest) Eye Center Group, LLC (32.63% Interest) Pathologists Associated, General Partnership (50% Interest) Surgicenter Group, LLC (47.76% Interest) Jay County Medical Facilities, LLC (35% Interest) The BMH Foundation, Inc. (Elect Directors) Mid -America Surgery Center, LLC (30% Interest) Progressive Can LLC (10% Interest) cer Care, Obligated Group Blue: Non-Profit Red: For-Profit Cardinal Behavioral Health, Inc. (49% Interest) Cardinal H ealth Choice SPC, Ltd. (100% Interest) Surgery Center of NorthCentral Indiana, LLC (8% Interest) Cardinal Health Alliance, LLC (50% Interest) Cardinal Health Partners, LLC (100% Interest) CHS Community Pharmacy Network, LLC (100% Interest) Cardinal Health Initiatives, LLC (100% Interest) 85
6 Summary of CHS Joint Ventures Perce nt Da te Com pa ny (For Profit) Owne d Sta rte d Service Pathologists Associated 50.0% 1988 Clinical/Reference Lab Surgicenter LLC 47.7% 1994 Surgery Center (eye) Eye Center Group LLC 32.6% 1994 Physician Group Cardinal Health Alliance 50.0% 1995 PHO East Central Radiology 49.0% 1997 Imaging Center River View Surgery Center 8.0% 1997 Surgery Center (general) Mid-America Surgery Center 30.0% 2003 Surgery Center (general) Progressive Cancer Care 10.0% 2003 Cancer Center Jay County Medical Facility 35.0% 2004 Medical Office Building TOTAL Perce nt Da te Com pa ny (Not-For-Profit) Owne d Sta rte d Service Mid-West HealthStrategies 67.0% 2003 Rehabilitation Services St. Vincent/Randolph Hospital 10.0% 2003 Hospital Cardinal Behavioral Health 49.0% 2006 Opening March,
7 Scope of Service Ball Memorial Hospital operates as a teaching hospital and a regional referral center providing tertiary services including: neurology and neurosurgery cardiology (including cardiac catheterization and open heart) oncology neonatology orthopedics (including joint replacements) physical rehabilitation 7
8 Statistics Category Acute Beds in Service Transitional Care Beds Acute Inpatient Days 75,598 76,780 75,721 Acute Inpatient Admissions 15,718 16,255 14,774 Newborn Days 3,418 3,434 3,354 Average Acute Length of Stay Average Daily Census (Acute) Emergency Room Visits 46,468 52,057 56,138 Surgical Cases - Inpatient 6,541 6,460 6,484 Surgical Cases - Outpatient 11,767 11,186 8,673 Radiology Procedures 124, , ,949 Laboratory Procedures 896, , ,509 Medicare Case Mix Index Occupancy % * 75% 75% 77% *Excludes Nursery and Skilled Care Unit 18 8
9 Medical Staff BMH Staff Classification Active Number of Staff 266 Consulting 77 Total 343 Ball Memorial Hospital has an experienced medical staff. Board Certification Rate: 87.5% (2002 National rate- 70.1%) Average Age of Active Staff: 46 (Three-fifths of all U.S. physicians are over age 45) (SOURCE: Pinnacle Health Group,
10 Percentage of Cases by Payer (Source: Internal Data from CHS) 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 37.30% Commerical 35.76% 31.85% 31.91% 17.11% 18.20% 8.02% 8.93% 7.10% 6.90% 5.01% 4.51% CHA Medicare Medicaid Self Pay Workers Comp
11 CHS Growth and Economic Contributions 11
12 Fort Wayne 81 miles Ball Memorial Is the Only Tertiary Referral Center in East Central Indiana Ball Memorial Hospital Muncie Indianapolis 61 miles Indiana 33 12
13 Inpatient Market Share by Geographic Cluster GRANT: 150 bed; 39 miles from BMH 1. Marion General: 69% 2. Lutheran: 5% 3. Ball Memorial: 5% 4. St. Vincent Indianapolis: 4% 5. The Heart Center: 2% BLACKFORD: 15 bed critical access; 20 miles from BMH 1. Ball Memorial: 46% 2. Blackford Community: 22% 3. Bluffton Regional: 11% 4. Lutheran: 4% 5. Marion General: 4% DELAWARE: 1. Ball Memorial: 83% 2. St. John s Health System: 3% 3. Community Hospital Anderson: 2% MADISON: 18 miles from BMH 1. St. John s: 35% (234 bed) 2. Community Hospital Anderson: 34% (207 bed) 3. St. Vincent, Indpls.: 5% 4. Ball Memorial: 3% HENRY: 107 bed; 22 miles from BMH 1. Henry County: 46% 2. Ball Memorial: 14% 3. St. John s: 8% 4. Hancock Regional: 6% 5. St. Vincent Indianapolis: 5% JAY: 35 bed critical access; 32 miles from BMH 1. Jay County: 33% 2. Ball Memorial: 31% 3. Bluffton: 11% 4. Lutheran: 7% 5. Parkview: 5% RANDOLPH: 24 bed critical access; 25 miles from BMH 1. Ball Memorial: 37% 2. St. Vincent Randolph: 30% 3. Reid Hospital: 18% 4. St. Vincent Indianapolis: 2% 5. Jay County: 2% 34 13
14 Physician Recruitment 9 Primary Care Physicians in last 12 months 38 Specialists in last 2 years Anesthesiology Thoracic and General Surgery OB/Gyn Gastroenterology Pathology Cardiothoracic Surgery Opthalmology Internal Medicine Radiology Electrophysiology Psychiatry Emergency Medicine Podiatry Oral Surgery Radiation Oncology Pulmonary Disease/Critical Care 14
15 Cardinal Access 15
16 Service Line Development and Marketing 16
17 17
18 WE WILL BE RAISING THE BENCHMARK FOR ALL OTHER HEALTHCARE ORGANIZATIONS TO MEASURE THEMSELVES AGAINST -Robert S. Curtis, President and CEO, Cardinal Health System 18
19 Ball Memorial Hospital Master Facility Plan $120M Project 400,000+ SF of New and Renovated Space Private Acute Care Patient Rooms 19
20 Future Healthcare Challenges Demographics (aging and decreasing population) Increasing Costs (people, technology, cost shifting) Un-insured or Under-insured Recruitment and Retention of Best Practitioners 20
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