THURSDAY, MARCH 26, 2015

Transcription

1 THURSDAY, MARCH 26, 2015

2 This presentation contains certain forward-looking statements concerning financial and operating plans and results which involve known and unknown risks and uncertainties. Various factors could cause Rady Children s Hospital-San Diego s (RCH) results to differ materially including, but not limited to, federal and state regulation of health care providers, changes in reimbursement policies of federal and state government and managed care organizations, competition in health care in RCH s market, general economic and market conditions, and change in RCH s labor and supply costs and its ability to retain personnel. Insofar as the statements contained in this presentation involve matters of opinion or estimates, even if not expressly stated as such, such statements are made as such and not as representations of fact or certainty. This presentation is provided for informational purposes only and should not be used for the purpose of making any decision to invest in any securities issued by or on behalf of RCH or any of its affiliates. This presentation does not constitute or form a part of an offer to sell or purchase, or the solicitation of an offer to sell or purchase, any such securities, and it is not intended to supplement or modify, or to be a substitute for, any disclosure prepared in connection with any offering of any such securities or for any other legally required disclosures. All opinions, forecasts, estimates, projections and valuations contained herein are preliminary and subject to change without notice. This presentation is provided as of March 26, If you are viewing this presentation after such date, events may have occurred subsequently that would have a material adverse effect on the information presented. RCH does not undertake any responsibility to update or issue revisions to any such forward-looking statements.

3 Children s hospitals are unique Overview of Rady Children s Financial metrics Concluding remarks

4

5

6 Patient population Full range of services Payor mix GME CHGME Mission, Mission, Mission

7 Eighth largest children s hospital (admissions) Strong market position $1.0 billion operating revenue Solid financial performance UCSD School of Medicine academic partnership Medical Practice Foundation Five joint venture hospital units Joint contracting ti for Hospital, Specialists, Primary Care Moody s A1 Positive, Fitch AA- Stable

8 Rady Children s Kaiser Others

9 Joint Venture NICUs at Scripps Memorial Hospital La Jolla and Encinitas Sole Pediatric Clinical Affiliate of the University of California, San Diego School of Medicine Joint Venture NICU and Pediatric Medical Unit at Palomar Pomerado Hospital Joint Venture NICU at Rancho Springs Medical Center Joint Venture Pediatric Medical Unit at Grossmont Hospital and MRI centers

10

11 restore, sustain, and enhance the and developmental off children hild through h h i in care, education, research, and advocacy iin th the outcomes and experience we deliver to children in our region, at a national level in our clinical, research and education missions

12

13

14

15

16

17 Discovery Book

18 (in millions)

19

20

21 ASSEMBLE world-class scientists and clinicians into a targeted, visible environment that combines a unique patient population with a leading academic research university EQUIP these researchers with a well- designed, d discovery-enabling shared research infrastructure Pediatric Genomic and Systems Medicine Institute ACCELERATE the translation of research discoveries into childhood disease prevention, diagnosis, treatment, and cure FOCUS these researchers talents into disease groups focused on solving specific childhood diseases using systems medicine approaches

22 Left Without Being Seen Pat ients Seen 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, % 5.0% 4.4% 60% 6.0% 5.0% 4.8% 3.7% 24% 2.4% 4.0% 3.0% 2.0% 07% 1.0% 0.26% 0.7% 0.0% May Jun Jul Aug Sept Oct Nov Dec LWBS % Pti Patients t seen in ED Pti Patients t "Left without t bi being seen" %

23 Visit Time

24 Rate of Grade 4 for all target units per 1000 patient days

25

26 First started managing risk in 1993 Ind dividual pre-paid children Medicaid Managed Care Plans and Commercial payers Over 270,000 unique patients system-wide Focus care on what is best for children not based on payor

27 Improve quality and outcomes Improve patient and family satisfaction Reduce cost Percent of Percent of Cost Children Children with Severe Chronic Illness Care redesign Navigator Home based services Supportive care High Risk Children Social assessment Frequent injuries i Training Frequent visits Safety 70% 20% 10% 14% Focus Navigation Intervention Healthy Children Immunizations Regular check ups Parental support 10% Prevention 76%

28 Clinical and Acute care and Financial key services Integrated Delivery System Information Technology Outpatient and Community based care MSO Services and MSO Services and Risk Management

29 Clinical and Acute care and Financial key services Integrated Pediatric academic medical center Delivery System Five joint venture hospital within a hospital Trauma center Behavioral Health Outpatient and Information Developmental Services Community based Technology Social Programs care Skilled Nursing and Rehabilitation MSO Services and MSO Services and Risk Management

30 Clinical and Acute care and Financial key services Integrated Delivery System Information Technology Outpatient and Community based care MSO Services and MSO Services and Risk Management

31 Clinical and Acute care and Financial key services Medical Foundation ~ 275 specialists Integrated Primary Care Medical Group and Delivery IPA System partners, 185 PCPs and 293 Specialists Clinical integration and integrated performance improvement Outpatient and Information Integrated t EMR Community based Technology Joint contracting care Medical Directors Care Redesign MSO Services and Risk Management

32 Clinical and Acute care and Financial key services Integrated Delivery System Information Technology Outpatient and Community based care MSO Services and MSO Services and Risk Management

33 Clinical and Acute care and Financial key services 6 Specialist Practice locations Integrated 65 Primary Care offices Delivery System 6 multi-specialty ambulatory service locations 4 urgent care centers Outpatient and Information Home health Community based Technology Palliative care care Hospice MSO Services and Risk Management

34 Clinical and Acute care and Financial key services Integrated Delivery System Information Technology Outpatient and Community based care MSO Services and MSO Services and Risk Management

35 Clinical and Acute care Care and management Financial key services Care coordination Integrated Nurse telephone triage Delivery System Quality MSO key functions: Authorizations Claims processing Outpatient and Information Member customer services Community based Technology Provider relations care Utilization management Data management and analytics MSO Services and Risk Management

36 Clinical and Acute care and Financial key services Integrated Delivery System Information Technology Outpatient and Community based care MSO Services and MSO Services and Risk Management

37 Clinical and Acute care and Financial key services Integrated Delivery System Integrated EMR Telemedicine Outpatient and Information Care Navigator tools Community based Technology Tools to support self-care care MSO Services and MSO Services and Risk Management

38

39

40 Margin

41

42

43

44 Cash and Investments $ millions Days Cash on Hand

45

46

47 Well funded plan Discount Rate 5.65% 4.52% 5.15% 4.62%

48 Well funded plan Steps taken to reduce expense validity Lump-sum offer to vested terminated employees June 2013 Annuity purchase June 2014 Soft freeze July 2015 Second lump sum offer June 2015 New mortality tables 2015

49

50 Commanding market position Strategic partnerships Strong and consistent revenue growth Rigorous expense management Culture of continuous improvement Consistently solid operating margins Strong balance sheet Well diversified investment portfolio Low risk debt structure

51