SWMC BUSINESS PLAN FINANCIAL PROFORMAS-INCOME STATEMENT

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SWMC BUSINESS PLANFINANCIAL PROFORMAS-INCOME
STATEMENT
Revenue and Expenses from operation for first 5
years. Projections were built using data from
PDH, OSHPD, audited financial statements,
information from small rural hospitals, other
private and public sources, outsource vendors
and commitments from physicians.
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SWMC BUSINESS PLANFINANCIAL PROFORMASRETURNING
BUSINESS CALCULATION
Returning business net revenue equals FY 2013
actual less the Physical Therapy department.
Net Revenue generated by Dr. Pappas has been
replaced by efficiencies achieved by Drs.
Bollinger and Bragonier an expanded general
surgery program not included in new
business and, improved charge capture via the
new EMR software.
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SWMC BUSINESS PLANFINANCIAL PROFORMAS
HOW SWMC WILL GENERATE YEAR 1 PROJECTED
REVENUE 1. No significant change in attending
(referring) physicians. Of all referrals, 91
will arrive to the medical center by the
following 50 from primary care
physicians -Top referrers include Drs. Powers,
Rosa, Fichman, Davidson, Canova and Whisman. In
addition, WCHC is a consistent referral
source. 37 from the ER and attended to by the
hospitalists. 7 directly from the orthopedic
group 4 directly from independent general
surgeons 2 directly from local
cardiologist 2. EMS is prepared to bring
patients to SWMC.
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SWMC BUSINESS PLANFINANCIAL PROFORMAS
HOW SWMC WILL GENERATE YEAR 1 PROJECTED
REVENUE 2. Add more specialty physicians to
increase patient services GENERAL
SURGEONS Richard Bland Allan Hill Michael Bozuk
Peter Leoni Mitch Bailey VASCULAR SURGEON Loie
Sauer   INSTITUTE LEADERS 1.  SWMC Medical
Director-James K Gude MD 9.  Endocrinology-Roger
Minkoff MD 2.  General Surgery-Roger Delgado
MD 10. Pain-Michael Tran MD 3.  Orthopedics-Drs.
Bollinger MD Bragonier 11. Wound-Barry
Silberg MD 4.  Neurology Stroke-Alan Bernstein
MD 12. Geriatrics- Ida Jahed MD 5.  Emergency-Ro
dney Look MD 13. Neurosurgery-Brian Pereira
MD 6.  Psychiatry-Jonathan Hulkower MD 14.
Radiology-Ingo Rencken MD 7.  Integrative
Medicine-David Murphy PhD 15. Urology-Peter
Bretan MD 8.  Rheumatology-Richard Zweig
MD 16. Family Medicine-Rick Flinders MD   17.
Electric Medical Record/HarmoniMD- Misty Zelk MD
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SWMC BUSINESS PLANFINANCIAL PROFORMAS
HOW SWMC WILL GENERATE YEAR 1 PROJECTED
REVENUE 3. No significant change in physicians
performing procedures. For all procedures
performed 41 performed by general
surgeons 27 performed by orthopedic
surgeons remainder performed by other
specialists such as ENT, oncology, podiatry,
pain management and plastic surgery. 4. Many
of the specialist have unique skills that will
direct patients to SWMC. For example Dr.
Bollinger performs anterior hip replacements.
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SWMC BUSINESS PLANFINANCIAL PROFORMAS

• HOW SWMC WILL GENERATE YEAR 1 PROJECTED REVENUE
• 5. Collect 100 of charges with EMR software.
  Historically many charges were not captured
  during patient procedures.
• 6. Through improved revenue cycle management
  increase collection rate from 28 to 34
  (Healdsburg Hospital collection rate). Better
  collections improves net revenue by 1.7m.
• All revenue cycle vendors who submitted proposals
  to SWMC, confirmed that their systems would
  likely generate 5-10 in additional net revenue
  in year one from improvements to various steps
  in the revenue cycle such as financial
  clearance, clinical clearance, point of service
  collections, claims submission and denials
  management.
• Expand patient base beyond hospital district for
  example, West Santa Rosa and Rohnert Park
  Cotati.

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SWMC BUSINESS PLANFINANCIAL PROFORMASNEW
BUSINESS ANALYSIS
New business contributes 20 to Net Revenue
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SWMC BUSINESS PLANFINANCIAL PROFORMASUTILIZATION
STATISTICS FOR NEW SERVICES
New patients are created from the No-Wait ER, the
addition of new insurance products and an
expanded surgery program. Of the 728 new
patients, 246 (33) will become in-patients.
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SWMC BUSINESS PLANFINANCIAL PROFORMASGENERAL,
ORTHOPEDIC AND OTHER SURGEONS
Annual net revenue generated at hospitals by
various specialties range from 700k to 2.7m.
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SWMC BUSINESS PLANFINANCIAL PROFORMASINPATIENT
UTILIZATION STATISTICS
Total Return Business discharges were estimated
based on The Operating Indicators Report from PDH
financial package. The plan uses 2.5 days as the
average length of stay (ALOS). The ALOS for PDH
was 3.4 days. The reduction in ALOS days is due
to the increase in surgeries and their generally
lower ALOS requirements. The average daily
census (ADC), including new business is planned
at 10 patients. General and orthopedic surgery
patients total 30 of ADC.
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SWMC BUSINESS PLANFINANCIAL PROFORMAS
Primary drivers of expense reductions 1. Wages
and benefits
By April 2014, PDH management had reduced
salaries and benefits significantly. Historically
, PDH FTEs averaged 155. By April 1, 2014 PDH
FTEs had been reduced to 120. SWMC budgeted FTEs
total 117. Wage rates for SWMC plan match PDH FY
2013 wage rates.
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SWMC BUSINESS PLANFINANCIAL PROFORMAS
Primary drivers of expense reductions 2. Medical
Supplies
Cost of supplies decreases from PDH at 23 for FY
2013 to 16. Primary drivers of decrease include
standardization of surgery supplies and drugs and
best practices assistance from our GPO partner,
Amerinet. For example, Amerinet provides SWMC
with a supply ordering and inventory software
product to assist in controlling costs.
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