Best Practices in Hospital Key Financial Indicators – Hospital Key Financial Indicators Setting and Achieving Goals Steven Berger, CHE, FHFMA, CPA President H lth Healthcare Insights, I i ht LLC 510 Roosevelt Drive Libertyville, IL 60048 847-362-1244 E-mail:
[email protected] www.hcillc.com 1
About the Presenter About the Presenter Steven Berger is President of Healthcare Insights, LLC, which specializes in the teaching and consulting of healthcare financial management issues. In addition, Healthcare Insights has developed INSIGHTS, a management y pp y accountability and decision support software solution for the healthcare industry. Prior to his role at Healthcare Insights, Mr. Berger was Vice President, Finance for seven years at 250‐ bed Highland Park Hospital in suburban Chicago, Illinois. Before Highland Park Hospital and since 1978, he has been a hospital or health system finance officer in New York, New Jersey and Missouri. Mr. Berger has over 30 years of healthcare financial management experience. He holds a Bachelors of Science degree in History and a Master of Science in Accounting from the State University of New York at Binghamton. He is a CPA, a Fellow of the Healthcare Financial Management Association (FHFMA) where he has served as President of the First Illinois Chapter. Mr. Berger also served a three‐year term on the HFMA’s National Board of Examiners and was recently the Regional Executive of Region 7 of the HFMA. He is also a Fellow of the American College of Healthcare Executives (FACHE). In addition, over the past several years he has presented many healthcare finance related seminars throughout the U i d S United States and Canada including several two‐day classes such as Fundamentals of Healthcare Financial d C d i l di l d l h F d l f H l h Fi i l Management, Turning Data into Useful Information and Hospital Financial Management for the Non‐Financial Manager. He has also been published several times in Healthcare Financial Management magazine, including an August 2004 Nationally Award Winning article on the Ten Ways to Improve Cost Management in Hospital, an April 2002 management column and a February 2000 commentary in Modern Healthcare on the lack of training in the healthcare industry Additionally, Mr. Berger is the author of “Fundamentals of Healthcare Financial Management,” originally published in 1999 by McGraw‐Hill and the Healthcare Financial Management Association. This book was written from a practitioners point of view and is a distillation of Mr. Berger’s many years on the inside of healthcare institutions. The third edition of the book was published in January 2008 and is available at www.josseybass.com. Additionally, Mr. Berger co‐authored the 2002 text, “HFMA’s Introduction to Hospital Accounting, 4th edition”, published by Kendall Berger co authored the 2002 text, HFMAs Introduction to Hospital Accounting, 4th edition , published by Kendall Hunt, available at www.hfma.org. Mr. Berger’s 2003 book, “Understanding Nonprofit Financial Statements”, was published by BoardSource and is available at www.boardsource.org. His latest book, “The Power of Financial and Clinical Metrics: Achieving Superior Results in Your Hospital” was published in March 2005 and is available at www.ache.org. 2
Objectives of the Course y Hospital executives have a hard job to do! y In attempting to create and achieve an effective strategic plan, there is a great need to
determine specific outcomes that will be consistent with the organization's underlying mission, broad policies, culture and accepted industry norms…. y But what exactly does this mean? y What are the elements that will be instantly recognizable as "a" or "the" key performance indicators (KPIs) of success across the hospital industry. y This class will highlight the results of research with several hospitals that have undertaken to develop the proper metrics, set high goals and ensure that these goals have p p p g g g been met. y LEARNING OBJECTIVES: y Understand the need to utilize key performance indicators in daily, biweekly, monthly, quarterly and annual reporting. quarterly and annual reporting y Recognize the key performance indicators that are being used at several other hospitals to achieve improved financial results. y Learn the best ways to present the KPIs for effective management outcomes.
3
Objective #1 Understanding the Need to Utilize K P f Key Performance Indicators in Daily, I di t i D il Biweekly, Monthly, Quarterly and y y y Annual Reporting 4
What are What are Key Performance Indicators (KPIs)? y Key Performance Indicators (KPIs) are defined as
measures or metrics that have been chosen, by an organization s leadership team, as representative of organization’s leadership team, as representative of the most important outcomes to be achieved y KPIs are developed to measure the results of organizational policies, practices and procedures i i l li i i d d y KPIs represent key driver and critical success factors to the organization y The organization needs to monitor the results of these performance metrics to determine the quality of its financial operations f it fi i l ti 5
How Can KPIs Be Used How Can KPIs Be Used to Determine Financial Quality? y KPIs allows the organization to y Recognize key organizational success drivers y Set the level of these drivers (goals) y
Most often through strategic and operational benchmarking
y Manage for achievement of these goals y Foster accountability through the recognition of the
achievement y Set pay and bonus levels based on goals and outcomes
6
How Do Best Practice Hospitals Use How Do Best Practice Hospitals Use KPIs in Their Operations? y Best Practice Hospitals y Utilize a set of numbers (metrics) representing key success factors y Set goals through objectively derived benchmarks y Monitor the goals in a value‐added manner y y y y y y
Daily W kl Weekly Biweekly Monthly Quarterly Annually
y Take appropriate management actions as a result of the
achievement or lack thereof.
7
What Do Best Practice KPI What Do Best Practice KPI Hospitals Do Differently? y Best Practice Hospitals y Use many tools and techniques to set and monitor goals y Pay great attention to the detailed outcomes y Employ a “best practices” orientation through the utilization of peer benchmarks y Apply management techniques including: y y
Accountability for meeting goals, and positive and negative consequences
y Achieve outcomes far in excess of the average
8
What are the Values of the KPIs? y The KPIs provide significant value to any organization that
utilizes them to y Choose the most important indicators for the organization y Set the goals (using benchmarks) y Create action plans to achieve the goals y Implement the action plans y Monitor the results of the implementation y Communicate the results back to the affected parties (Feedback) C i t th lt b k t th ff t d ti (F db k) y Development positive and negative consequences based on the
results 9
Success with KPIs y In the 1970’s and early 1980’s, Humana corporate office mandated
several targets that the individual hospital CEO’s had to meet in order to get bonuses and stock y The CEO The CEO’s had targets for s had targets for y Budgets y Census day volumes y Profit margins
y Because these goals were consistently met, y “Humana hospital administrators were known as the best paid y 9 , administrators in the early 1980s”, and y “In 1987, of the 40 hospitals with the highest operating profit margins”, 17 were Humana facilities, according to a study by HCIA. y 22 of the remaining 23 hospitals on the list were also investor‐ owned owned. Source: Columbia/HCA: Healthcare on Overdrive, Sandy Lutz and E.Preston Gee, McGraw Hill, page 15.
10
How Other Industries Use KPIs to How Other Industries Use KPIs to Achieve Superior Results y Every industry has key performance indicators that
represent success factors. For example, y Airlines Ai li y
Revenue per passenger mile
y Steel y
Metric tons of steel produced
y Retailing y
Sales per square foot
11
Objective #2 Recognizing the Key Performance I di t Indicators That Th t are Being B i Used U d att Several Other Hospitals p to Achieve Improved Financial Results 12
KPI Elements y KPIs come in so many different types y Every organization is likely to choose different KPIs y KPIs, by the nature of their usefulness, will affected by a KPIs by the nature of their usefulness will affected by a
variety of factors y Location y Urban, suburban, rural, state Ub b b l y Payer mix y Medicare, Medicaid, Managed Care, Self Pay y Tax status y For‐profit, not‐for‐profit, governmental, military y Reporting periods y Daily, weekly, biweekly, monthly, quarterly, annually 13
Daily KPIs – Daily KPIs Hospital Wide Volume Indicators y Inpatient y Patient days y Average length of stay y Admissions Ad i i y Discharges y Transfers y Revenues (Gross Charges) y Outpatient y Visits y Tests y Procedures y Modalities y Revenues (Gross Charges) 14
Daily KPIs – Daily KPIs Department Level Workload Units y Some important departmental workload units are: y Nursing (Medical/Surgical, Critical Care, Telemetry, Maternity, Etc.) y y y y y
Patient Days Adjusted Patient Days Severity Adjusted Patient Days Admissions, Discharges, Transfers Severity Adjusted ADT
y Radiology, Laboratory, Cardiology y Tests T y Procedures y Relative Value Units (RVUs) y Rehabilitation Services (Physical, Occupational, Speech Therapies) y Procedures P d y Modalities y Surgical Suite y Cases y Severity Adjusted Cases y Minutes Per Case
15
Baldrige and Top 100 Winner Case Study SSM Health Care
1 3 4 4 0 1 3 0 3 1 1
0 2 1 1 2 2 1 3 1 0 0
43 42 14 54 42 42 35 42 20 13 52
21
13
399
Month to Date Budget Variance
Month Budget
LO (B S as E ed D on V i s C its ha O rg ut es pa Po tie st nt ed R )* eg ist r at In io pa ns tie * nt Su rg er O ie ut s* pa tie nt Su rg er ie To s* ta lS ur ge ri O es pe n H ea rt Su rg er ie C s ar di ac C at hs In pa tie nt R ev en ue O
s
C um ul at iv e
tC en su
A dm iss SC N
Pe ds + +
M id ni gh
io iss A dm A du lt
ds A Pe
1 Saturday 2 S d 3 Sunday 4 5 6 7 8 Saturday 9 Sunday 10 11 12 13 14 15 Saturday 16 Sunday 17 18 19 20 21 22 Saturday 23 Sunday 24 25 26 27 28 29 Saturday 30 Sunday 31 Month to Date Actuals
% Variance
A du lt
dm i ss
io n
Bi r
A ug
us t
th s*
s+ SC N
(S i
ns
ck
ba b
io ns
ie s)
Daily Operating Summary 43 44 1 15 55 44 44 36 45 21 13 52 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 412
31
163 149 134 168 175 161 154 156 124 122 157
104 80 74 4 105 89 114 81 112 95 106 102
199 40 24 229 188 184 203 176 51 18 201
24 6 5 20 16 13 8 19 5 4 16
18 1 0 28 15 17 35 18 1 0 21
1,663
3.79 3.59 43 4.37 3.91 3.93 3.88 3.93 3.87 3.99 4.18 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04
1,062
1,513
136
154
42 7 5 48 31 30 43 37 6 4 37 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 290
1 0 0 3 2 1 3 4 0 0 1
20 1 0 14 7 12 8 14 0 0 7
1,172,443 602,849 43 16 435,716 1,109,287 1,116,312 828,066 817,852 1,130,889 451,820 413,090 1,073,455
506,876 129,647 139 2 2 139,252 657,494 433,525 440,992 488,775 514,028 104,396 205,454 389,687
15
83
9,151,778
4,010,125
430
1,893
4.40
1,222
2,045
164
186
351
10,111,295
4,117,665
-10
-18
-230
0.37
-160
-532
-28
-32
-61
-959,517
-107,539
-31.2%
-4.2%
-12.2%
8.3%
-13.1%
-26.0%
-17.2%
-17.3%
-17.3%
-9.5%
-2.6%
86
1,212
5,335
4.4018152
3,444
5,762
463
525
28,495,468
11,604,328
16
Reprinted with Permission
Daily KPI (Most Practical) Daily KPI (Most Practical) – Hours Per Units of Service (Productivity) y Putting daily hours of service together with daily units of
service can produce one of the most meaningful key ( p g) financial (and operating) indicator y Hours (worked or paid) per unit of service y This is otherwise known as Productivity
y As we will see later As we will see later, productivity can also be developed productivity can also be developed y Weekly (not common) y Biweekly y Monthly y Quarterly y Annually 17
Baldrige and Top 100 Winner Case Study SSM Health Care
Daily Labor Productivity by Department
Reprinted with Permission
18
Weekly KPIs y Any KPI that is produced on a daily basis can be
aggregated on a weekly basis y We will see an excellent representation of this later in W ill ll i f hi l i the class
19
Biweekly KPIs y When reporting biweekly results, the most common KPIs are labor related: y Payroll y y
Hours paid Hours worked
y Non payroll y Simple units of service (Tests, Procedures) y Complex units of service (Relative Value Units) y Productivity Based y Hour worked per units of service y H Hours paid per units of service id it f i y Average dollars per units of service, and… y The variances y Efficiency Variance (this is also available on a daily basis, if desired y Difference between budgeted and actual hours y Rate Variance R V i y Difference between budgeted and actual average hourly rates
y All of the other KPIs developed for daily reporting are applicable on a biweekly basis,
including Charge Based (chargeable services rendered) y Inpatient gross revenues p g y Outpatient gross revenues
20
Monthly KPI Concepts y Monthly is the time period most often associated with
financial reporting y KPIs are often the result of monthly balance sheet and
income statement reporting y The most important KPIs to report on a monthly basis are those that are deemed to be relevant to bond ratings th th t d d t b l t t b d ti (even if there are no bonds outstanding…maybe someday soon, the organization will want to go out to th d bt the debt market) k t)
y It is important to set up the KPI reporting to maximize
the understanding of the reader g 21
Monthly KPIs – Monthly KPIs Volumes y Inpatient y y y y y y
Admissions Adjusted admissions Observation Days
y y y
Average length of stay Patient days Average daily census
Discharges Adjusted discharge
y Payer Mix y y y y
Medicare d Medicaid Managed Care Other
y Outpatient
y
Emergency department (ED) admissions ED admissions as a percentage of total admissions ED admissions as a percentage ED visits
y y y
Surgical Procedures and C‐Sections Same Day Surgery Procedures Open Heart Surgery Procedures
y y y y y y y y
Deliveries Laboratory Procedures Radiology Procedures MRI Procedures Ultrasounds CT Scans Home Health Visits Family Care Center Visits
y y
22
Monthly KPIs – Monthly KPIs Financial y y y y y y y y y y
Days cash on hand Operating margin percentage Net (excess) margin percentage ( ) g p g Debt service coverage Debt to capitalization percentage Cushion ratio Capital expense percentage Average age of plant Days of revenue in accounts receivable Bad debt & charity expense as a percentage of net patient revenue y Current ratio 23
Monthly KPIs – Monthly KPIs Operational y Salaries, fringe benefits and contract labor as a y y y y y y y y y
percentage of total revenue Salary expense per adjusted admission Supply expense per adjusted admission Total expense per adjusted admission Supply expense as a percentage of net patient revenue Outpatient revenue as a percentage of total revenue Case mix index (CMI) N t Net revenue per adjusted admission (case mix dj t d d i i ( i adjusted) Cost per adjusted admission (case mix adjusted) T l id h Total paid hours per adjusted patient day dj d i d 24
Quarterly KPIs y Quarterly KPIs are most often associated with bond debt
reporting y Bonds have covenants that must be met in order to ensure that the borrower (the hospital) is not defaulting y The covenants are often in the form of ratios, such as , y Current ratio y Cushion ratio y Debt to capitalization b l y Debt service coverage y Days cash on hand 25
Annual KPIs y For annual KPIs, best practice hospitals are utilizing a
variety of benchmarked metrics that are to the industry y There are several different sets of Best Practice Key Financial Indicators to choose from. Here is a sampling: y Solucient’s 100 Top Hospitals® Financial KPIs y Cleverley and Associates Financial Strength Measures y HMFA’s Key Hospital Financial Statistics and Ratios y Standard and Poors y Fitch Ratings Fi h R i y Ingenix y Premier y Solucient S l i t 26
Thomson 100 Top Hospitals® Financial Financial Thomson 100 Top Hospitals KPIs Calculations and Benchmarks 100 Top Hospital Winners
Peer Group of U.S. Hospitals
3.52
3.94
1) Severity-adjusted average length of stay Totall Patient i Days (adjusted ( dj d for f severity i (RDRG)) ( G)) Total Discharges
2) Expense per adjusted discharge, case mix- and wage adjusted
$
4,147
$
4,950
Total Operating Expenses Number of Adjusted Discharges (case mix and wage adjusted)
3) Profitability (operating profit margin) %
8.95
2.46
0.35
0.16
Total Operating Revenue – Total Expenses Total Operating Revenue
4) Cash flow to total debt ratio Net Income + Depreciation Expense + Interest Expense Total Liabilities
5) Tangible assets (net PPE) per adjusted discharge
$
3,026
$
2,727
Total Property, Plant and Equipment – Accumulated Depreciation Total Number of Acute Care Discharges Reprinted with Permission – Solucient, Courtesy of Jean Chenowith, Executive Director, Published in 2007 www.solucient.com
27
Cleverley & Associates Financial Strength Measures and Benchmarks MEASURE
CALCULATION Total Margin - 4.0 4.0 + Days Cash on Hand - 50 50 Debt Financing % - 50 50 Accumulated Depreciation Expense % - 50 50
LOW QUARTILE
HIGH QUARTILE
-2.0
3.5
-2.4
10.8
29
78
1)
Financial Strength Index
2)
Total Margin
Excess of Revenues Over Expenses Total Revenue
3)
Days Cash on Hand
Cash and Cash Equivalents + Long Term Investments Total Expenses / 365
4)
Debt Financing Percentage
Total Assets - Net Assets Total Assets
x 100
53.8
26.1
5)
Accumulated Depreciation Percentage
Accumulated Depreciation Gross Property Plant and Equipment
x 100
56.2
49.4
100.4
113.1
17.3
22.8
6)
Overall Charge Index
7)
Surgical Cases Percentage
x 100
Average Charge per Medicare Discharge (CMI adjusted) US Median x Inpatient Revenue Percentage + Average Charge per APC (RW adjusted) x Outpatient Revenue Percentage US Median Total Medicare Inpatient Surgical Cases Total Medicare Inpatient Cases
x 100
Reprinted with permission: William O. Cleverley, Ph.D. President Cleverley & Associates 1-888-779-5663 ( Ext. 222)
[email protected]
28
Cleverley & Associates Financial Strength Cleverley & Associates Financial Strength Measures and Benchmarks 8)
Market Share Percentage
Net Patient Revenue Sum of Net Patient Revenues in County
x 100
32
43
9)
Change in Medicare CMI Percentage
Percentage Change in Medicare Case Mix Index (two years)
0.1
1.0
10)
Non Government Payers Percentage
Percent of Revenue from Sources Other Than Medicare and Medicaid
31.8
36.1
11)
Overall Cost Index
Average Cost per Medicare Discharge (CMI adjusted) US Median x Inpatient Revenue Percentage + x Outpatient Revenue Percentage Average Cost per APC (RW adjusted) US Median
103.3
101.7
12)
Net Patient Revenue per Full Time Equivalents Net Patient Revenues Full Time Equivalents
99.0
126.8
13)
Medicare Length of Stay (CMI = 1.00)
Medicare Inpatient Days Medicare Discharges x CMI
4.3
3.9
14)
Overhead Cost Percentage
Overhead Expenses Total Expenses
33.6
32.3
15)
Times Interest Earned
Excess of Revenues Over Expenses + Interest Expense Interest
-0.5
10.3
x 100
Reprinted with permission: William illi O. O Cleverley, Cl l Ph.D. h President Cleverley & Associates 1-888-779-5663 ( Ext. 222)
[email protected]
29
HFMA Knowledge Network® HFMA Knowledge Network Key Hospital Financial Statistics and Ratio Medians – December 2007 S & P (1) Fitch (2) Thomson (3) Ingenix / Premier, Inc Data Advantage Measure All Ratings All Ratings Solucient (4) (5) Corp (6) Sample size (n) 556 218 644 1,548 699 4,363 Average length of stay (%) N/A 4.50 4.19 4.42 4.34 4.70 Maintained bed occupancy (%) N/A N/A 63.07 53.50 58.61 64.84 Operating margin (%) 2.90 2.80 2.98 2.82 2.61 (0.59) Excess margin (5) 5.30 5.00 4.82 N/A 4.61 6.39 Debt service coverage (x) 3.90 3.80 3.42 3.74 N/A N/A Current ratio (x) N/A N/A 2.13 2.02 3.17 1.92 Cash on hand (days) 162 20 162.20 168.50 168 50 124 71 124.71 99 10 99.10 N/A 37 44 37.44 Cushion ratio (%) 13.20 12.70 N/A 7.76 N/A N/A Accounts receivable (days) 49.90 49.70 53.88 53.70 51.91 52.55 Average payment period (days) 58.10 62.30 50.83 51.40 N/A 67.28 Average age of plant (years) 9.60 9.80 9.68 9.73 N/A 14.33 Debt to capitalization (%) Debt-to-capitalization 37 40 37.40 40 80 40.80 37 19 37.19 28 00 28.00 35 89 35.89 30 84 30.84 Capital expense (%) N/A N/A 7.32 5.53 6.72 4.05 1. 2. 3. 4 4. 5. 6.
Standard & Poor’s US Not For Profit Healthcare 2007 Stand-Alone Hospital Medians FITCH Ratings. 2007Median Ratios for Nonprofit Hospitals and Health Care Systems 2007 Thomson Healthcare Action O-I Data 2007 Ingenix,, Ingenix Inc. Inc Financial Analysis and Str. Str Op. Op Indicators Services and Medicare Cost Reports (2007 Almanac Version) Premier, Inc. Operations Advisor for the Year Ended June 30, 2007 (Median Data) Copyright 2007 by Data Advantage Corporation Reprinted with Permission All Rights Reserved. Healthcare Financial Management Association (HFMA), 2007
30
Key Hospital Financial Ratio Calculations Operating margin (%) Excess margin (%) Debt service coverage (x) Current ratio (x) Cash on hand (days) Cushion ratio ((%)) Accounts receivable (days) Average payment period (days) Average age of plant (years) Debt-to-capitalization p ((%)) Capital expense (%)
(Total operating revenues – Total operating expenses) / (Total operating revenues) x 100 (Total operating revenues + Non-operating revenues – Total operating expenses) / (Total operating revenues + Non – operating revenues) x 100 (Excess of Revenues ove Expenses + Deprec + Interest Exp) / (Principal + interest payments) (Current Assets / Current Liabilities) ((Cash and Cash Equivalents + Board Designated Funds for Capital) * 365) / (Total operating expenses – depreciation and amortization expenses) (Cash + Short Term Investments + Unrestricted Long Term Inv ) / (Principal + interest payments) (Net patient accounts receivable x 365) / net patient revenues (Current Liabilities) / ((Total Expenses - Depreciation) / 365)) (Accumulated Depreciation) / (Depreciation Expense) ((Longg term debt)) / ((Longg term debt + Net Assets)) x 100 (Interest Expense + Depreciation Expense) / (Total Expenses) x 100
31
Poll Questions y 1. Are you capturing and reporting the budgeted and
actual results of the 11 financial metrics on a monthly basis? y Yes Y y No
y 2. Have you developed labor productivity standards at your
h hospital? i l? y Yes y No
y 3. If yes, are you routinely (biweekly) reporting the
budgeted and actual labor productivity results? y Yes y No
32
Objective #3 Learning L i the th Best B t Ways W to t Present P t the Keyy Performance f Indicators for f Effective Management Outcomes 33
Understanding the Need to Utilize Key Understanding the Need to Utilize Key Performance Indicators in Reporting There are so many different ways to present financial information y Report designs should include a variety of options y y y y y
Who is the recipient (i.e. who is the report being designed for?) Who else will be receiving the report? What is the purpose of the report (what is trying to be achieved?) What is the scope of the report? Wh t ti i d What time periods are needed in the report? d d i th t?
y Report designs should include a variety of looks y Trends y Color coding y Graphs and charts rather than tables and narratives, if appropriate y Most importantly, all reports should be ACTIONABLE!!! y Building reports around key financial indicators helps to achieve these goals 34
EXAMPLE HOSPITAL AND HEALTH CENTERS THE IMPORTANT NUMBERS REPORT 2003 MAY, 2003 ACTUAL VS. PRIOR YEAR
ACTIVITY
The Important Numbers Report Current Month
Budget Month
Prior Year
Variance To Budget
Variance To Prior Year
(77.00) (8.00) (116.00) 6 00 6.00 18.00 (228.06) (641.30) (238.59) (647.94) 0.11 0.17 (3.74) (0.01) 468.00 (107.00) 4.00 (162.00) 6.00 35.00 3.00 1.51 327.00 (48.00) (13.00) (4,974.00) (1,457.00) 0.07 0.09 (10 00) (10.00)
(10.00) 4.00 371.00 27 00 27.00 27.00 (232.86) (322.18) (237.83) (322.55) 0.23 0.33 11.97 0.04 (1,804.00) 43.00 11.00 (143.00) 3.00 (579.00) (17.00) (5.00) 122.00 (52.00) (17.00) 3,298.00 (2,142.00) 0.22 0.05 2 00 2.00
Current YTD
Budget YTD
Important Numbers Report
Admissions (Excludes Nursery) Admissions (Nursery) Patient Days (Excludes Nursery) Patient Days (Nursery) Observation Days Equivalent Discharge Equivalent Patient Days Equivalent Discharge (Includes Nursery) Equivalent Patient Days (Includes Nursery) ALOS (ALL) ACUTE ALOS (Excludes Hospice, Rehab & Psyc Average Daily Census %Occupancy OP Registrations(Including ER) ER Visits Including IP Admits ER IP Admits Surgeries Open Heart Surgeries (OF ONLY) Home Health Visits Home Health Census Home Health Admissions Physician Visits Psych Admissions Rehab Admissions OP Procedures OP Visits Average Acuity -Total Average Acuity - Medicare Deliveries
1,808.00 145.00 7,585.00 366 00 366.00 205.00 2,644.14 11,092.82 2,750.17 11,360.45 4.20 4.11 244.68 0.70 12,231.00 5,060.00 1,074.00 1,096.00 26.00 4,085.00 322.00 176.00 2,145.00 40.00 63,181.00 17,291.00 1.19 1.43 143 00 143.00
1,885.00 153.00 7,701.00 360 00 360.00 187.00 2,872.20 11,734.12 2,988.76 12,008.39 4.09 3.94 248.42 0.71 11,763.00 5,167.00 1,070.00 1,258.00 20.00 4,050.00 319.00 174.49 1,818.00 48.00 53.00 68,155.00 18,748.00 1.12 1.34 153 00 153.00
1,818.00 141.00 7,214.00 339 00 339.00 178.00 2,877.00 11,415.00 2,988.00 11,683.00 3.97 3.78 232.71 0.66 14,035.00 5,017.00 1,063.00 1,239.00 23.00 4,664.00 339.00 181.00 2,023.00 52.00 57.00 59,883.00 19,433.00 0.97 1.38 141 00 141.00
9,107.00 746.00 38,274.00 1 763 00 1,763.00 1,212.00 13,476.87 56,801.44 14,069.02 58,109.65 4.20 4.09 253.47 0.72 59,859.00 24,907.00 5,382.00 5,547.00 121.00 19,501.00 324.00 829.00 10,717.00 4.00 246.00 321,351.00 93,876.00 1.16 1.35 730 00 730.00
9,679.00 770.00 39,559.00 1 826 00 1,826.00 1,047.00 14,726.10 60,186.96 15,311.85 61,576.04 4.09 3.95 261.98 0.75 60,410.00 25,565.00 5,297.00 6,465.00 99.00 20,250.00 319.00 860.84 9,090.00 233.00 259.00 325,418.00 95,064.00 1.12 1.34 770 00 770.00
Prior Year Variance To YTD Budget 9,268.00 714.00 37,948.00 1 661 00 1,661.00 1,199.00 14,156.00 58,296.00 14,867.00 59,572.00 4.09 3.92 251.31 0.72 73,121.00 24,820.00 5,200.00 6,379.00 96.00 20,762.00 323.00 902.00 9,922.00 210.00 281.00 297,720.00 97,256.00 1.13 1.37 704 00 704.00
(572.00) (24.00) (1,285.00) (63 00) (63.00) 165.00 (1,249.22) (3,385.52) (1,242.83) (3,466.39) 0.12 0.15 (8.51) (0.02) (551.00) (658.00) 85.00 (918.00) 22.00 (749.00) 5.00 (31.84) 1,627.00 (229.00) (13.00) (4,067.00) (1,188.00) (0.04) (0.01) (40 00) (40.00)
35
EXAMPLE HOSPITAL AND HEALTH CENTERS THE IMPORTANT NUMBERS REPORT 2003 MAY, 2003 ACTUAL VS. PRIOR YEAR
ACTIVITY
Current Month
The Important Numbers Report Budget Month
PriorVariance To Variance To Year Budget Prior Year
BALANCE SHEET Net Days in Receivables Net Days in Receivables (Regional Summary)* Capital Expenditures and Equity Transfers Equity Growth Total Contributions - Restricted/Unrestricted *Includes Current YTD Net Patient Serv. Revenue (excludes Premium Revenue) OPERATIONS ALL Gross Revenues Contractual Allowances+CGS Net Patient Revenue Other Revenue Salary, Benefits and Contract L Interest, Depreciation and Amo Total Expenses T t l Operating Total O ti Income I Investment Income Contributions Other Non Operating Income Net Income EBIDTA EBIDTA Margin NET INCOME BY ENTITY Hospital and Other Home Health Outpatient Pharmacy Buildings Professional Practice Operating Income/(Loss) Operating Margin Non Operating Hospital Non-Operating Total Total Margin Pct. Return on Investment
REVENUE % Inpatient %Outpatient
49,757,630 30,040,511 19,717,119 1,052,379 10,585,072 1,391,636 20,914,879 (145 381) (145,381) 26,688 5,015 19,248 (94,430) 1,246,255 6.00%
46,366,746 26,966,161 19,400,585 796,248 10,086,119 1,392,883 20,356,576 (159 743) (159,743) 50,077 85,243 (24,423) 1,233,140 6.11%
(170,897) 90,518 42,208 (46,042) (61,168) (145,381) -0.70% 50 951 50,951 (94,430) -0.45%
(234,050) 138,058 2,328 (9,118) (56,961) (159,743) -0.79% 135 320 135,320 (24,423) -0.12%
(350,663) 185,238 (5,067) (52,593) (95,546) (318,631) -1.64% 10 209 10,209 (308,422) -1.58%
68.38% 31 62% 31.62%
65.63% 34 37% 34.37%
63.41% 36 59% 36.59%
Current YTD 70 70 30,513,618 -4.09% 382,219
44,239,820 3,390,884 25,222,690 3,074,350 19,017,130 316,534 461,124 256,131 9,583,229 498,953 1,353,030 (1,247) 19,796,885 558,303 (318 631) (318,631) 14 362 14,362 2,672 (23,389) 3,867 (80,228) 3,670 19,248 (308,422) (70,007) 1,034,399 13,115 5.31% -0.11%
Budget YTD 62 62 3.01%
Prior Year YTD 60 58 6,307,832 -1.23% 134,406
Variance To Budget 7
5,517,810 4,817,821 699,989 591,255 1,001,843 38,606 1,117,994 173 250 173,250 24,016 1,148 15,578 213,992 211,856 0.69%
244,634,967 147,991,222 96,643,745 4,149,651 49,934,732 6,959,504 102,991,121 (2 197 725) (2,197,725) 86,625 28,098 18,808 (2,064,194) 4,761,779 4.72%
234,559,312 136,414,939 98,144,373 3,992,939 49,795,099 6,964,415 101,294,472 842 840 842,840 250,385 426,215 1,519,440 7,807,255 7.64%
215,098,122 123,938,114 91,160,008 2,261,950 44,870,888 6,765,332 94,474,069 (1 052 111) (1,052,111) 476,313 3,633 8,308 (563,857) 5,713,221 6.12%
10,075,655 11,576,283 (1,500,628) 156,712 139,633 (4,911) 1,696,649 (3 040 565) (3,040,565) (163,760) (398,117) 18,808 (3,583,634) (3,045,476) -2.92%
63,153 (47,540) 39,880 (36,924) (4,207) 14,362 0.09% (84 369) (84,369) (70,007) -0.33%
179,766 (94,720) 47,275 6,551 34,378 173,250 0.94% 40 742 40,742 213,992 1.13%
(2,509,343) 616,696 28,881 (45,201) (288,758) (2,197,725) -2.18% 133 531 133,531 (2,064,194) -2.05% -2.92%
382,926 749,465 13,443 (45,599) (257,395) 842,840 0.83% 676 600 676,600 1,519,440 1.49% 2.15%
(1,523,150) 1,078,048 78,264 (282,989) (402,284) (1,052,111) -1.13% 488 254 488,254 (563,857) -0.60% -0.52%
(2,892,269) (132,769) 15,438 398 (31,363) (3,040,565) -3.01% (543 069) (543,069) (3,583,634) -3.54% -5.08%
2.75% -2.75% 2 75%
4.97% -4.97% 4 97%
67.38% 32 62% 32.62%
65.73% 34 27% 34.27%
65.31% 34 69% 34.69%
1.66% -1.66% 1 66%
36
The Important Numbers Report The Important Numbers Report EXAMPLE HOSPITAL AND HEALTH CENTERS THE IMPORTANT NUMBERS REPORT 2003 MAY, 2003 ACTUAL VS. PRIOR YEAR
ACTIVITY
Current Month
Budget Month
SALARY INFO FTE per Adjusted Occupied Bed Employees Paid (Last Payroll) Paid FTE's Worked FTE's Compensation Ratio Salary/Benefit/Contract Labor per Operating Rev. Benefit Percentage of Salaries Salary/Benefit y per p FTE %OT %Non Productive Manhours Per Adjusted Admission * Manhours Per Adjusted Patient Day * * Includes contracted labor hours
5.55 2,256.00 2 256 00 1,985.62 1,824.00 54.97% 50.96% 29.21% 5,330.88 , 2.74% 8.67% 132.66 31.62
1,902.66 1,705.00 53.98% 49.94% 25.56% 5,301.05 , 2.41% 10.17% 117.03 28.64
FTE's BY ENTITY (Paid) * Hospital and Other CH* Hospital and Other OF* Home Health Professional Practice* Total* * Includes contracted labor hours
1,412.37 502.63 57.88 12.74 1,985.62
1,318.84 517.45 55.53 10.84 1,902.66
5.03
Prior ariance To Variance To Year Budget Prior Year 5.10 2,188.00 2 188 00 1,871.46 53.79%
0.52 82.95 119.00 0.99% 1.03% 29.83 0.33% -1.50% 15.64 2.98
1,295.87 506.05 56.67 12.87 1,871.46
93.53 (14.82) 2.35 1.90 82.95
0.45 68.00 68 00 114.16
Current YTD 5.30
Budget YTD 4.89
Prior YearVariance To YTD Budget 4.83
1,989.13 1,947.74 1,865.62 1,807.00 1,763.00 1,691.99 1.18% 53.70% 52.70% 52.60% 49.54% 48.75% 48.03% 26.29% 26.00% 24.93% 25,103.82 , 25,565.59 , 24,052.00 , 2.74% 2.35% 5.35% 9.23% 9.94% 9.10% 126.64 113.81 112.77 30.13 27.85 27.54
116.50 (3.42) 1.21 (0.13) 114.16
1,422.19 495.99 57.98 12.97 1,989.13
1,363.11 517.19 56.59 10.84 1,947.74
1,277.17 519.06 56.08 13.31 1,865.62
0.41 41.39 44.00 1.00% 0.79% 0.29% ((461.78)) 0.38% -0.72% 12.83 2.29
59.07 (21.20) 1.39 2.13 41.39
37
The Important Numbers Report The Important Numbers Report EXAMPLE HOSPITAL AND HEALTH CENTERS THE IMPORTANT NUMBERS REPORT 2003 MAY, 2003 ACTUAL VS. PRIOR YEAR
ACTIVITY OTHER INFO % Bad Debt % Charity Deductability Ratio W/Bad Debt Volunteer Hours Capitated Lives/Member Months PHO Net Revenue per Employee Inpatient Nursing Unit Costs
Current Month
Budget Month
Prior ariance To ariance To Year Budget Prior Year
1.48% 1.49% 1.52% 2 75% 2.75% 2 77% 2.77% 2 82% 2.82% 61.85% 59.65% 58.53% 4,704.00 4,240.00 5,250.00 14,000.00 14,000.00 13,500.00 10,459.98 10,615.03 10,408.05
-0.02% -0.03% 0 03% 2.20% 464.00 (155.05)
75.18 172.69 18,818.06 4,485.57 7,854.91 1,872.34 7,909.89 1,885.44
71.60 156.26 16,143.28 3,951.45 7,031.83 1,721.21 7,087.45 1,734.82
70.50 161.44 15,379.00 3,876.00 6,771.00 1,706.00 6,882.00 1,734.00
3.58 16.43 2,674.78 534.12 823.08 151.13 822.44 150.62
Budget YTD
Prior YearVariance To YTD Budget
-0.04% 1.83% 1.49% 1.62% 0.34% -0.07% 0 07% 3 40% 3.40% 2 77% 2.77% 3 01% 3.01% 0 62% 0.62% 3.32% 62.32% 59.65% 59.23% 2.67% (546.00) 23,519.00 21,777.00 25,424.00 1,742.00 500.00 70,000.00 70,000.00 66,000.00 51.93 50,672.12 52,438.91 50,076.00 (1,766.79) 420.64 414.20 374.01 6.44
Days In Accounts Receivable by Entity Hospital and Other Home Health MD Total OTHER INFO Drug Expense Per Adjusted Patient Day Other Medical Expense Per Adjusted Patient Day Gross Patient Revenue Per Adjusted Admission Gross Revenue Per Adjusted Patient Day Net Revenue Per Adjusted Admission Net Revenue Per Adjusted Patient Day Expense Per Adjusted Admission Expense Per Adjusted Patient Day
Current YTD
4.68 11.25 3,439.06 609.57 1,083.91 166.34 1,027.89 151.44
69.95 57.36 55.58 69.57
60.00 48.83 80.00 62.21
60.94 48.36 57.57 59.71
9.95 8.53 (24.42) 7.36
65.49 183.26 18,152.20 4,306.84 7,478.99 1,774.49 7,642.06 1,813.18
71.02 152.69 15,928.14 3,897.18 6,935.80 1,697.00 6,878.57 1,683.00
66.32 148.11 15,108.00 3,690.00 6,562.00 1,603.00 6,636.00 1,621.00
(5.54) 30.57 2,224.06 409.67 543.19 77.49 763.49 130.18
38
Instead, let s look at reports that use Instead, let’s look at reports that use key performance indicators as their basis and… expect actions to result i l from every report outcome! y King’s Daughters Medical Center y JPS Health Network y Ingalls Health System ll lh
39
King’ss Daughters Medical Center (Ashland KY) Daughters Medical Center (Ashland KY) – King Vital Statistics FACILITIES: Number of Hospitals in the Health System Number of Total Entities in Health System Total number of licensed beds (hospital only) Annual Admissions Annual Outpatient Visits Annual Emergency Department Visits
1 6 385 23,000 253,000 69,000
FINANCIAL RESULTS: Net Revenues Operating Margin Percentage Days Cash on Hand
$ 312 312,000,000 000 000 7.5% 188.5
PAYER MIX PERCENTAGE: M di Medicare Medicaid Managed Care Other Total
48.0% 48 0% 15.3% 22.5% 14.2% 100.0%
40
King’s Daughters Medical Center (KDMC) King’s Daughters Medical Center (KDMC) – Background y Paul McDowell, CFO y “I cannot think of a more important thing that we do in
Finance than help managers determine their financial outcomes”
y Background – y 5 years at King’s Daughters 5y g g y Previous employment at HMA, a for‐profit health system for five
years. Also at Promina Health System, a not –for – profit system in Atlanta for six years
y “If the host IT system will create the report…great. If they
do not, then the Finance staff will create the report to get actionable points across to the managers” 41
KDMC Reporting Philosophy s Daughters Medical Center has had very good y King King’s Daughters Medical Center has had very good financial success y In the past, the financial reporting was either y Too little or y Too much
y Paul McDowell, the CFO, believes that the reporting of
fi financial information must be: i l i f i b y Consistent y Concise, and y Meaningful
y According to McDowell y “Reporting has helped King’s Daughters to stay focused on p g p g g yf
financial performance in the midst of significant growth” 42
KDMC – Daily Monitor – “Gauging the Pulse” Gauging the Pulse Census Day FRI SAT SUN MON TUE WED THU FRI SAT SUN MON TUE WED THU FRI SAT SUN
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Admits 78 36 29 93 82 96 91 74 26 33 79 104 96 80 69 28 17
ER
IP Days OBS Days Total Occ% Births Admits 343 10 353 90.98% 90 98% 4 27 278 5 283 72.94% 0 39 269 269 69.33% 3 36 327 11 338 87.11% 4 56 323 15 338 87.11% 3 38 335 18 353 90.98% 2 40 375 13 388 100.00% 8 45 339 18 357 92.01% 4 51 282 8 290 74.74% 2 38 286 286 73.71% 0 50 332 13 345 88.92% 6 42 408 12 420 108.25% 6 44 371 15 386 99.48% 4 44 339 12 351 90.46% 2 47 315 11 326 84.02% 2 39 250 4 254 65.46% 65 46% 4 30 239 239 61.60% 1 31
Surgeries
Visits Daily Adm % I/P 149 18 12% 18.12% 48 164 23.78% 9 172 20.93% 13 234 23.93% 20 196 19.39% 44 210 19.05% 50 202 22.28% 42 231 22.08% 39 141 26.95% 17 204 24.51% 2 280 15.00% 46 197 22.34% 61 226 19.47% 71 191 24.61% 44 200 19.50% 49 129 23 26% 23.26% 9 200 15.50% 10
O/P 79 4 4 62 81 24 48 25 2 92 64 91 114 69 6 5
Total 127 13 17 82 125 74 90 64 19 2 138 125 162 158 118 15 15
Cath Lab MRI 45 40 2 21 0 8 48 32 53 42 33 29 44 34 44 41 6 14 3 3 57 31 57 38 50 30 32 38 46 41 4 13 2 11
MTD
1,111
5,411
165
5,576
84.54%
55
697
3,326
20.96%
574
770
1,344
526
466
EOM Proj
2,066
9,690
311
10,002
85.92%
102
1,241
5,930
20.93% 1,074
1,472
2,547
1,000
861
g Budget vs. EOM
1,963 103
8,920 770
415 (104)
9,335 667
80.20%
122 (20)
958 283
5,809 121
16.50% 1,196 (122)
1,705 (233)
2,901 (354)
864 136
845 16
Last Month vs. EOM
2,378 (312)
10,963 (1,273)
366 (55)
11,329 97.33% (1,327)
132 (30)
1,313 (72)
5,946 (16)
22.08% 1,388 (314)
1,975 (503)
3,363 1,006 1,045 (816) (6) (184)
56,606 54,989 1 617 1,617
768 738 30
7,188 5,776 1 412 1,412
34,739 35,007 (268)
20.69% 6,856 16.50% 6,567 4 19% 4.19% 289
YTD Actual YTD Budget YTD Var Var.
12,064 11,430 634
54,156 52,465 1 691 1,691
2,450 2,524 (74)
53.05% 51.54% 1 52% 1.52%
10,457 9,863 594
17,313 16,430 883
5,401 4,968 433
4,894 4,950 (56)
EOM projections are based on a sophisticated model using prior14 day periods and factoring in weekends Sent to CEO and all VPs and Business Office. If the numbers start to fall out of goal range, action can immediately be initiated. Many conservations start with the “Hey, I was looking at the Daily Monitor Report this morning, and…”
43
KDMC – Daily Team Huddle – Fi i lI Financial Issues y
March was a TREMENDOUS record‐breaking month! Way to go Team KDMC… Here’s what you did during the month of March: y y
y y y y y y y
y y
80,765 Laboratory tests performed – an 8% increase over last March’s tests of 74,826. The most tests ever performed in the history of the hospital. 1,388 Surgical Procedures and C‐Sections – an almost 13% increase of the record set in October this year with 1,230 procedures. This is a record number of inpatient surgery procedures for a month month. 1,975 Same Day Surgery Procedures – over 6% increase of last March’s procedures of 1,852. This is a record number of outpatient surgery procedures for a month. 10,495 Radiology Procedures – over 11% increase more than December 2003 record procedures of 9,428. This is another record number of procedures for a month. 3 078 CT Scans – over 10% increase more than last April 3,078 CT Scans over 10% increase more than last April’s record s record setting CT scans of 2,780. Yet another record set in the imaging services department. 1,045 MRI procedures – more than a 15% increase over last March’s record breaking procedures of 907 setting a new record in the history of the diagnostic center. 80 Open Heart Surgeries ‐ an over 8% increase more than the record set in October 2004 of 74. set in October 2004 of 74 1,006 Cath Lab Procedures – an over 4% increase more than the record set in September 2004 with 960 procedures. This is a record in the history of the heart program at KDMC. 182 Angioplasty Procedures – a 5% increase over last March’s record number of 173 procedures. This is yet another record in the history of the heart program at KDMC.
The Daily Team Huddle is prepared each day for each of the different organizational priorities (Customer, Quality, Community, Finance, Culture) - The Financial Issues page is prepared by the Finance Division - Delivered to the staff through department management every Thursday ff ffinancial issues - Different are highlighted each week. It may not just be statistical. (ie. Supply utilization, Overtime monitoring, etx)
Many thanks to all of you who worked so very hard during this M th k t ll f h k d h d d i thi month. KEEP UP THE GREAT WORK!!!
44
KDMC Biweekly KDMC – Activity Report Patient Days Budget
4,231
Gross Revenue
Rev/APD
M/C CMI
M/C Total YTD ALOS ALOS ALOS
ADC
DSCH
Adj Dsch
302
930
1,496
23,817,445
3,499
1.62
5.01
4.22
4.22
Salaries 4,112,951
Sal/APD Sal % Rev 604
18.1%
197,246
Hours
9-Apr
4,740
339
1029
1,583
23,642,413
3,240
1.65
5.12
4.26
4.17
3,788,237
519
16.8%
185,234
26-Mar
4,846
346
1028
1,552
26,311,027
3,597
1.70
5.44
4.47
4.17
3,918,430
536
15.6%
193,351
12-Mar
4,631
331
1076
1,623
25,191,074
3,606
1.66
5.05
4.06
4.14
3,926,091
562
16.4%
193,728
26-Feb
4,850
346
1085
1,639
24,595,750
3,358
1.55
5.08
4.28
4.15
3,949,007
539
16.9%
191,515
12-Feb 12 Feb
4,558
326
1024
1,549
24,293,088
3,523
1.60
4.67
4.19
4.14
3,906,335
567
16.9%
192,272
29-Jan
4,248
303
956
1,481
22,428,151
3,409
1.69
5.11
4.36
4.13
3,930,063
597
18.4%
191,402
15-Jan
4,370
312
942
1,506
23,374,107
3,346
1.71
4.72
3.94
4.10
3,875,184
555
17.4%
192,739
1-Jan
3,258
233
762
1,265
17,355,369
3,209
1.44
4.96
4.27
4.12
3,284,681
607
19.9%
161,567
18-Dec
4,078
291
829
1,335
22,832,786
3,476
1.77
4.97
4.32
4.10
3,880,175
591
17.8%
192,694
4-Dec
3,561
254
806
1,283
19,317,205
3,409
1.62
4.44
3.94
4.05
3,489,176
616
19.0%
172,031
20-Nov
3,882
277
886
1,421
21,193,561
3,404
1.66
4.32
3.90
4.08
4,178,884
671
20.7%
189,003
6 Nov 6-Nov
3 636 3,636
260
848
1 380 1,380
21 389 769 21,389,769
3 615 3,615
1 86 1.86
5 84 5.84
4 38 4.38
4 14 4.14
3 639 902 3,639,902
615
17 9% 17.9%
185 477 185,477
23-Oct 9-Oct 25-Sep 11-Sep 28-Aug 14-Aug 31-Jul 17-Jul 3-Jul 19-Jun 5-Jun 22-May 8-May 24-Apr
3,903 3,589 3,988 3,769 3,757 3,660 3,802 , 3,706 3,610 4,076 3,882 4,113 3,994 4,192
279 256 285 269 268 261 272 265 258 291 277 294 285 299
852 856 931 876 867 876 911 836 887 919 849 879 879 890
1,347 1,407 1,480 1,400 1,422 1,403 1,470 , 1,327 1,434 1,451 1,317 1,361 1,350 1,420
21,644,155 20,509,004 22,161,491 20,438,586 20,031,816 19,589,212 20,388,398 , , 20,032,527 19,477,485 20,748,494 19,630,918 21,087,293 21,276,421 21,539,017
3,507 3,478 3,496 3,393 3,250 3,342 3,324 , 3,405 3,337 3,224 3,260 3,310 3,469 3,220
1.73 1.39 1.76 1.71 1.56 1.59 1.66 1.71 1.63 1.66 1.60 1.73 1.71 1.74
4.46 5.15 4.42 4.82 4.52 4.51 4.84 4.32 4.60 5.18 4.81 5.21 4.83 4.53
3.98 4.07 3.87 3.91 4.00 3.86 4.23 3.74 4.05 4.30 4.36 4.16 4.33 3.96
4.03 4.07 4.20 4.21 4.22 4.23 4.25 4.25 4.27 4.29 4.28 4.28 4.29 4.28
3,583,377 3,554,936 3,623,279 3,592,145 3,590,471 3,494,706 3,472,912 , , 3,443,647 3,448,446 3,458,228 3,392,819 3,508,920 3,456,636 3,434,163
581 603 572 596 582 596 566 585 591 537 563 551 564 513
17.4% 18.2% 17.2% 18.5% 18.8% 18.7% 17.9% 18.0% 18.6% 17.5% 18.1% 17.5% 17.1% 16.7%
182,247 183,685 185,751 181,557 185,106 180,619 180,077 , 175,380 175,706 176,952 171,421 177,557 174,994 174,501
This is sent to all executives and management It is a snapshot of actual versus budget. It helps the organization to review trends. Action can be taken as appropriate. This is sent out 4 – 5 days after the period closes due to pay period closing schedule.
45
KDMC – Biweekly d Productivity Reporting Nursing Facility
DEPT # 12/4 12/18 70200 7.98 9.31
1/1 1/15 1/29 2/12 2/26 3/12 3/26 9.08 9.26 8.16 6.87 8.21 7.39 7.44
BUDG 4/9 HPPD 7.38 7.75
% FTE Var Var 4.80% 0.60
Medical Step Down
70400
8.94
8.78
9.40
8.73
9.32 8.02 7.73 8.04 8.08
8.12
9.00
9.81%
3.58
Resp Step Down
70500
9.19
9.61
10.58
9.91
10.15 9.45 8.83 8.34 9.08
8.71
10.00
12.92%
5.67
Cardiac Surgery Unit
70600
11.89
12.71
13.44
10.96
11.31 10.55 9.94 11.20 10.16
9.53
11.88
19.77%
9.33
Chest Pain Center
70701
13.95
13.41
17.08
12.88
13.40 12.50 11.17 10.51 10.42
10.74
12.04
10.77%
2.18
Surgical g North
70800
11.02
10.66
12.28
10.07
9.93 9.55 8.79 8.10 8.53
9.17
9.60
4.46%
1.45
Cardiac Stepdown
71200
11.14
10.02
9.89
10.06
11.25 9.45 8.91 8.31 8.40
7.94
10.00
20.61%
9.49
Cardiac Cath Recovery
71300
17.93
15.69
29.73
13.84
12.91 13.86 11.92 12.11 13.06
11.95
13.78
13.27%
3.57
Cancer Resource Center
71400
10.12
9.45
9.66
8.44
9.74 7.80 8.13 7.86 9.03
8.10
9.00
10.04%
3.55
Observation
71600
12.20
11.18
13.28
9.75
8.80 8.28 8.16 7.38 7.72
7.75
9.50
18.47%
8.23
Family Practice
71800
9.62
7.59
8.71
8.19
7.96 7.48 7.70 7.13 7.18
7.07
9.00
21.42% 10.35
OBGYN
72000
11.12
9.22
9.39
9.07
10.05 10.79 7.61 8.37 9.28
8.65
9.70
10.79%
NRSY
72200
6.64
5.90
6.74
6.81
8.89 7.06 6.49 7.02 5.78
7.53
7.00
-7.56% (0.66)
Pediatrics
72400
8.90
8.74
9.61
8.72
8.48 8.14 7.65 8.57 8.48
8.19
9.00
9.01%
2.53
R h bili i Rehabilitation
72500
12 63 12.63
13 16 13.16
14 21 14.21
13 15 13.15
12 25 12.80 12.25 12 80 11.67 11 67 11.87 11 87 11.20 11 20
10 72 10.72
11 90 11.90
9 92% 9.92%
5 22 5.22
Behavioral Medicine
72600
12.65
11.64
14.60
10.02
10.51 10.87 9.81 10.41 10.40
9.60
11.00
12.73%
5.74
ICU
73000
25.64
25.09
25.26
24.35
24.19 24.01 23.99 25.08 24.02
24.02
25.50
5.80%
5.69
Cardiovascular ICU
73100
24.43
20.98
27.12
24.43
27.46 26.23 25.99 25.41 24.40
20.78
26.50
21.57%
5.36
NICU
73400
14.57
20.50
22.07
15.74
13.32 18.41 18.20 14.13 16.24
15.71
17.00
7.61%
1.75
1.91
This is a major initiative at KDMC, since salaries are the biggest expense. Productivity reports are sent out 4 – 5 days after the period closes. Departments need to review their variances, high and low, and move back into compliance. Trends are the most important indicators on this page. If trend is down, then written explanations of productivity variances are required.
46
KDMC – Monthly Monthly KDMC Summary of Operations (Key Indicators) King's Daughters Medical Center Summary of Operations Period Ending September 30, 2007 Current Month Actual
Budget
Year To Date % Var Budget
Prior
% Var Prior Yr.
Actual
$785,876 $785 876 $336,229 1.3% 2.9% $139,305,210
$1,085,842 $1 085 842 $856,856 3.9% 4.9% $121,417,035
$846 727 $846,727 $698,907 3.2% 3.8% $114,654,581
-27 6% -27.6% -60.8% -2.6% -2.0% 14.7%
-7 2% -7.2% -51.9% -1.9% -0.9% 21.5%
Consolidated Results: Net Income Operating Income Operating Margin Percentage Total Margin Percentage Cash Balance
1,923 3,131 38.2%
1,635 2,775 40.7%
1,717 2,891 40.2%
17.6% 12.8% -2.50%
12.0% 8.3% -2.01%
King's Daughters Medical Center Results: Admissions Adjusted Admissions O/P Revenue % Total Revenue
49.5% 15.3% 28.4% 6.8%
49.5% 15.7% 29.6% 5.2%
48.8% 15.9% 28.9% 6.4%
0.00% -0.40% -1.20% 1.60%
0.70% -0.60% -0.50% 0.40%
Medicare Utilization Medicaid Utilization Insurance Utilization Self Pay Utilization
4.68 3.93 1 76 1.76 1.41
4.98 4.26 1 56 1.56 1.31
5.25 4.42 1 60 1.60 1.33
6.02% 7.75% 12 82% 12.82% 7.56%
10.86% 11.09% 10 34% 10.34% 6.10%
Average Length of Stay- Medicare Average Length of Stay- Combined Case Mix Index - Medicare Case Mix Index - Combined
$5,866 $5,803 30.36
$5,878 $5,656 28.10
$5,569 $5,380 28.47
-0.2% -2.6% -8.06%
5.3% -7.9% -6.65%
Net Revenue/Adj Admissions (Case Mix Adj) Cost per Adjusted Admission (Case Mix Adj) Total Paid Hours per Adjusted Patient Day
$724,760 1.1% 2.8%
$1,033,800 3.8% 4.8%
$871,438 3.4% 4.1%
-29.9% -2.7% -2.0%
-16.8% -2.3% -1.3%
Net Income Operating Margin Percentage Total Margin Percentage
Budget
Prior
$27 473 861 $27,473,861 $23,536,569 7.5% 8.8% $139,305,210
$14 515 421 $14,515,421 $11,767,513 4.4% 5.4% $121,417,035
$12 510 734 $12,510,734 $12,244,699 4.8% 4.9% $114,654,581
22,921 37,188 37.9%
20,626 34,314 39.5%
20,580 33,587 38.3%
48.0% 15.3% 30.5% 6.1%
49.5% 15.7% 29.6% 5.2%
49.2% 15.8% 29.8% 5.2%
5.00 4.20 1 62 1.62 1.35
4.98 4.26 1 56 1.56 1.31
5.03 4.29 1 57 1.57 1.31
$6,010 $5,557 28.47
$5,814 $5,567 28.14
$5,648 $5,371 28.08
$26,756,117 7.5% 8.8%
$13,861,417 4.3% 5.3%
$12,463,415 4.9% 5.0%
47
KDMC – Monthly Hospital Statistics Report King's Daughters Medical Center Statistical Indicator Report Period Ending September 30, 2007 Current Month Actual
Budget
Prior
Year to Date % Var Budget
% Var Prior Yr
Actual Hospital Volumes Admissions Adjusted Admissions Average Daily Census Surgical Procedures and C-Sections C Sections Same Day Surgery Procedures Open Heart Surgery Procedures Cath Lab Procedures Angioplasty Procedures Emergency Department Visits Deliveries Observation Days Laboratory Procedures Radiology Procedures MRI Procedures Ultrasounds CT Scans Home Health Visits Family Care Center Visits
1,923 3,131 276 1 193 1,193 1,698 66 960 160 5,864 140 474 65,678 8,847 819 1,501 2,751 2,389 9,963
1,635 2,775 251 884 1,330 53 620 99 5,787 107 420 59,110 8,694 848 1,206 2,532 1,911 11,209
1,717 2,891 263 1 009 1,009 1,526 50 596 77 5,880 123 462 62,444 8,972 848 1,380 2,658 2,583 10,642
17.6% 12.8% 9.7% 35 0% 35.0% 27.7% 24.5% 54.8% 62.1% 1.3% 30.8% 12.9% 11.1% 1.8% -3.4% 24.5% 8.6% 25.0% -11.1%
12.0% 8.3% 4.9% 18 2% 18.2% 11.3% 32.0% 61.1% 107.8% -0.3% 13.8% 2.6% 5.2% -1.4% -3.4% 8.8% 3.5% -7.5% -6.4%
2,391 , 5.33 30.36 $2,551 $20.11
2,102 , 4.93 28.10 $2,556 $20.40
2,209 , 5.00 28.47 $2,527 $19.91
-13.8% -8.1% -8.1% 0.2% 1.4%
-8.2% -6.7% -6.7% -1.0% -1.0%
53.6 5.9%
59.5 5.2%
60.3 2.9%
10.0% -0.6%
Hospital Credit & Collections 11.2% Net Days in Accounts Receivable -3.0% Bad Debt & Charity % Total Patient Revenue
10.60% $1,631
10.05% $1,417
11.39% $1,559
-0.5% -15.1%
Hospital i Supply S Management 0.8% Supply Expense % of Total Patient Revenue -4.6% Supply Expense per Adjusted Admission
Hospital Labor Costs Total FTE's,, Includingg Contract Employees p y FTE's per Adjusted Occupied Bed Total Paid Hours per Adjusted Patient Day Salary Expense per Adjusted Admission Average Hourly Wage
Budget
Prior
% Var Budget
22,921 37,188 283 13 359 13,359 19,260 697 9,338 1,602 69,398 1,465 5,093 798,613 108,122 9,679 17,303 32,213 29,589 130,540
20,626 34,314 260 11 790 11,790 17,462 620 7,160 1,140 67,048 1,286 5,104 710,270 107,178 9,537 15,600 29,710 28,897 135,020
20,580 33,587 260 11 771 11,771 17,169 576 6,984 1,125 67,094 1,313 5,039 705,946 104,592 9,187 14,797 28,997 29,153 109,923
11.1% 8.4% 8.5% 13 3% 13.3% 10.3% 12.4% 30.4% 40.5% 3.5% 13.9% -0.2% 12.4% 0.9% 1.5% 10.9% 8.4% 2.4% -3.3%
2,289 , 5.00 28.47 $2,524 $20.26
2,140 , 4.94 28.14 $2,539 $20.21
2,089 , 4.93 28.08 $2,468 $19.67
-7.0% -1.2% -1.2% 0.6% -0.2%
53.6 5.3%
59.5 5.2%
60.3 4.7%
10.0% -0.1%
10.21% $1,505
10.01% $1,408
11.39% $1,371
-0.2% -6.9%
48
KDMC Monthly KDMC – Departmental Statistical Report 71400 Cancer Resource Center Period Ending Marchc 2007
CURRENT MONTH Actual Flex Bud Last Year Flex Var 717 9 726
YEAR TO DATE Actual Flex Bud Last Year Flex Var
Pct DAYS & STATS DAYS OP STATS TOTAL STATISTICS
676 19 695
, 6,142 8.46 34.8
6,534 , 9.00 37
5,587 , 8.04 31.6
392 0.54 2.2
6 6 5.95
441.38
455.08
446.78
-13.7
-3.01
174.1 16.09 193.08
195.75 16.49 217.02
166.28 12.33 184.02
21.65 0.4 23.94
11.06 2.43 11.03
HOURS HOURS/STAT FTES
3,661 86 3,747
Pct
3,740 156 3,896
33,800 , 9.02 32.6
33,723 , 9.00 32.5
32,043 , 8.22 30.9
-77 -0.02 -0.1
-0.23 -0.22 -0.31
TOTAL REVENUE/STAT
439.7
450.21
442.01
-10.51
-2.33
SALARIES/STAT SUPPLIES/STAT TOTAL EXPENSES/STAT
185.69 16.47 206.74
193.32 16.75 215.48
168.75 16.67 193.86
7.63 0.28 8.74
3.95 1.67 4.06
49
KDMC – Monthly Productivity Graph HPPD StaffingTornado FYTD thru March 2007 for Nursing Units
Goal 0 0.00% 00%
Clinic al Res ource Team
28.2% 11.9% 11.6%
Labor & Deliv ery Neonatal ICU
7.6% 6.1% 5 5% 5.5% 4.6% 4.3% 3.9% 3.0% 1.1% 0 5% 0.5% 0.3%
Family Prac tic e Respiratory Step-Down Cardiov ascular ICU Cardiac Surgery Unit Newborn Nurs ery Obs tetrics /Gynec ology Pediatric s Medic al Step-Down Behav ioral Medic ine Obs erv ation
-0.2% -0.6% -0.8% -1.4% -2.8%
Cancer Resourc e Center Cardiac Step-Down Surgery /Ortho ICU Cardiac Cath Rec ov ery Rehabilitation Skilled Nursing Ches t Pain Unit
-6.2% -6.8% -8.6%
15.0% 0% -10 10.0% 0% -15
-5 5.0% 0%
0 0% 0.0%
5 0% 5.0%
10 0% 10.0%
15 0% 15.0%
20 0% 20.0%
25 0% 25.0%
30 0% 30.0%
35 0% 35.0%
This is used by executives and management to quickly show the department that did…or did not, meet their productivity goals. This is also used at the monthly leadership meeting for all the divisions. It is meant to create peer pressure and competition. “Nobody wants to be in the red,” according to Paul McDowell.
50
JPS Health Network (Fort Worth TX) – JPS Health Network (Fort Worth TX) Vital Statistics FACILITIES: Number of Hospitals in the Health System Number of Total Entities in Health System Total number of licensed beds Total admissions Annual Outpatient Visits Annual Emergency Department Visits
1 25 459 19 453 19,453 683,000 63,700
FINANCIAL RESULTS: Net Revenues Operating Margin Percentage Days Cash on Hand
$ 433 433,892,000 892 000 8.3% 181
PAYER MIX PERCENTAGE: Medicare Medicaid Managed Care Charity Unisnsured
16.0% 37.0% 6.0% 29.0% 12.0%
Total
100.0%
51
JPS Health Network – Background gg y Gale Pileggi, CFO y “We owe it to our county residents to be the most efficient and
effective facility we can possibly be. I believe that the proper reporting of information can help this greatly. Before I came here three years ago, very little reporting took place. A culture change was in order” h i d ”
y CFO at JPS for three years y Background in two different for‐profit systems, over 11 years; 15 years in
a non‐profit Children’s Hospital
y JPS is a Hospital District, where Ad Valorem Taxes provide a
substantial amount of tax money ($205 million) to the operation of the facility. y If the facility is able to operate more efficiently, the government If the facility is able to operate more efficiently the government money will be utilized to generate y More volumes (community goal) y At lower unit costs y Investment in capital equipment and facilities I i i l i d f ili i
52
JPS – Types of Financial Reports y Daily ‐ “the usual” y Volumes y y
Inpatient days, admissions and discharges O Outpatient volumes – i l generally charge based ll h b d y
“Managers are directed back to their daily statistics if they argue about their biweekly or monthly volumes”
y Charge edit reports
y Weekly y CEO Executive Operating Summary y y
This has the elements from the monthly board and administrative reports with weekly actual and budget information reports – This is used to determine that the organization stays within its goals on a timely basis, not waiting for the monthly report generation, when it is too late to affect the outcomes
53
JPS – Types of Financial Reports y Biweekly y Labor Reporting y
Productivity reporting y p g y
“We invested a lot of time in developing productivity standards and we expect the management team to achieve these standards on a biweekly basis. Our management team find these reports invaluable in measuring past performance and planning future staffing. We believe i h in these reports more than the monthly labor reporting, because the h h hl l b i b h accruals on the monthly reports include estimates that distort the variance analysis., while the biweekly totals are real.”
y Monthly y y Board Finance Package y
Prepared for and sent to Administrators and Board members
y Department Manager Package p g g
54
JPS – JPS Use of Benchmarks y JPS has used labor benchmarks developed by a h dl b b h k d l db
consulting firm y Recently joined one of the big three hospital yj g p b benchmarking firms to expand on the use of labor h k f d h fl b and non labor benchmarks y JJPS sets its benchmarked goals for new metrics g f th h at the 50 h percentile l y There is a steady movement of this percentile goal from the 50 g f 5 th to the 75 75th,, as the JPS J administration believes that they can and d b l h h d should be considerably better than the median. 55
JPS – Daily D S i i R i Department Statistics Reporting Departmental Stats - Units
4/27/2007 14
Actual Labor Hours - Productive Overtime Actual Labor Dollars - Productive Overtim Actual Overtime Rate/Hour
4/28/2007 16
4/29/2007 17
4/30/2007 18
5/1/2007 16
7 330 45
19 856 45
28 777 27
22 780 36
5/2/2007 16
5/3/2007 14
Actual Labor Hours - Productive Regular Actual Labor Dollars - Productive Regular Actual Regular Rate/Hour
217 4,679 22
181 3,770 21
158 3,167 20
173 4,406 25
156 4,064 26
190 4,152 22
215 4,744 22
Total Actual Productive Hours Total Actual Productive Dollars Actual Productive Rate/Hour
217 4,679 21.58
188 4,100 21.82
177 4,023 22.70
202 5,183 25.69
178 4,843 27.21
190 4,152 21.87
215 4,744 22.11
22 24 15 11 334 257
22 24 12 11 256 257
23 24 10 11 237 257
26 24 11 11 288 257
27 24 11 11 303 257
22 24 12 11 259 257
22 24 15 11 339 257
g Productive Hours Budgeted Actual Productive Hours Productive Hours Variance Efficiency Variance Cost
152 217 -65 -1,539
173.60 188 -14 -339
184.45 177 7 171
195.30 202 -6 -154
173.60 178 -4 -104
174 190 -16 -384
152 215 -63 -1,487
Budgeted Productive Dollars Actual Productive Dollars Productive Rate Variance
5,141 4,679 462
4,455 4,100 355
4,203 4,023 180
4,784 5,183 -399 399
4,220 4,843 -623 623
4,500 4,152 349
5,088 4,744 344
-1,077
16
350
-553
-727
-35
-1,143
Actual Productive Rate/Hour Budgeted Rate/Hour Actual Productive Hours/Unit Budgeted Productive Hours/Unit Actual Productive Cost/Unit Budgeted Productive Cost/Unit
Total Variance Favorable (Unfavorable)
This daily report is available, online, to the department managers, by mid morning of the following day. Managers are expected to check the recorded volumes l andd ensure that they are correct. Managers are not able to complain about their monthly statistics if they have not been reviewing their daily statistical indicators.
56
JPS – Weekly Executive Report Executive Report Current Period Actuals 2003
Current Period Actuals Oct 2004 2004* Actuals*
Nov 2004 Actuals*
Dec 2004 Actuals*
Jan 2005 Actuals*
Feb 2005 Actuals*
Mar 2005 Actuals*
4/1-4/2*
4/3-4/9*
4/10-4/16* 4/17-4/23*
Admits
15,007 2,083 5 814 5,814 256 41.1
16,815 2,077 5 947 5,947 264 45.9
1,500 145 525 25 48.4
1,501 147 470 23 50.0
1,540 151 494 26 49.7
1,503 173 454 20 48.5
1,397 170 456 26 49.9
1,533 184 427 27 49.5
4.8 16.4 1.5 6.3
5.1 17.8 2.9 6.4
5.2 16.6 3.9 6.9
5.0 17.5 4.0 6.4
4.8 16.4 4.5 5.9
5.2 21.5 4.6 6.2
5.3 15.0 4.2 7.4
5.2 16.6 4.2 7.2
71,890 13,722 16,496 4,200
85,583 14,479 17,436 4,689
7,800 1,182 1,684 415
7,451 1,017 1,189 402
7,422 1,117 1,424 426
7,864 1,219 1,411 430
7,335 1,290 1,169 391
7,955 1,430 1,294 448
71,075 12,335 17,100 4,283 194.7 33.8 46.8 11.7
86,131 12,941 17,712 4,671 235.3 35.4 48.4 12.8
7,793 1,038 1,718 416 251.4 33.5 55.4 13.4
7,490 990 1,213 402 249.7 33.0 40.4 13.4
7,448 1,042 1,429 426 240.3 33.6 46.1 13.7
7,863 1,089 1,407 432 253.6 35.1 45.4 13.9
7,309 1,135 1,161 392 261.0 40.5 41.5 14.0
7,927 1,267 1,290 446 255.7 40.9 41.6 14.4
3,101 3,291
3,745 3,607
319 326
365 311
274 261
362 268
318 301
Acute Care Admits Behavioral Admits Newborn Admits SNF Admits Avg Acute Admits
74 7 24 4 37.0
333 36 104 4 47.6
329 40 83 4 47.0
347 38 113 4 49.6
6.4 6.3 3.5 10.1
5.2 26.3 4.9 6.2
5.5 25.8 4.6 6.9
5.5 25.8 4.5 6.4
475 75 87 25
1,738 298 315 105
1,798 312 268 103
1,902 302 283 103
476 64 87 27 238.0 32.0 43.5 13.5
1,745 262 314 105 249.3 37.4 44.9 15.0
1,765 285 270 103 252.1 40.7 38.6 14.7
1,888 268 283 104 269.7 38.3 40.4 14.9
10 21
65 45
95 91
88 71
27 199 84 60 19 1,251
102 1,105 312 263 73 8,115
99 1,231 269 234 104 8,510
116 1,243 340 245 84 8,446
LOS Acute LOS SNF LOS Medicaid LOS Medicare LOS Patient Days Acute Days B h i lD Behavioral Days Newborn Days SNF Days Census Acute Census Behavioral Census Newborn Census SNF Census Avg Acute Census Avg Behavioral Cen Avg Newborn Cens Avg SNF Census Surgical Procedure
373 Inpatient Surgeries 325 Outpatient Surgerie Other Statistics
5,262 51,881 13,380 13,975 0 369,348
5,984 54,028 13,510 14,447 1,072 396,473
572 4,512 1,236 1,231 427 33,717
497 4,221 1,198 1,062 370 32,286
490 4,474 1,182 1,093 442 31,120
452 4,548 1,267 1,089 322 34,100
473 4,044 1,218 1,079 324 34,010
431 4,941 1,304 1,122 363 38,334
294,885.3 301,048.7 595,934.0 807.9 824.8 1,632.7
395,003.3 261,616.1 656,619.4 1,079.2 714.8 1,794.0
42,337.5 27,260.9 69,598.4 1,365.7 879.4 2,245.1
39,697.2 25,537.7 65,234.9 1,323.2 851.3 2,174.5
41,291.2 25,391.0 66,682.2 1,332.0 819.1 2,151.0
43,030.0 27,417.9 70,447.9 1,388.1 884.4 2,272.5
40,006.2 26,021.7 66,027.9 1,428.8 929.3 2,358.1
45,277.4 30,797.4 76,074.8 1,460.6 993.5 2,454.0
Deliveries ER Visits Psych ER Visits OB Triage Visits Cath Lab Procedur Clinic Visits Financial Inpatient Revenue
2,517.4
Outpatient Revenue 1,228.1 Gross Revenue
3,745.5
Avg Inpatient Reven 1,258.7 Avg Outpatient Rev
614.0
Avg Gross Revenue 1,872.7
9,492.5 10,309.9 10,201.3 6,368.2 6,991.2 6,986.4 15,860.7 17,301.1 17,187.6 1,356.1 1,472.8 1,457.3 909.7 998.7 998.1 2,265.8 2,471.6 2,455.4
This report was created to give the CEO a snapshot of key indicators in a timely manner. It prepares the administrators for the monthly outcomes. It is used as an action report, requiring the managers to take remedial action to achieve monthly goals. “Ongoing staffing is driven by changes to this report,” according to the CFO.
57
JPS – Biweekly Labor Report Volume Adjusted Variances ‐ Dollars Salary and Wage Report Productive Only Volume Adjusted Variance Analysis Pay Period Ending Mar 13, 2007 YTD Routine Areas Units
Admin LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE
Cost Center CC612 CC618 CC619 CC621 CC622 CC626 CC640 CC646 CC648 CC650 CC651 CC654 CC663 CC668 CC670 CC761
Cost Center Name Budget PROGRESSIVE CARE WEST 3 382 3,382 TOWER FIVE 3,404 TELEMETRY NORTH 2,704 TOWER SEVEN 4,609 PROGRESSIVE CARE EAST 3,515 TOWER ELEVEN 2,787 ICU 3,019 2 SOUTH 3,215 2 NORTH 3 127 3,127 NEWBORN NURSERY 3,464 NEONATAL ICU 2,509 1,324 CONTINUING CARE NURSERY TOWER SIX 4,346 TOWER TWO 3,180 LABOR & DELIVERY 4,449 SKILLED NURSING FACILITY 2,362
Actual 3 557 3,557 3,843 2,583 4,168 3,548 2,746 3,007 2,614 3 201 3,201 4,183 3,060 489 4,302 2,809 4,316 2,317
Salary and Wage
Var 175 439 (121) (441) 33 (41) (12) (601) 74 719 551 (835) (44) (371) (133) (45)
Budget 841 740 841,740 658,578 636,128 959,343 893,136 522,754 1,699,252 599,276 517 795 517,795 386,537 1,031,576 214,146 823,695 722,888 1,422,463 344,807 12 274 117 12,274,117
Actual 988 240 988,240 777,915 688,838 975,706 962,671 594,487 1,667,444 772,056 617 292 617,292 467,996 1,259,186 52,010 804,362 628,994 1,301,131 370,161 12 928 489 12,928,489
SW per Unit
Var 146,500 146 500 119,336 52,710 16,363 69,535 71,733 (31,807) 172,780 99 496 99,496 81,459 227,609 (162,136) (19,333) (93,895) (121,332) 25,354 654 372 654,372
Budget 248 89 248.89 193.47 235.25 208.15 254.09 187.57 562.85 186.40 165 59 165.59 111.59 411.15 161.74 189.53 227.32 319.73 145.98
Actual 277 83 277.83 202.42 266.68 234.09 271.33 216.49 554.52 295.35 192 84 192.84 111.88 411.50 106.36 186.97 223.92 301.47 159.76
Var 28 94 28.94 8.95 31.43 25.95 17.23 28.92 (8.33) 108.95 27 25 27.25 0.29 0.35 (55.38) (2.56) (3.40) (18.26) 13.78
Both this report (dollars) and the report on the next page (hours), are used extensively by the administrators to ensure that the managers are meeting their biweekly labor goals. These reports have even greater significance than the monthly labor reports because they d nott contain do t i any monthly thl accruals. l (A (Accruals l are “kill “killers” ” according di tto th the CFO) The administrators rely on this report rather than the monthly report because it is - More timely, and - “absolutely accurate”
58
JPS Biweekly Labor Report Biweekly Labor Report JPS – Volume Adjusted Variances ‐ Hours Payroll Hours Report Productive Only Volume Adjusted Variance Analysis Pay Period Ending Mar 13, 2007 Routine Areas
Units
Admin
Cost Center
Cost Center Name
LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE LOWE
CC612 CC618 CC619 CC621 CC622 CC626 CC640 CC646 CC648 CC650 CC651 CC654 CC663 CC668 CC670 CC761
PROGRESSIVE CARE WEST TOWER FIVE TELEMETRY NORTH TOWER SEVEN PROGRESSIVE CARE EAST TOWER ELEVEN ICU 2 SOUTH 2 NORTH NEWBORN NURSERY NEONATAL ICU CONTINUING CARE NURSER TOWER SIX TOWER TWO LABOR & DELIVERY SKILLED NURSING FACILITY
Budget
Actual
301 285 237 386 300 244 260 222 216 209 175 92 360 273 279 203
294 327 214 358 296 230 242 184 237 270 205 76 365 262 279 198
Hours
Var
(7) 42 (23) (28) ((4)) (14) (18) (38) 21 61 30 (16) 5 (11) 0 (5)
Budget
3,106 2,455 2,272 3,290 3,295 , 2,119 4,960 2,206 1,762 1,122 2,947 790 2 972 2,972 2,373 4,514 1,378 41,563
Hours per unit
Actual
Var
3,328 2,907 2,512 3,509 3,339 , 2,140 4,912 2,067 2,160 1,529 3,478 209 3 141 3,141 2,425 4,346 1,434 43,437
222 451 240 219 44 21 (48) (138) 398 408 531 (581) 168 51 (168) 55 1,874
Budget
10.32 8.62 9.59 8.52 10.98 8.69 19.08 9.94 8.16 5.37 16.84 8.59 8 26 8.26 8.69 16.18 6.79
Actual
11.32 8.89 11.74 9.80 11.28 9.30 20.30 11.24 9.11 5.66 16.97 2.75 8 61 8.61 9.25 15.58 7.24
Var
1.00 0.27 2.15 1.28 0.30 0.62 1.22 1.30 0.96 0.30 0.13 (5.83) 0 35 0.35 0.56 (0.60) 0.45
See previous page for discussion on importance of this page
59
JPS Biweekly Departmental Productivity Biweekly Departmental Productivity JPS – Report
Labor Dollars - Productive Contr Contract Rate/Hour
Labor Hours - Productive Overtim L b Dollars Labor D ll - Productive P d ti Overt O t Overtime Rate/Hour
230 7,667 7 667 33
2 879 2,879
230 4,788 4 788 33
4,064 131,054 131 054 32
Labor Hours - Productive Regula Labor Dollars - Productive Regul Regular Rate/Hour
2,664.74 62,262.31 23
3,001.05 71,081.26 24
(336.31) (8,818.95) (0)
45,149.88 1,081,660.11 24
Total Productive Hours Total Productive Dollars Total Productive Rate/Hour
2,894.58 69,929.56 24
3,001.05 73,960.17 25
(106.47) (4,030.61) (0)
49,213.67 1,212,714.28 25
24.16 12.98 314
24.64 10.60 261
(0.49) 2.38 52
24.64 11.39 281
13,056.60 (1,406.61) 11,650
13,056.60 (1,406.61) 11,650
84,014.58 10,462.51 94,477
((15,680.60)) (4,030.61)
((15,680.60)) (4,030.61)
37,533.42 132,010.51
(303.34) (6,127.81) 0.44 2 49 70 49.70
52,833.96 1,325,363.54 25.09 12 306 80 306.80
9,762 1,320.85 11,083.19
59,996 39,485.78 99,481.50
Productive Rate/Hour Productive Hours/Unit P d ti Cost/Unit Productive C t/U it Hours Variance Rate Variance Spending Variance Volume Variance Total Variance - Productive Productive and Non Productive H Payroll Dollars Productive and N Total Rate/Hour Total Hours/Unit Total Cost/Unit
3,002.58 75,050.73 25.00 13 336 55 336.55
Hours Variance Rate Variance Total Spending Variance
9,762 1,320.85 11,083.19
3,305.92 81,178.54 24.56 12 286 85 286.85
This biweekly labor report is sent to the department managerss on a manage timely basis. The managers are expected to meet their labor goals. l Actions are initiated if the goals are not met.
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JPS – Monthly Administrative & Board Monthly Administrative & Board JPS Reporting Page ‐ Key Financial Ratios FYE 2007
Aa Rating
8.3%
3.3%
Current Ratio
3.5
1.8
Days of cash on hand
207
225
192
225
Accounts Receivable days
59 #
56
Debt-to-Capitalization
12%
34%
Operating Margin
Days of cash on hand (excluding self insurance trust funds and prior year adjustments in FY03)
See next page
# Three month average
This is one of the first pages of the monthly Board report. It was developed to give the Leadership a snapshot of the hospital’s financial position. In fact, these ratios were determined based on the ratios used by the BOND RATING AGENCIES, and are set to achieve high ratings. The current bond ratings for JPS are: Moody’s A2 Standard and Poors AA
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JPS ‐ Monthly Board Reporting Debt‐to‐Capitalization (%) 66.20%
70.00% 60.00%
51.00%
50.00%
39.80%
40.00%
33.60%
30.00% 17.67% 16.06%
20 00% 20.00% 10.00% 0.00%
14.67%
12 16% 12.16%
6.65%
FY 2001
FY 2002
FY 2003
FY 2004
06 Proforma
Aa
A
Baa
