University of Illinois Mile Square Health Center South Shore Business Plan

University of Illinois at Chicago Mile Square Health Center (UIC-MSHC) UIC-MSHC is a Federally Qualified Health Center affiliated with the University of Illinois at Chicago Medical Center. It is one of the largest community health centers in the city of Chicago. It is managed and staffed by health professionals from the University of Illinois, and has a Board of Directors, 51% of whom are residents of the Near West Side of Chicago. UIC-MSHC offers a comprehensive array of Medical Care and Social Services which includes Family Practice, Obstetrics and Gynecology Care, Family Planning, Podiatry, Pediatric, Optometry, Nutritional Services, and a Specialty Clinic dedicated to sexually transmitted diseases. Medical services are provided on a sliding fee scale for patients who possess limited or no medical insurance.

Mission Statement The Mission of the University of Illinois at Chicago – Mile Square Health Center is to provide holistic, quality health care services to a diverse urban community with a continuing commitment to addressing the needs of the underserved. The concept of holistic services includes not only actions to restore health, but also those to prevent disease, promote healthy lifestyles and provide personalized support to individuals and families. In achieving this mission, we acknowledge that our clinical involvement extends well beyond a “building” and into the heart of the community. We acknowledge our responsibility to treat all we serve with dignity and respect regardless of worldly status, race, ethnicity, or individuality. We accept the challenge to excel in this endeavor. We recognize that to do so requires a commitment to excellence, flexibility in mind, spirit and clarity in communication. To Provide Family Focus Care.

Goals To increase primary health care for underserved population. To increase market share of UIC-MSHC. To increase market share of University of Illinois at Chicago Medical Center in Pediatric and Obstetric & Gynecology sections. To increase profitability of UIC-MSHC.

Organizational Structure University of Illinois Board of Trustees UIC-MSHC Board of Directors Office of the Executive Director Hospital Administration John J. DeNardo UIC-MSHC Executive Director Henry Taylor Asst. to Executive Director Kimberly W. Jordan Chief Operating Officer Vary Arrington Chief Financial Officer Inn Lee Medical Director Tamarah Duperval, M.D. Community Health Director Patricia Cooley Human Resources Director Gloria Mango

South Shore Community Source: www.CityofChicago.org

University of Illinois at Chicago-South Shore Health Center Location: 7131 South Jeffrey Boulevard, Chicago 60649 Services: Primary Medical Care Services: General Primary Medical Care, Urgent Medical Care, Family Planning, Diagnostic Laboratory, Diagnostic Tests/Screens OB/GYN: Gynecological Care, Obstetrical Care Dental Services: Preventive, Restorative, Emergency Specialty Services: Podiatry, Optometry and Cardiac monitoring services will be referred to UIC-Mile Square Health Center or the University of Illinois at Chicago Medical Center

Market Analysis Demographic Characteristics Total Population Male Male % Female Female % Yr 2000 54,520 23,789 43.6% 30,731 56.4% Yr 2008 55,968 24,690 44.1% 31,278 55.9% Difference 1,448 901 3.8% 547 1.8 % Target Market: Female population; ages 0-44 and 65 + Male population; ages 0-17 and 65 + Analyze the size of potential market as well as its growth rate. Target Population % of Total Population Male Male %* Female Female %* Yr 2000 33,327 61.1% 9,580 28.7% 23,747 71.2% Yr 2008 33,051 59.0% 9,915 30.0% 23,136 70.0% Difference -276 0.8% 335 3.5% -611 2.6% * % of target population Source: U.S. Census Bureau

Market Analysis Demographic Characteristics (Continued) Race Percent White Alone 1.4% Black Alone 97.3% Native American 0.2% Asian Alone 0.5% Multi-Racial 0.6% Hispanic (All races) 1.2% Total Minority 98.8% Hispanic or Latino and Race Percent Hispanic or Latino (of any race) 1.2% Mexican 0.7% Puerto Rican 0.2% Other Hispanic or Latino 0.3% Not Hispanic or Latino 98.9% White Alone 1.4% Age Number Percent Under 5 4,197 7.7% 35 to 44 8,395 15.4% 5 to 9 4,579 8.4% 45 to 54 6,978 12.8% 10 to 14 3,816 7.0% 55 to 59 2,453 4.5% 15 to 17 2,235 4.1% 60 to 64 2,290 4.2% 18 to 19 1,527 2.8% 65 to 74 3,544 6.5% 20 to 24 3,712 6.9% 75 to 84 1,908 3.5% 25 to 34 8,341 15.3% Over 85 545 1.0% Source: U.S. Census Bureau; Missouri Census Data Center

Market Analysis Socio-Economic Characteristics Population Density: 18,279 Person per Sq. Mile Household Income: Total Households 23,571 Median Household Income $27,699 Average Household Income $36,361 Other Income Measures: Median Family Income $31,228 Average Family Income $41,789 Per Capita Income $15,889 Poverty: % of Poverty Threshold Number of Persons % of 54,520 Total Population 1-49% Below 7,831 14.5% 50-99% Below 6,374 11.7% 100-200% 11,579 21.5% Total 25,784 47.3% Source: U.S. Census Bureau; Missouri Census Data Center

Market Share Analysis

Competition Insight U of I at Chicago Jackson Park U of Chicago Advocate Trinity Provident-Cook County Northwestern Memorial Number of Beds/Type (Set Up): Total 436 249 560 219 113 696 OB/GYN 45 18 44 28 90 Pediatric 33 2 62 8 12 Percentage of Patients by Payor Source: Medicare 23.8% 26.5% 27.2% 24.3% 16.5% 28.9% Medicaid 38.5% 61.3% 27.8% 21.4% 29.0% 11.6% Commercial 29.8% 4.2% 41.0% 32.8% 9.0% 41.2% Self Pay 3.3% 1.6% 0.0% 8.1% 45.4% 3.0% Other/Unknow 4.6% 6.4% 4.0% 13.5% 15.4% Source of Admission: Referral 54.8% 21.6% 53.4% 33.8% 3.2% 56.3% Transfer Hospital 6.0% 0.1% 4.4% 2.5% Transfer Skilled Nursing Facil. 0.2% Transfer Other Emergency Room 39.1% 78.0% 37.8% 61.7% 88.6% 40.9% Other 0.5% Utilization: Deliveries 1,991 320 3,078 1,951 780 8,158 Total Admission 17,409 8,603 27,231 14,478 6,259 45,361 ER Patients 49,098 23,689 68,085 39,921 53,880 62,182 Outpatients Served 433,485 34,235 397,769 9,806 77,594 264,610 Top-Three Zip Codes of Patient Origin: 60608 60623 60624 60619 60649 60637 60617 60628 60609 60615 60653 60610 60611 60614 Source: 2001 Hospital Profiles from City of Chicago Public Database

Industry Analysis Structure of Target Population in Health Care Industry in South Shore Area: A total number of persons between 200% of poverty threshold and below is 25,784. A total number of existing IDPA persons is 17,745. Among this number, 9,022 represents IDPA adults and 8,723 represents IDPA children. There are currently no Federally Qualified Health Center (FQHC) sites in the area. Existing Health Care Resources: Hospitals Jackson Park Hospital & Medical Center 7531 S. Stony Island 60649 Distance from our location: 1.1 miles Hospital-affiliated Health Centers Advocate Health Center-South Shore (Advocate Health Care) 1818 E. 71st Street 60649 Distance from our location: 1.0 mile Jackson Park Family Health Center (Jackson Park Hospital) 7501 S. Stony Island 60649 Distance from our location: 1.2 miles Jackson Park Senior Health Center (Jackson Park Hospital) 1625 E. 75th Street 60649 Distance from our location: 0.9 mile South Shore Outpatient Senior Health Center (University of Chicago Hospital) 7101 S. Exchange 60649 Distance from our location: 0.8 mile Discuss the structure of the health care industry that we are targeting. Who are the buyers and the sellers? Who are the suppliers? What is the market chain of the industry? How would we diagram it? Is the industry in a growth mode? Source: Illinois Department of Healthcare and Family Services; Chicago Department of Public Health’s Community Profile

Market Opportunity Consider the opportunity in the market. Where is that part of the market broken or inefficient? How does it create an opportunity for us? Where is the problem that our business will solve?

Solution What is our solution to the problem in the marketplace? How does our service benefit the marketplace? Why is our solution unique from others? Do we have a competitive advantage that can be sustained?

Marketing Plan Represents an overview of our marketing plan. How are we going to attract customers? Are there vital marketing possibilities we can exploit? What unique marketing advantages do we have? What important alliances can we develop?

Financial Projections Initial Investment: Family Medicine Dentistry Total Build Out $50,000 $100,000* Equipment $138,536 $164,770 $303,306 $188,536 $214,770 $403,306 * See Details in Appendix A-1 Projected Statement of Income: Family Medicine* Dentistry** Consolidate*** Yr 1 Yr 2 Yr 3 Revenues $1,218,644 $1,969,796 $2,256,603 $359,223 $525,352 $543,262 $1,577,867 $2,495,148 $2,799,865 Expenses $1,210,407 $1,740,089 $2,068,893 $312,471 $361,285 $370,623 $1,522,878 $2,101,374 $2,439,516 Net Income $8,237 $229,707 $187,710 $46,752 $164,067 $172,639 $54,989 $393,774 $360,349 The projection of revenues and expenses from the business. *, **, and *** See Details in Appendix A-2 Source: UIC-MSHC Finance Division

Financial Projections Family Medicine Break Even Source: UIC-MSHC Finance Division

Financial Projections Dentistry Break Even Source: UIC-MSHC Finance Division

Appendix A-1: Initial Build Out Budget Family Medicine Dentistry Total SBC (Telephone Installation) $7,200 $14,400 ADT (Security System Installation) $3,440 $6,880 Building (Clean-Up) $6,400 $12,800 Reconstruction of Areas $17,000 $34,000 Signage $8,000 $16,000 Leasehold Improvements $7,960 $15,920 $50,000 $100,000 Source: UIC-MSHC Finance Division