Industry Experience – Penn Medicine MIS /30/2014 Michael McKenna Department Accountant

2 Penn Medicine  Developed in 2001 Consolidated hospital entities and SOM to create a powerful umbrella governance structure  Quick facts Nation’s first hospital, medical school Ranked #1 in region. #7 in nation; U.S. News and World Report SOM top 5 in nation (16 consecutive years) 175 ‘top docs’ Philly Mag ’14 21,000+ Employees 2,200+ physicians

3 Penn Medicine Major Revenue & Cost Streams  Revenue Streams ($4.3 bil - FY13) Net Patient Revenue ($3.55 bil) –= Charge – insurance payments (contractual agreement) – patient payments Research ($749 mil) –Grants ($583 mil): Sponsored money from national institution e.g. NIH ($392 mil) –Gifts/Endowments: ($166 mil) ○ Gifts: donated money to particular area (e.g. med school alumni gift to University) ○ Endowments: donated for to particular area with designated purpose, (e.g. fund for Alzheimer's research)  Cost Streams Direct costs –Dollars tied to billable services or research projects –IET support (Revenue allocated to departments to support them) Indirect costs –Marketing –Overhead –Space/Rent –Capital Construction –Administration salaries –Malpractice insurance

4 My Role: Full-Time Accountant  Standard accountant duties - uPenn and hospital) Department expense recon Salary management, fund reallocations, payroll coordination Faculty productivity reporting, budgeting GL inquiry, journal entries etc.  Where does MIS come in?? Data warehousing on uPenn side and hospital side Webi report building for University side Data mining and drill down reporting for hospital side Penn Medicine “Accountant” Accounting & Finance HealthCare background Information Systems UMIS PennWorks SAP business objects Oracle - BEN Lawson (Infor ERP) SAP Business objects Oracle – Hyperion, SmartView Lawson (Infor ERP) SAP business objects McKesson – Horizon Performance Management SAP – Business Objects Hyperion ESSBASEUHC FPSC

5 Accountant in-action  from Chief Operating Officer: “Mike, can you please pull the 4 th quarter new patient visits at all satellite locations this year compared to last year” Source of that info: Excel embedded multi-dimensional database Drill deeper to find satellite locations Simplify it and think like them

6 “I Am Penn Medicine”  Penn Medicine Vision Provide Excellent Patient Care. –Transparent faculty reporting helps them be more productive. –Detailed reporting leads to efficient marketing and compliance decisions. Provide environment that promotes creativity and rewards teaching. –Used business intelligence reports to automate manual expense recon. process. Educated corporate on the idea of saving time and money using Webi. –Educated management on financial reporting and excel techniques; interns on revenue cycle, data retrieval, and Excel. Strive to be a world leader in advancing medical science by continually improving the quality and impact of its research. –Continuously revamping department’s research fund and principal investigator reporting. –Assisting in the rollout of an SOP for online grant submission to improve pre and post award process for a grant.

7 FOX Core Curriculum Work  Business Communications BA2196 Concision and effectiveness – oral, written  Enterprise IT Architecture MIS2501 Communication to higher entities  Data Analytics MIS2502 Analyzing data –Retrospective data projects –Forecasting, budgeting Data Visualization  Data Innovation and Design MIS3504 Being a business analyst in any situation Seeing processes with an “improvement” state of mind

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