San Joaquin General Hospital Funded Depreciation and Number of Days Cash Available Policies and Procedures San Joaquin General Hospital French Camp, California May 31, 2009 San Joaquin General Hospital French Camp, California June 23, 2015

New SJGH Financial Policies San Joaquin General Hospital (SJGH) has several long-term liabilities or potential liability commitments and needs funds to support future projects Replacement of 1932 Inpatient Towers Building: $32 million Investment in new Information Systems Electronic Health Record system: More than $10 million Current or contingent liabilities: In excess of $56 million  AB 85 Realignment Take Back  Medi-Cal Cost Reports and P-14 Workbooks

New SJGH Financial Policies Recommendation: SJGH create a separate General Ledger account: Board Designated Funded Depreciation  Allow SJGH to fund the purchase of future assets and to pay for significant liabilities or contingent liabilities when needed Recommendation: SJGH adopt Number of Days Cash Available Policy  Goal is to maintain a minimum of 30 days cash on hand  Funds will be held in County Treasury Pool and will be managed by the County Treasurer