1. WMC Performance Improvement
Trends and Plans

9. Watauga Medical Center FY 2008 Improvement Plan* Impact
Actual 8
Months
FYTD
Current
Run Rate
*Improvement
Initiatives
Revised E/A
@9/30/08
Net Revenue
61,082,000
91,622,000
282,000
91,904,000
Operating Expenses
61,456,000
92,184,000
514,000
91,670,000
Operating Margin
(374,000)
(562,000)
796,000
234,000
Non-Operating Revenue
1,689,000
2,000,000
Net Income (Loss)
$1,315,000
$1,438,000
$796,000
$2,234,000

10. Watauga Medical Center FY 2008/2009 Improvement Plan
Impact
2009
Revenue Enhancement
282,000
1,952,000
Expense Reduction
514,000
2,464,000
Total
$796,000
$4,416,000

11. Watauga Medical Center FY 2009 Proposed Budget Target (from Operations)
2008
2009
Change
Net Revenue
91,622,000
94,245,000
2.86%
Expenses
92,184,000
95,812,000
3.90%
Operating Margin
(562,000)
(1,567,000)
Improvement
Initiatives
796,000
4,416,000
$ ,000
$ ,849,000
3.00%

12. FY 2008/2009 Performance Improvement Initiatives
Reduce Travel / Education
Raise Cafeteria Prices to cover total actual food costs
Improved supply chain management
Reduce Agency Staff Utilization
Manage staffing against local and national benchmarks
Health Insurance Modifications
Lost Charges Capture Program
Improve Quality of Coding
Additional Opportunities will be found by collaborating with frontline staff

13. Who’s Been to the Grocery Store Lately?
This year’s food budget is $1,000,000.00
Does that surprise anyone?
We need to cover food costs
When was the last time the Dining Room had an across the board price increase?

14. Weight Comparisons
Maran

15. Travel/Education
Major impact: Off-site conference attendance ($45,000 year end savings)
CE’s provided by medical center: Netlearning CBLs, Competency Fairs, Monthly NW-AHEC videoconference programs, Department specific, ACLS/BLS/PALs
Directors flexibility to target specific department needs
Critical/new/change in job skills required by the medical center will be considered
Tuition reimbursement process unchanged
Majority, if not all, of your required continuing education hours can be obtained at the medical center.

16. Health Insurance Changes
Health Plan History
No individual premium increases during last three plan years.
Premiums for dependent coverage have gone down for the last two plan years.
No plan changes since Jan, 2006
Health Changes for FY2009 (communicated in Oct)
Increase in bi-weekly premiums (effective Jan, 2009)
Plan Changes (effective January, 2009)
Higher annual deductible
Higher out-of-pocket limit
Higher co-pays for physician visits
Implement hospitalization co-pay
Renegotiation of reinsurance contract

17. Charge Capture Example
Reimbursement System
DRG Fixed – 68%
% of Charges – 32%
Charge Capture Example
Gross Charges $62,000,000.
% Collection 70%
$43,400,000.
Error Rate 5%
Lost Revenue $2,170,000.

18. Marketing Cost Containment Plan
There are over 150 forms used by departments of Watauga Medical Center
Think strategically about the forms your department is utilizing to determine if form is still needed, could it be utilized differently, in a more effective manner?
Contact the Marketing Department to discuss new ideas for form utilization