1. Accounting & Finance Department Overview
Presented by: Tiffany Smiley, Director of Accounting
Emmy Nteziryayo, Director of Finance
Chad Osborn, Senior Financial Analyst

2. Accounting & Finance Emmy Nteziryayo Tiffany Smiley Gina Singleton
Director Financial Accounting & Reporting
Tiffany Smiley
Director of Accounting
Gina Singleton
Accounting Administrator
Kimberly Davis
Accounting Manager
Mary Ann Crouch
Sr. Accounting Manager
Chad Osborn
Sr. Analyst
Julie Gervais
Accounting Manager
Laura Weimar
Sr. Accountant
Brittany Meredith
Sr. Accountant
Jordan Perry
Sr. Accountant
James Everett
Staff Accountant

4. Accounting Team What we do
Key Objective:
To ensure accurate and timely delivery of financial results presented in accordance with GAAP to our customers
Customers:
Executive Team
Operational and Clinical Leaders
Board of Directors
Investors
Government and Regulatory Authorities
Auditors

5. Accounting & Finance Team Challenges
Rapid pace of acquisitions & integration work, scale
from 14 states, 32 provider markets, 65 locations in Q3-2014
to now 31 states, 96 markets, 151 locations
Systems and process improvement projects had to be paused
GL & AP system conversion Jan-2016
Financial close and reporting data must be sourced currently from 7 clinical/billing systems
Cerner, HCHB- 2 instances, Consolo, Carevoyant, Allscripts, EZ Claims
and various other systems and third parties
Workday, Cowan (benefits), other vendors, 3 separate banks

6. Month-end Financial Close Cycle
Day 3: Accounts Payable close
Day 4: Billing Team close
Days 5 – 8: Accounting Team books revenue into GL from billing systems.
Days 4 – 8: Accounting Team accrues any expenses that AP was not able to post in time.
Days : FP&A and Accounting review key line items at program level to determine if adjustments need to be made.
Day 11: Financials presented to CFO & Accounting completes close.
Day 12: Results overview to Executive Team. Finance distributes financials to operational leaders.
Days 13-14: Operational financial review meetings

7. Accounting Team Goals for 2017
To consistently hit the delivery target for distribution of financials and accelerate the close process
Continued improvement on program level analytics in coordination with the FP&A
Published Accounting resources and guidance on iConnect
“Who to Contact” list on iConnect

8. Accounting Methodology
Adhere to GAAP
Generally Accepted Accounting Principles
Difference between Accrual Basis and Cash Basis Accounting?
The main difference between accrual and cash basis accounting is the timing of when revenue and expenses are recognized.
The cash method accounts for revenue only when the money is received and for expenses only when the money is paid out.
The accrual method accounts for revenue when it is earned and expenses goods and services when they are incurred. The revenue is recorded even if cash has not been received or if expenses have been incurred but no cash has been paid. Accrual accounting is the most common method used by businesses.

9. Common Questions How do Accruals impact my financials?
Accruals are either an estimate based on a defined methodology or an actual invoice that was provided after AP close. Accruals will always reverse out the next month and the actuals will show up in the next month’s financial statements.
When an invoice posts to my financials, when is it actually paid?
When AP keys an invoice to your P&L, that does not necessarily mean the invoice has been paid. This only means that AP has keyed the expenses, and it has been added in the queue to pay. We pay vendors based on agreed terms (Net 10, 30, 45, etc).

11. Financial Planning & Analysis Team What we do
Main objective:
Provide the data you need in order to make informed decisions and show you a path towards achieving your targets.
Information available today:
Financial Reports
Business Intelligence Tools
Financials Reports
BI Tools
Revenue drivers
KPIs
Revenue adjustments
Labor tool
Direct / variable costs
Forecast templates
Indirect / fixed costs
Quality metrics
Statistics and ratios

12. 2017 Income statement Overview – Program x

13. KPI Summary Category KPI Detail Regulatory Discharge ALOS
Average / Median / % > 180 Days
Discharge LOS by SOC
Home / NH / ALF / Inpatient
BP1 Admissions
Cap Cushion / (Liability)
Quality
Visit Duration
By discipline
Productivity
# of visits per FTE (by discipline)
Patient Utilization
Weekly visits per Patient (by discipline)
Growth
ADC by SOC
Admissions by SOC
ADC / Admission Ratio
# of Referral
Admissions Conversion Rate / Admits per HCC
Financial
Revenue Per Patient Day
Revenue Adjustments
Write-offs / Cap Liability / Charity Care Adjustments
Margin %ages
Pt Care costs / G&A costs / margin % of revenue
Miscellaneous
Diagnosis Mix (Admissions)
Kidney / Liver / Cancer / Lung / Heart
Discharges
Deaths / Live (Eligibility, Revocations/Transfers)

14. Task – Program A vs Program B
Which program is performing better:
Compare operating margins (consider rate differences)
ADC / Admission ratios
Main call outs by comparing the summary KPIs:
Discharge ALOS and ADC / Admit ratio correlation
Growth – factors driving ADC increase or decline
Sales productivity
Admissions by diagnosis and referral sources
Death discharge %
Task: Identify opportunities of increasing margins / areas of concern
Program A
Program B

15. Collaboration – Partners in Success
Accounting & Finance
KPIs
Financials
Bi-directional feedback
Operational Leaders

16. Collaboration – Your input
How can we help you achieve your goals and objectives?
What else do you need? How can we help you get it? What is it worth?