1. Special Financial Report
PINNACLE CASE 2017 //
Special Financial Report
Laurajeanne Fligor and Courtney Young

2. PINNACLE SPEAKER PROFILE
LAURAJEANNE FLIGOR
Manager
DHG Healthcare
Cleveland, OH

3. Pinnacle Case Deliverables and Timeline
Monday
Tuesday
Wednesday
Thursday
DELIVERABLE
Enterprise Report
(focus: Strategic and
Clinical Considerations)
Financial Health and Performance Report
Team Preparation //
Executive
Status Report
Team Delivery //
TIME COMMITMENT
Analysis & Discussion: 30 mins.
Deliverable Production: 30 mins.
Report Out: 30 mins.
Analysis & Discussion: 45 mins.
Deliverable Production: 45 mins.
Presentation: 25 mins
Q&A: 10 mins
Feedback: 10 mins.
REQUIREMENTS
Deliverable: 10 minute video
Delivered by no more than 3 team members who are part of Healthcare Finance, Reimbursement, Revenue Cycle and Compliance, Assurance, Transaction Advisory Services, IT Advisory, DHG Search and PSG
Deliverable: 15 minute zoom discussion with Wellton CFO
Delivered by no more than 3 team members who are part of National Strategy Practice, Enterprise Intelligence, Tax, IT Advisory, DHG Search and PSG
Presentation using no more than five slides:
Three prepared
Two team created
Derived from the findings from the first two deliverables with additional emphasis on Risk Capability, Enterprise Performance Optimization and DHG Healthcare's services
Only Pinnacle Team members
Full team engagement
Three month engagement focused on playbook development for Wellton’s 2025 Vision

4. Financial Health and Performance Report
Prepare a 15 minute zoom call with Wellton CFO to discuss key financial, tax and governance considerations for execution.
Team reports should respond to the following:
What potential challenges may impact the governance structure?
What tax considerations should Wellton be aware of when partnering and expanding value-based care payment models and programs?
What is the trend in reimbursement rates and expense inflation?
Do the forecast assumptions make sense based on the trends DHG knows about today?
What is Wellton’s liquidity/balance sheet ratios?  Will Wellton be able to borrow money if they need to implement their vision?
What is the likely payer mix for your initiative?  As a DSH hospital, will that change based on this initiative?
What other volumes might be impacted? 
What expenses will be increased or reduced by this initiative?
Zoom calendar invites will be sent during lunch today.

5. PINNACLE SPEAKER PROFILE
BIO PIC
Courtney Young
Principal, Healthcare Finance
DHG Healthcare
Gaithersburg, MD

6. Key Financial Considerations for Healthcare Providers
5, 10, 15+ years of strong margins have left many clients (and advisors) complacent.  A drastically changing landscape requires a comprehensive understanding of how organizations generate revenue.
Expense inflation outpacing reimbursement increases
State budget shortfalls
Quality penalties
Low/non-existent Medicare rate increases
High deductible insurance plans leading to bad debt
Movement to outpatient setting
Larger populations covered by governmental payers
What does this mean for a provider’s ability to negotiate?
What incentives are driven by different patient populations?
Industry Consolidation shrinking the historical market
Technology ROI
Physician Productivity

7. Relevance to Risk Capability
FOUNDATIONAL ELEMENTS
Innovation Acceleration
Clinical Assets
New Infrastructure
Population Health
Scenario Planning & Dynamic Financial Modeling
Leadership & Culture
Governance
CRITICAL GOALS
Responsible Confidence in Economic Portfolio Transition
Thoughtful and Deliberate Response to Market Forces
Meaningfully Positive Community and Patient Clinical Impacts
Organizational Preparedness and Transformational Agility
Committed Governance and Collaborative Culture
Alignment of Mission & Strategy with Pursuit of Value-based Care

8. Pinnacle Finance Reference Guide

9. Key Questions
What is the trend in reimbursement rates (i.e. what is happening with contractuals)?
What is the trend in expense inflation?
What is happening with payer mix and what are the implications?
How were the assumptions derived and do they match historicals? 
Do the assumptions make sense based on the trends DHG knows about today (e.g. Medicaid budget issues, aging population)?
What is Wellton’s liquidity/balance sheet ratios?  What do the ratios mean? Will Wellton be able to borrow money if they need to implement their vision?
What is the likely payer mix for your initiative?  As a DSH hospital, will that change based on this initiative?
What other volumes might be impacted?  (e.g. Referrals, OP Ancillary)
What expenses will be increased or reduced by this initiative?

10. Case Study Points – Areas of Focus
Accurate and thoughtful connection to Risk Capability 2.0
Accurate description of Wellton's financial position
Compelling and logical articulation of key financial metrics
Compelling articulation of Wellton's execution risks and recommendations to address risks
Followed direction and submitted content on time

11. COURTNEY YOUNG LAURAJEANNE FLIGOR PRINCIPAL GAITHERSBURG // MD
LAURAJEANNE FLIGOR
MANAGER
CLEVELAND, OHIO //