1. Presented by: Mark J. Higley V-P, Regulatory Affairs VGM Group, Inc.
Think Differently! Future Landscape in Healthcare and Benchmarking Updates
Presented by:
Mark J. Higley
V-P, Regulatory Affairs
VGM Group, Inc.

2. Today’s Objectives
To understand the future of healthcare and how it may pertain to your business.
To gauge where you stand amongst your peers in KPI’s.
To have a better understanding of incremental growth.
To discover new ideas for your business.

4. The Current/Future Landscape
Affordable Care Act (ACA)
Accountable Care Organizations (ACO’s)
Primary Care Physician becomes center of Medical Homes Model
Increased Audits
Fee-For-Service migrating to Outcomes-based Medicine
Value-Based Purchasing
Bundled Payments
Population Health
Hospital Readmission Reduction Program
Narrowing Networks
Collaborative Efforts
BY % of Hospital payments will not be fee- for-service

5. Facts About the Future of HealthCare
Mobile Care
Remote monitoring
Data analytics
Merger mania
Integrated information systems
Baby Boomers- disposable income45k/year

6. Baby Boomers
74.9M boomers
50% of population over 50 by the end of 2017
Targeted by marketing ONLY 5- 10%
Spending to increase in 20 yrs. by $4.74T

7. More on Boomers 82% belong to a social networking site
Spend more time online than millennials
70% of the disposable income controlled by boomers

8. How Does This Impact My Business?
Mobile Care
Remote monitoring
Workforce
Chronic care management (CCM)
Data Analytics
Value based models

9. Think Differently! Disease management Collaborations Partnerships
Distribution
Retail
Other businesses

10. Learn How to Think Different
Differently = innovators
Connecting the unconnected
Innovators spend 50% more time thinking different
Why not spend more time?
80% of adults find it difficult or exhausting
Grew up being punished not praised
Be like a 4 year old

11. Learn How to Think Different
Just do it
Shake it up
Repeat, repeat, repeat
Ask…
How often do I brainstorm?
Hunt for new solutions?
Will you?

12. How Entrepreneurs Think Differently
Challenges are opportunities
Competitors are research subjects
Everything requires effort
Perfection is the enemy
There is magic
It is a lifestyle

13. Benchmarking

14. Payer Mix as a % Gross Revenue

15. Revenue per FTE- VGM Members

16. Revenue Per FTE

17. Personnel Costs as a % of Gross Revenue

18. Size of Company by Gross Revenue

19. Net Income as a % of Gross Revenue
This is pre-competitive bidding rural roll out!

20. Current Ratio

21. A/R Turnover Ratio

22. Days Sales in A/R

23. Inventory Turnover Ratio

24. Days COG in Inventory

25. Debt to Equity Ratio

26. Inventory Frequency

27. Cycle Count Frequency

28. Key Performance Indicators (KPIs)
Personnel costs as a percentage of revenue
Branch operations costs as a percentage of revenue
Cost of goods/products as a percentage of revenue
Days to: bill, collect, deliver
Per unit cost on key activities: Intake, Billing a claim
Key volume metrics, like masks per patient per year, percentage of orders filled, accessories as a percentage of base
Revenue per patient
Lifetime value of a patient equipment type
Length of stay
Lincare Oxygen LOS-26 months

30. Things to Consider Patient Pay- Collect Up Front! Distribution model
Specialty capital items for hospitals & institutions
Pain Relief
Specialty athletics
Home Modifications
Specialty Vehicles
Wallet growth
Distribution model
Dropship
Challenge all staff- How can we do things differently?
Look at other industries to compare your business
It is ok to fail

31. Vice-President, Regulatory Affairs
Questions?
Mark J Higley
Vice-President, Regulatory Affairs
VGM Group, Inc.
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