Transcript University of Alabama Health Services Foundation, P.C.

University of Alabama
Health Services Foundation, P.C.
A brief glimpse inside a
Faculty Practice Plan...
Not a Typical MD Practice
• Tax Exempt 501-C-3 Organization
• A bona fide corporation
• “Shareholder value and earnings” not in annual
distributions but for
– program development / expansion
– compensation / expenses for operation
– retention for business downturns
• MDs are “fully employed / only here”
A Brief View of our History
• Founded in 1973
• As a physician-led company
– Superior Patient Care
– Group Practice in an Academic Environment
– Establish Funds for Program Development
• The era was ripe for such activities
– Medical Practice Plans birthed out of “university anxieties”
The “Stages of our Growth”
• 1970s - a benefit plan and tool to bill and
collect professional revenue
• 1980s - organizational development
– University Affiliation
– Ambulatory Clinics
– Complete Health Joint Venture HMO
• 1990s - corporate style behavior
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The Kirklin Clinic - $110 million investment
UAB Prime Care
Sale of Complete Health
UAB Health System
Board of Directors
• Purpose
– Develop major policy and strategy
– Provide a balanced perspective to our goals
– Recruit key executives and hold them accountable
for success
• Membership
– 10 public members (“outside directors”)
– 9 physician leaders (“internal directors”)
– Executive leadership
Public Board Members
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Eddie Adair
Dr. Neal Berte
Donald James
Charles McCrary
Charles Perry, Jr.
Thomas Lowder
Van Richey
Lee Styslinger, III
Mimi Head
Tim Brown
Cordova Ventures
Birmingham Southern College
Vulcan Materials Company
Alabama Power Company
Highland Associates
Colonial Properties Trust
American Cast Iron Pipe Company
Altec, Inc.
Ram Tool and Supply Company
TALA Professional Services
Executive Leadership
• A uniquely balanced and important
partnership of MD / business leadership
• Corporate service functions
– General Counsel, Finance, Human
Resources, Treasury, Corporate
Compliance, et al
UNIVERSITY OF ALABAMA
HEALTH SERVICES FOUNDATION
Corporate Services
UAHSF
Board of Directors
Clinical Services Managed by
UAB Health System
UAB
Health System
Executive Officers
Sergio Stagno, M.D.,
President
Reid F. Jones
Executive Vice President
Director
Insurance
Risk
Management
Executive
Director
Human
Resources
Chief
Financial
Officer
General
Counsel
Management
Services
Organization
Senior
Vice
President
TKC
Chief
Information
Officer
Financial Overview
• Extremely strong Balance Sheet
– $408 cash and investments, $210 debt
• Net Patient Revenue
2012B
$338
2011P 2010A
$321
$312
• Total Revenue
$424
$401
$389
$ in Millions
9
Total Payor Mix
Blue Cross Blue Shield
Medicare
Medicaid
Commercial Insurance
Viva
Self Pay
Other
34%
18%
12%
4%
11%
6%
15%
UAHSF Expense Structure
Other Expenses
TKC, TKC Acton and Other
Total, Direct Costs
80,523
18.51%
62,312
14.32%
369,442
84.92%
3,539
0.81%
7,734
1.78%
TKC Indirect Costs
HSF Admin.
HSIS
MSO
7,030
1.62%
17,369
3.99%
Total, Indirect Costs
35,672
8.20%
5,984
1.38%
5,523
1.27%
5,000
1.15%
1,950
11,499
0.45%
2.64%
435,070
100.00%
Common Fund
Group, EHR and Special Funds
General Endowment Fund
Mission Support
Occupancy Costs
Total Expenses
11
General Endowment Fund
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The Successful Failure
Over $100 million dollars
Research Initiatives
Creation and Implementation of the MSO
Faculty Recruitment
Scope of Services Portfolio
• Offers services in 32 clinical specialties
… primary and specialty care
• Employs 920 physicians and 1,800 nonphysician employees
• 22nd largest employer in the State of
Alabama
Service Locations
• Have the “clinical franchise” for
physician services at UA Hospital
• Also provide services at other hospitals,
in TKC, at selected regional clinics, and
in “local offices”
• The Kirklin Clinic Acton Road
The Kirklin Clinic
Opened June 15, 1992
• 554,000 Square Feet
• Clinic Encounters
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683,000 in 2007
699,000 in 2008
711,000 in 2009
709,000 in 2010
669,000 in 2011
*based on TKC Patient Encounter Report