Charting A New Course In Healthcare Management

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Charting A New Course In Healthcare Management
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Presentation Introduction

• Key Management
• The Prime Healthcare Story
• About the Prime Healthcare Services Foundation
• Plan and Proposal for San Leandro Hospital

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Management Expertise

• Prime has substantial experience in the
  acquisition, turnaround and management of
  community based hospitals.
• Primes Management Team is dedicated to the
  implementation of the highest standards in
  providing patient care.
• Brief Introduction to the Management Team and
  History of Primes Growth will illustrate our
  commitment to what San Leandro Hospital can
  expect.

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Key Management

• Prem Reddy, M.D., FACC, FCCP Chairman of the
  Board
• Lex Reddy, MBA, MHA, CEO
• Roger Krissman MBA, CFO
• Suzanne Richards, RN, VP Nursing and Clinical
  Affairs
• Allen Stefanek, MBA, VP - Operations
• Michael Sarrao, Esq, VP - General Counsel
• Radha Savitala Asst. General Counsel
• Lloyd Wilensky, VP Health Plan Operations
• Pat Silvestri, Chief Facilities and Development
  Officer
• Gigi Douglass, Director, Clinical Laboratory
• Seetha Reddy, Director, Imaging Services
• Marie Falcis, Director, Performance Improvement
• Sreekant Gotti, Director, IT Services
• Lea Ann Rohdes, Director, Medical Staff
• Ann Abe, Director, Nutritional Services
• Ajith Kumar, Director, Reimbursement Mgmt.
• Ken Wheeler, Director, Patient Financial Services

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Mission Statement

• Our mission is to provide comprehensive, quality
  healthcare in a compassionate, convenient, and
  cost-effective manner.

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The Prime Healthcare Story
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Prime at a Glance

• A diversified healthcare management company
  headquartered in Victorville, CA
• Charting a new course in hospital management
  that is Physician-driven and patient-focused
• Founded by Prem Reddy, MD, FACC, FCCP, a
  practicing cardiologist and healthcare
  entrepreneur

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Putting New Life into California Hospitals
Prime has a proven track record of acquiring
financially distressed hospitals in California
which serve a critical role in the communities in
which they are based and turning them
around. The hospitals include
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Desert Valley Hospital

• 83 bed acute care facility, built de novo in 1994
• Awarded coveted Accreditation with Commendation
  from the Joint Commission, in its first year of
  operation
• AOA Accreditation with 99.5 (2004) and 99.8
  (2005) of achievable scores

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Setting the Standard for Success
Desert Valley Hospital, Primes first hospital
has received the following accolades Top 100
Hospital in the Nation four times 2003, 2004,
2006 2008 Top 1 in the Nation, Premier/
CareScience
Select Practice National Quality
Leader, 2007 Highest scores from Joint Commission
and AOA surveys
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Chino Valley Medical Center

• 126-bed Acute Care Facility in Chino, CA
• Open staff community hospital
• ED with over 100 patient visits per day
  paramedic base station
• Accredited teaching facility for Family Practice
  Residency training program affiliated with all
  Osteopathic medical schools

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Sherman Oaks Hospital The Grossman Burn Center

• 153-bed acute care facility located in Sherman
  Oaks, CA
• Tertiary burn center and home to the world
  renowned Grossman Burn Center
• A top performing Hospital in the Nation in a
  survey by The Commonwealth Fund for CMS/Medicare
  in Hospital Quality Index (Core Measures)
• Open staff community hospital with prestigious
  medical staff that are on the faculty of UCLA/
  USC Medical Centers

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Montclair Hospital Medical Center

• 102-bed Acute Care Facility in Montclair, CA
• Open staff community hospital with basic
  emergency care
• Centers of excellence in women and maternity care
  

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Huntington Beach Hospital

• 144-bed Acute Care Facility in Huntington Beach,
  CA
• Open staff community hospital with advanced
  surgery facilities
• Emergency Department serves as paramedic base
  station
• Newly added Cardiac Cath Lab facility

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West Anaheim Medical Center

• 219-bed Acute Care Facility in Anaheim, CA
• Open staff community hospital with newly expanded
  ER
• Multi-specialty hospital with open heart surgery,
  psychiatry care, etc.
• Top 100 Hospital in the Nation in 2008

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La Palma Intercommunity Hospital

• 131-bed Acute Care Facility in La Palma, CA
• Open staff community hospital with basic
  emergency care
• Centers of excellence in women and maternity care
  
• Cardiac Cath Lab, psychiatry care, etc.

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Paradise Valley Hospital

• 104 year old, 301-bed Acute Care Facility in
  National City, CA
• Open staff community hospital with basic
  emergency department
• Centers of excellence in rehabilitation medicine
• Largest behavioral health care provider in South
  Bay area of San Diego County
• Cardiac Cath Lab, 64 Slice CT, psychiatry care,
  etc.

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Centinela Hospital Medical Center

• 370-bed Acute Care Facility in Inglewood, Los
  Angeles
• Open staff community hospital with busy emergency
  department serving underprivileged communities in
  Los Angeles
• Centers of excellence in orthopedic care,
  neurosurgery, high risk obstetrics and neonatal
  intensive care unit, etc.
• Tommy Lasorda Heart Institute a comprehensive
  cardiac program

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Encino Hospital Medical Center

• 151-bed Acute Care Facility in Encino, Los
  Angeles
• Open staff community hospital
• Centers of excellence in orthopedic care,
  geropsych, etc.

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San Dimas Community Hospital

• 93-bed Acute Care Facility in San Dimas, CA
• Open staff community hospital
• Acquired in July 2008 from Tenet Healthcare

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Garden Grove Hospital and Medical Center

• 167-bed Acute Care Facility in Garden Grove, CA
• Open staff community hospital
• Full-service state-of-the-art obstetrics program
  and neonatal intensive care unit
• Acquired in June 2008 from Tenet Healthcare

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Shasta Regional Medical Center

• 246-bed Acute Care Facility in Redding, CA with
  Open staff community hospital
• Saved by Prime Healthcare from closure in Nov
  2008 and obtained licensure in less than eight
  days and accreditation in less than 45 days of
  acquisition
• State-of-the-art cardiac program and centers of
  excellence in orthopedic care, wound care, etc.
• Recently accredited by Joint Commission for
  Stroke Care

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The Prime Model for Effective Healthcare Delivery
Physician-Driven Management Patient-Focused
Pathways Outcome Oriented Protocols
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Basic Ingredients

• Patient/Physician Driven Health Care
• Focus on quality patient care and achieving 100
  compliance with Medicares Core Measure
  Initiatives
• Capital Infusion
• Reduce unnecessary lengths of stay (LOS)
• Improve ER efficiencies (goal average time is 2
  hours)
• Decrease in saturation/diversion time and LWOBS
• Operational efficiencies
• Improve Plant Aesthetics

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Core Measures

• Medicare Hospital Quality Index
• (CORE Measures)
• Acute Myocardial Infarction
• Pneumonia
• Congestive Heart Failure

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Core Measures
Source CMS www.hospitalcompare.hhs.gov 2007
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Core Measures
Source CMS www.hospitalcompare.hhs.gov 2007
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Core Measures
Source CMS www.hospitalcompare.hhs.gov 2007
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Improvement Highlights

• Expansion or construction of new service areas
  (Emergency Services, Cath Lab Surgery, POC
  Labs, etc.)
• State-of-the-art digital (filmless) radiology
  (PACS)
• New supply and pharmacy automation system (Pyxis)
• Patient monitoring systems and patient care
  equipment (beds, IV pumps, Telemetry, etc.)
• New or upgraded equipment (radiology, lab, etc.)
• Employee and patient safety equipment (security
  systems, lifting equip., etc.)
• Enhancement or new health information systems
  Medi-Tech Client Server, HPF, Hospital Portal
  System

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About Prime Healthcare Services Foundation

• The Prime Healthcare Services Foundation is a
  501(c)(3) non-profit corporation formed in 2006
  by Dr. Prem Reddy
• The Prime Healthcare Services Foundation operates
  free health clinics which serve indigent and
  uninsured patients
• The Prime Healthcare Services Foundation has
  assets of more than 60 Million with no
  liabilities and expectations of substantial
  growth in its assets over the next ten (10) years
• The Prime Healthcare Services Foundation will
  form a subsidiary to lease and operate San
  Leandro Hospital as a non-profit hospital

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Primes Plan for San Leandro

• Prime will continue to maintain the Emergency
  Department
• Prime will continue to operate San Leandro
  Hospital as an acute care facility
• Prime will work with HMOs and insurance companies
  to negotiate contracts
• Capital investments in infrastructure
• New Health Information System (Medi-Tech)
• Operate San Leandro As Non-Profit Hospital

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Primes Proposal for San LeandroFacility Lease

• Prime will lease the facility for an initial term
  of Ten (10) Years with options to extend the
  lease.
• Prime will make an annual lease payment to the
  District.
• Prime will have an option to buy the facility at
  the end of five (5) Years.
• Prime will spend no less than 20 Million for
  working capital, equipment and other capital
  improvements at San Leandro Hospital during first
  year of lease.
• Prime will provide a Security Deposit equal to
  two (2) years of lease payments.

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Primes Proposal for San Leandro Employees,
Licensure Accreditation

• Prime will hire substantially all of the
  employees.
• Prime will assume the existing Collective
  Bargaining Agreements with the Unions.
• Prime will keep San Leandro open as an acute care
  hospital with 24 hour access to Emergency
  Department Services under an independent and
  separate license.
• Prime will maintain accreditation for the
  hospital with The Joint Commission.

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Access to care for the community

• Prime will participate in Medicare and Medi-Cal
  Programs.
• Prime will negotiate contracts with HMOs, PPOs
  and Third Party Payors, as long as San Leandro
  Hospital is offered the same or better rates as
  Sutter, for the same level of services.
• Prime will maintain the independent medical staff
  currently in place and work with the medical
  staff to improve the quality of care and
  establish a goal of 100 compliance with
  Medicares Core Measures.

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Governance

• Prime will form a local Governing Board
  consisting of Community Members, Local
  Physicians, and a representative from the
  Healthcare District, if so desired.

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Commitment to Community

• Prime will keep the Emergency Room open at San
  Leandro Hospital and improve efficiencies in
  order to reduce wait times, lengths of stay,
  Saturation/Diversion Hours in ER and Wall Time
  for Paramedic Transports.
• Prime will not delay or deny emergency care based
  on a patients condition or ability to pay.
• Prime will provide charity care at levels
  consistent with San Leandro Hospitals historical
  levels on per bed occupied basis.

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Questions and Answers