Critical Access Hospital - Gold Standard Performance
Transcription
Critical Access Hospital - Gold Standard Performance
Presentation to: CAH Executive Leaders Critical Access Hospital Gold Standard Performance Summary 2004/2005 Report Based on 2003 Data LarsonAllen A Road Map to Gold Standard Performance April 4, 2006 Presentation Overview • Report background — Data analyzed — Capturing the “Best Performers” — Other information • Insights into Industry Performance — “Value” of CAH Status — Financial and Operational Performance Metrics — CAH Status: A License to Spend? • Financial and Operating Performance Characteristics and Gold Standard & Top Performing CAHs • A Road Map to Gold Standard Performance • Implementing the Gold Standard Performance Paradigm — Key attributes to keep in mind © 2006 Larson, Allen, Weishair & Co., LLP 2 Introduction to CAH Gold Standard Performance Summary Gold Standard Performance. At LarsonAllen that term is synonymous with Success. LarsonAllen’s Critical Access Hospital Gold Standard Performance Summary© report was issued in September 2005. The Report is a comprehensive study on financial performance of the nation’s most successful Critical Access Hospitals based on comparative financial analysis of over 750 Critical Access Hospitals, demographic review of rural communities, and interviews with leaders of Gold Standard Performing Critical Access Hospitals. We believe this report highlights a number of policy and operational issues facing rural health providers. We also believe this report will facilitate discussions amongst Critical Access Hospital leaders about opportunities to continue to improve performance while continuing to meet the challenges of providing high quality health care. © 2006 Larson, Allen, Weishair & Co., LLP 3 Background on Data Analyzed • • • • Comprehensive assessment of financial and operational performance characteristics of Critical Access Hospitals across the country Data obtained from 2003 and 2002 Medicare Cost Report information 750 reports analyzed, 634 used in preparation of ratios and benchmarks Performance of multiple groups was analyzed — — — — — • All CAHs Large Hospitals (>$11M Net Patient Revenues) Small Hospitals (<$5.5M Net Patient Revenues) Mid Size Hospitals ($5.5M to $11M Net Patient Revenues) Different pricing and cost profiles Multiple financial and operational performance indicators evaluated — — — — — — — — Profitability Cash and Net Asset Position Utilization Staffing Cost Performance Overall Pricing Overall Discount Rates Revenue and Cost Relationships © 2006 Larson, Allen, Weishair & Co., LLP 4 Capturing the Best Performers Ultimate Goal 1. Identify the best 2. Measure the best 3. Learn from the best 4. Be the best © 2006 Larson, Allen, Weishair & Co., LLP 5 Capturing the Best Performers The LarsonAllen “Debt Capacity Index” (DCI) © 2006 Larson, Allen, Weishair & Co., LLP 6 Capturing the Best Performers Measuring Overall Financial Strength Cash Reserves, 15% Net Assets, 5% Revenues, 5% Key Metrics Defined Profitability: Debt Service Coverage Revenues: Debt Service % of Revenues Cash Reserves: Cash to Long Term Debt Net Assets: Debt to Total Capitalization Profitability, 75% © 2006 Larson, Allen, Weishair & Co., LLP 7 Capturing the Best Performers Comparing Overall Financial Strength GOLD STANDARD PERFORMANCE METRICS 2004 Operating Revenues $38,721 DEBT CAPACITY INDEX 38% © 2006 Larson, Allen, Weishair & Co., LLP 8 Other Information: Interviews with Gold Standard Performers • • • • • • • • • • System affiliation Medical staff composition, working relationships, recruitment plans and competition Array of programs and services offered and those being planned for both Medicare and non-Medicare Accreditation status Market service areas including demographics trends and competitor analysis Managed care and third party contracting strategies including the level of current volumes and anticipated changes Pricing methodologies and strategies Current and planned capital investments in the health facilities, both in technology and renovations/replacements of buildings Employee retention and recruitment strategies Why are they successful? © 2006 Larson, Allen, Weishair & Co., LLP 9 Gold Standard Research: Interviews • 35 Gold Standard facilities for potential interviews — Approximately 60% to 70% of facilities interviewed • Response has been very positive • “Non Quantifiable” Critical Success Factors (based on interviews) — Strong Leadership and Management — Medical Staff is Key! • Relationships • Range of Specialties — Quality of Care — Innovation in Meeting the “We believe our commitment to our physicians, our patients and our employees makes this a better community and a better place to live. We are proud of all we are able to achieve on behalf of our community” CEO, Gold Standard Performer Communities Needs — Community Support © 2006 Larson, Allen, Weishair & Co., LLP 10 Insights into Industry Performance © 2006 Larson, Allen, Weishair & Co., LLP 11 “Value” of CAH Status Our Experience “Typical” net revenue benefit of CAH vs. PPS status of between 3% and 10% of revenues. © 2006 Larson, Allen, Weishair & Co., LLP 12 Financial Performance Metrics: CAHs KEY FINANCIAL PERFORMANCE METRICS All Revenue Indicators: Operating Revenues ($000s) Profitability Indicators: Operating EBIDA Margin Operating Margin Total Margin Debt Service Coverage (1) Liquidity Indicators: Net Days in Accounts Receivable Days Cash on Hand (All Sources) Cushion Ratio (1) Cash to Debt Capital and Leverage Indicators Average Age of Plant Debt to Capitalization (1) Facilities without Long Term Debt (1) - for Facilities with Long Term Debt Small $7,603 $3,885 Mid Large $7,777 $15,702 4.4% -0.8% 2.4% 2.18x -0.7% -4.2% 0.1% -0.19x 4.6% -1.0% 2.4% 2.02x 8.3% 2.0% 3.7% 3.87x 59 62 7.1x 70% 57 45 7.9x 100% 59 67 6.7x 67% 58 60 6.0x 71% 11.5 30% 87 (14%) 13.0 23% 26 (26%) 11.3 27% 28 (11%) 9.3 30% 7 (7%) © 2006 Larson, Allen, Weishair & Co., LLP 13 National Performance Overview CAH vs. All US Hospitals Key Indicators: CAH vs. All US Hospitals Key Financial Metrics Profitability Operating Margin % (1) 2003 CAH (2) All U.S. Hospitals CAH vs All U.S. Hospitals -0.8% 1.6% -150.0% 2.4% 2.4% 0.0% 62 80 -22.5% Debt to Total Cap 30% 27% 11.1% Other Average Age of Plant 11.5 9.8 17.3% Excess Margin % Liquidity & Leverage Days Cash (All Sources) Source: (1) LarsonAllen national database derived from Medicare cost report data – All CAHs (2) 2005 Ingenix Almanac of Hospital Financial and Operational Benchmark (2003 data) © 2006 Larson, Allen, Weishair & Co., LLP 14 Insights into the Financial Results • • • • CAH performance lags median hospital performance Significantly reliance on non-operating sources Larger facilities outperform smaller facilities Long-term viability of small CAHs still in doubt • Relative to small and mid sized CAHs, data calls into question the “sufficiency” of small hospital pricing and contracting results © 2006 Larson, Allen, Weishair & Co., LLP 15 Operational and Cost Performance Metrics: CAHs OPERATING AND COST PERFORMANCE METRICS All Utilization Indicators Medicare Cost Based Utilization Medicare Utilization IP Days (Acute+Swing) Medicare Acute Days Overall Inpatient Revenue % of Total Revenue Medicare OP Utilization % Adjusted Days Staffing and Cost Indicators FTEs per AOB Acute FTEs Selected Costs per Day Routine Nursing per Day (All Days) Routine Cost Per Day (Fully Allocated) Surgery Costs per Adjusted Day Emergency Costs per Adjusted Day Medicare Ancillary Cost per Day Medicare Surgery Cost PPD Medicare ER Cost PPD Cost PPD Other Ancillary Costs PPD Swing Bed Ancillary Cost per Day Charge and Discount Information Overall Medicare CCR Inpatient Charges per Day CAH Cost Based Discount % Non-CAH Cost Based Discount % Provider Based Entity Information % of Facilities with Provider Based SNFs % of Facilities with Provider Based Clinics Small Mid Large 33% 77% 742 36% 37% 5,160 42% 84% 430 41% 40% 3,008 34% 78% 731 36% 37% 5,371 31% 72% 1,437 34% 34% 9,213 6.62 88 5.72 46 6.36 87 6.53 145 $393 $731 $34 $86 $565 $37 $68 $460 $213 $449 $773 $9 $49 $460 $3 $39 $418 $182 $394 $741 $33 $84 $558 $34 $64 $459 $217 $356 $711 $73 $113 $672 $103 $102 $467 $238 74% $1,435 26% 26% 89% $1,130 11% 27% 76% $1,396 24% 24% 62% $1,875 38% 28% 26% 53% 20% 59% 24% 49% 36% 64% © 2006 Larson, Allen, Weishair & Co., LLP 16 Insights into the Operating and Cost Performance Results • Overall cost based utilization is 30% to 40% • IP Medicare % poor proxy of overall cost based utilization — IP Medicare Utilization = 77% — OP Medicare Utilization = 37% • Significant resources expended to provide 24 hour emergency coverage Î $400,000+ annually • CAHs have significant contractual adjustments beyond Medicare program © 2006 Larson, Allen, Weishair & Co., LLP 17 CAH Status: A License to Spend? YE 2003 vs. 2002 Financial Performance of Critical Access Hospitals * ($ in Thousands) Revenues & Expenses 2003 2002 % Change Operating Revenues $7,734 $7,100 8.9% Operating Expenses Key Financial Metrics Profitability $7,868 $7,028 12.0% Operating Margin % 0.0% 0.6% -106.2% Excess Margin % Liquidity & Leverage 2.5% 3.5% -28.1% 67 63 7.6% Cash to Debt 79% 80% -1.3% Debt to Total Cap Other 27% 26% 4.1% Average Age of Plant 11.2 11.3 -1.4% Days Cash (All Sources) Strong revenue growth Expense growth significantly exceeded revenue growth Significant margin erosion (expenses) Cash position stable Limited capital investment * - includes only facilities who were CAH for all of 2002 and 2003. © 2006 Larson, Allen, Weishair & Co., LLP 18 Financial and Operating Performance Characteristics Gold Standard and Top Performing Critical Access Hospitals © 2006 Larson, Allen, Weishair & Co., LLP 19 Gold Standard and Top Performing CAHs Gold Standard • • • • 35 facilities in 17 states 8 Small facilities (<$5.5M Revenues) 13 Large facilities (>$11M Revenues) 14 Mid Size facilities TOP PERFORMERS • Small Hospitals: 22 Top Quartile Performers < $5.5M Revenues — Selected Small Hospital Gold Standard Performers — 12 Additional Facilities • Large Hospitals: 18 Top Quartile Performers > $11M Revenues — Selected Large Hospital Gold Standard Performers — 13 Additional Facilities • Mid Size Hospitals: 18 Top Quartile Performers $5.5M to $11M Revenues — Selected Mid Size Hospital Gold Standard Performers — 12 Additional Facilities © 2006 Larson, Allen, Weishair & Co., LLP 20 Where are the Gold Standard Performers? © 2006 Larson, Allen, Weishair & Co., LLP 21 Where are the Gold Standard and Top Performers? 3 2 1 1 13 2 1 6 4 1 1 5 12 1 1 2 1 1 1 3 1 1 1 1 1 2 1 1 1 © 2006 Larson, Allen, Weishair & Co., LLP 22 Market Characteristics of the Typical Gold Standard CAH Median Population of Home County 12,000 (7,100 – 16,700) % Change in Median Population of Home County -2.0% (-4.0% – 1.4%) Age 65+ % of Home County Population 18.1% (14.8% – 20.5%) National Average = 14% © 2006 Larson, Allen, Weishair & Co., LLP 23 Gold Standard Financial Performance Highlights Median CAH (All Facilities) Gold Standard Profitability Indicators Operating EBIDA Margin 4.4% 15.4% -0.8% 9.4% 2.4% 10.4% 62 146 70% 124% Average Age of Plant 11.5 9.8 Debt to Capitalization (1) 30% 23% 87 (14%) 16 (46%) Operating Margin Total Margin Liquidity Indicators Days Cash on Hand Cash to Debt Capital and Leverage Indicators Facilities without Long Term Debt (1) - for Facilities with Long-Term Debt © 2006 Larson, Allen, Weishair & Co., LLP 24 Gold Standard Financial Performance: Implications for Typical CAH Gold Standard Characteristic Impact on Median CAH if Gold Standard Performance Achieved • 4x Operating EBIDA $600,000 - $800,000 more profits • 2x Cash Reserves $1.7M more cash • Newer Plant Assets Almost 2 Years Less Average Plant Age • Lower Debt Levels More Conservative Debt Philosophy © 2006 Larson, Allen, Weishair & Co., LLP 25 Gold Standard Operating Performance Highlights UTILIZATION AND CHARGES Median CAH (All Facilities) Gold Standard STAFFING AND COST PERFORMANCE Median CAH (All Facilities) Utilization Indicators Medicare Cost Based Utilization 33% 40% Medicare Inpatient % 77% 76% Gold Standard Staffing and Cost Indicators Medicare Outpatient % 37% 40% FTEs per Adjusted Occupied Bed Charge and Discount Information 6.36 138 132 Surgery 34 54 Emergency Room 86 56 All Other Ancillaries 293 298 Support and Administration (1) 463 436 70 72 402 311 Surgery 37 86 Emergency Room 68 50 460 508 Overall Costs per Adjusted Day Average Charge per Inpatient Day 1,435 Overall Markup % 135% 143% 74% 80% Non-CAH Based Collection % 6.62 1,586 Acute Nursing Capital Expenses All Other Services and Costs Medicare Inpatient Ancillary Cost per Day All Other Ancillaries (1) - including employee benefits © 2006 Larson, Allen, Weishair & Co., LLP 26 Gold Standard Financial Performance: Implications for Typical CAH Gold Standard Characteristic Impact on Median CAH if Gold Standard Performance Achieved • Higher Global Charges $500,000 to $750,000 more revenues • Lower Staffing Levels 4 to 5 less FTEs • Lower ER Costs $150,000 Less ER Costs • Lower Admin and Support Costs $140,000 Less Support Costs © 2006 Larson, Allen, Weishair & Co., LLP 27 Financial Performance Overview Top Performers by Size Group KEY FINANCIAL PERFORMANCE METRICS Small CAHs Mid CAHs All Small Revenue Indicators: Operating Revenues ($000s) Profitability Indicators: Operating EBIDA Margin Operating Margin Total Margin Debt Service Coverage (1) Liquidity Indicators: Net Days in Accounts Receivable Days Cash on Hand (All Sources) Cushion Ratio (1) Cash to Debt Capital and Leverage Indicators Average Age of Plant Debt to Capitalization (1) Facilities without Long Term Debt Number of Facilities (1) - for Facilities with Long Term Debt $3,885 Top Performers $4,016 All Mid $7,777 Large CAHs Top Performers $8,070 All Large $15,702 Top Performers $17,163 -0.7% -4.2% 0.1% -0.19x 13.4% 8.1% 10.3% 5.60x 4.6% -1.0% 2.4% 2.02x 15.6% 8.4% 10.0% 7.52x 8.3% 2.0% 3.7% 3.87x 15.0% 8.2% 9.8% 4.58x 57 45 7.9x 100% 67 193 9.7x 124% 59 67 6.7x 67% 67 195 18.8x 131% 58 60 6.0x 71% 54 157 6.1x 102% 13.0 23% 26 (26%) 99 11.3 14% 5 (23%) 22 11.3 27% 28 (11%) 433 10.4 28% 3 (17%) 18 9.3 30% 7 (7%) 102 9.3 34% 2 (10%) 18 © 2006 Larson, Allen, Weishair & Co., LLP 28 Operating and Cost Performance Overview Top Performers by Size Group OPERATING AND COST PERFORMANCE METRICS Small CAHs Mid CAHs All Small Utilization Indicators Medicare Cost Based Utilization Medicare Utilization IP Days (Acute+Swing) Medicare Acute Days Overall Inpatient Revenue % of Total Revenue Medicare OP Utilization % Adjusted Days Staffing and Cost Indicators FTEs per AOB Acute FTEs Selected Costs per Day Routine Nursing per Day (All Days) Routine Cost Per Day (Fully Allocated) Surgery Costs per Adjusted Day Emergency Costs per Adjusted Day Medicare Ancillary Cost per Day Medicare Surgery Cost PPD Medicare ER Cost PPD Cost PPD Other Ancillary Costs PPD Swing Bed Ancillary Cost per Day Charge and Discount Information Overall Medicare CCR Inpatient Charges per Day CAH Cost Based Discount % Non-CAH Cost Based Discount % Provider Based Entity Information % of Facilities with Provider Based SNFs % of Facilities with Provider Based Clinics Number of Facilities Top Performers All Mid Top Performers Large CAHs All Large Top Performers 42% 84% 430 41% 40% 3,008 47% 74% 474 36% 39% 3,306 34% 78% 731 36% 37% 5,371 41% 82% 835 39% 39% 5,265 31% 72% 1,437 34% 34% 9,213 5.72 46 5.45 49 6.36 87 5.79 88 6.53 145 5.92 157 $449 $773 $9 $49 $460 $3 $39 $418 $182 $390 $749 $13 $46 $460 $25 $41 $394 $213 $394 $741 $33 $84 $558 $34 $64 $459 $217 $395 $753 $47 $67 $479 $65 $45 $369 $199 $356 $711 $73 $113 $672 $103 $102 $467 $238 $347 $699 $73 $92 $645 $126 $79 $440 $261 89% $1,130 11% 27% 85% $1,226 15% 25% 76% $1,396 24% 24% 72% $1,349 28% 19% 62% $1,875 38% 28% 62% $1,793 38% 24% 20% 59% 99 9% 36% 22 24% 49% 433 28% 22% 18 36% 64% 102 30% 55% 18 © 2006 Larson, Allen, Weishair & Co., LLP 33% 76% 1,599 31% 36% 10,796 29 A Road Map to Gold Standard Performance © 2006 Larson, Allen, Weishair & Co., LLP 30 CAH Gold Standard Performance Paradigm © 2006 Larson, Allen, Weishair & Co., LLP 31 A Road Map to Gold Standard Performance 1. Gold Standard Performers “Price for Success” Average Medicare Inpatient Charges Per Patient Day $1,700 Gold Standard Performers have… 1) Higher Overall Charges 2) Higher Overall Markups on Costs $1,600 $1,500 $1,400 $1,300 All CAHs, $1,435 Gold Standard, $1,586 Gold Standard facilities Price for Success! Gold Standard 11% Higher than Median CAH $1,200 $1,100 $1,000 Avg Charges PPD © 2006 Larson, Allen, Weishair & Co., LLP 32 A Road Map to Gold Standard Performance 2. Gold Standard Performers Collect More Revenues from Non-Medicare Payors Gold Standard Performance Have Higher Non-Medicare Collection Levels Average Collection %: Non-Medicare Sources * 81% 80% 79% 78% 77% 76% 75% 74% 73% 72% 71% Gold Standard, 80% Gold Standard facilities collect a higher amount of non-governmental revenues. Gold Standard 8% Higher than Median CAH All CAHs, 74% Non-Medicare Payment % *- Based on Net Patient Revenues less Medicare Cost based reimbursement Gross Patient Revenues less Medicare Revenues © 2006 Larson, Allen, Weishair & Co., LLP 33 A Road Map to Gold Standard Performance 3. Gold Standard Performers Have Superior Cost Performance Gold Standard Performers have… 1) Lower Overall Costs 2) Lower Staffing 3) Lower ER Costs Average Costs per Adjusted Day $1,500 $1,450 Gold Standard have Lower Cost structures Gold Standard 9% Lower than Median CAH. All CAHs, $1,486 $1,400 $1,350 $1,300 Gold Standard, $1,359 $1,250 Overall Costs per Adjusted Day © 2006 Larson, Allen, Weishair & Co., LLP 34 A Road Map to Gold Standard Performance 4. Gold Standard Performers Have Stronger Procedural and Ancillary Services Gold Standard Performers have higher levels of procedural and ancillary services. © 2006 Larson, Allen, Weishair & Co., LLP 35 A Road Map to Gold Standard Performance 5. Gold Standard Performers have outstanding physicians and excellent relationships with their Medical Staff and community. Gold Standard Performers have… 1) “Outstanding” local physicians 2) Excellent relationships with their physicians and communities “The physicians in our community are outstanding. They are really committed to the health of our area and have been very innovative in their efforts to improve the health of our region.” CEO, Gold Standard Performer © 2006 Larson, Allen, Weishair & Co., LLP 36 A Road Map to Gold Standard Performance 6. Gold Standard Performers aggressively grow revenues and manage costs. Gold Standard Performers more aggressively grow revenues and manage expense growth. © 2006 Larson, Allen, Weishair & Co., LLP 37 Impact of Gold Standard Performance on Capital Spending Capacity © 2006 Larson, Allen, Weishair & Co., LLP 38 Implementing the Gold Standard Performance Paradigm Key Attributes to Keep in Mind © 2006 Larson, Allen, Weishair & Co., LLP 39 CAH Ancillary Cost Calculation Medicare Cost Report is Complex Worksheet A Inpatient and Outpatient Ancillary Services Direct Costs Worksheet D-Series (As Adjusted/Reclassed) Calculates Medicare Cost Worksheet B Fully Allocated Costs Cost to Charge Ratio Medicare Charges X Provider Summary Report (By Insurance Code) = Medicare Cost Worksheet C Charges Worksheet E Series Compares Medicare Cost to Interim Payments and Calculates the Settlement © 2006 Larson, Allen, Weishair & Co., LLP 40 Impact of Strategic Management Initiatives for a CAH Impact of Cost Reductions on Overall Profitability Direct Cost Per Procedure Sample Hospital Administrative & General Operation Plant Laundry Housekeeping Dietary Nursing Admin Medical Records Adults & Pediatrics ICU Nursery Skilled Nursing Operating Room Delivery & Labor Radiology - Diagnostic Laboratory Respiratory Therapy Physical Therapy Emergency $ 0.12 $ 0.06 $ 0.01 $ 0.03 $ 0.06 $ 0.03 $ 0.01 $ 232.61 $ 1,786.29 $ 189.96 $ 56.82 $ 463.79 $ 139.52 $ 67.34 $ 14.48 $ 21.27 $ 16.45 $ 101.80 Peer Group Median $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 0.11 0.04 0.01 0.01 0.04 0.02 0.02 202.79 208.48 68.91 78.82 141.64 94.59 61.59 8.30 2.82 15.81 104.97 Potential Cost Reduction Opportunities Less Cost Based Reimbursement Lost Under CAH Net Opportunity $ $ $ $ 152,000 182,000 39,000 133,000 185,000 140,000 (68,000) (70,000) (12,000) (52,000) (38,000) (88,000) 84,000 112,000 27,000 81,000 147,000 52,000 93,000 33,000 10,000 (68,000) (25,000) (4,000) 25,000 8,000 6,000 257,000 4,000 42,000 218,000 120,000 25,000 (114,000) (2,000) (20,000) (131,000) (89,000) (16,000) 143,000 2,000 22,000 87,000 31,000 9,000 1,633,000 $ (797,000) $ 836,000 = Unfavorable Positions as Compared to Peer Group © 2006 Larson, Allen, Weishair & Co., LLP 41 Impact of Strategic Management Initiatives for a CAH Impact of Cost Reductions on Overall Profitability COST CONTROL EXAMPLE IN A CAH FACILITY (Simplified Example) Ancillary Costs Cost Net Revenue Net Margin Prior to Cost Prior to Cost Reduction Reduction Cost After Cost Reduction Net Revenue After Cost Reduction Net Margin After Cost Reduction Assumed Interim Payment Based on Original Cost Structure Third Party Settlement Receivable/ (Payable) Commercial Insurance Medicare 2,500 2,500 4,500 2,500 2,000 - 2,000 2,000 4,500 2,000 2,500 - 4,500 2,500 0 (500) Total 5,000 7,000 2,000 4,000 6,500 2,500 7,000 (500) Cost to Charge Ratio Assumed Expense Change 0.5000 0.4000 (1,000) © 2006 Larson, Allen, Weishair & Co., LLP 42 Impact of Strategic Management Initiatives for a CAH Impact of Price Changes on Overall Profitability PRICE INCREASE EXAMPLE IN A CAH FACILITY (Simplified Example) Ancillary Costs Cost Net Revenue Net Margin Prior to Price Prior to Price Increase Increase Cost After Price Increase Net Revenue After Price Increase Net Margin After Price Increase Assumed Interim Payment Based on Original Cost Structure Third Party Settlement Receivable/ (Payable) Commercial Insurance Medicare 2,500 2,500 4,500 2,500 2,000 - 2,500 2,500 4,950 2,500 2,450 - 4,950 2,750 (250) Total 5,000 7,000 2,000 5,000 7,450 2,450 7,700 (250) Cost to Charge Ratio Assumed Price Change 0.5000 0.4545 10% © 2006 Larson, Allen, Weishair & Co., LLP 43 Key Analysis Groupings: Gold Standard Research • • • • • • • • Gold Standard: Based on LarsonAllen selection of national best performing CAHs (N=35) All Facilities: Based on All CAHs as of FYE 2003 (N= 634) Small Hospitals: Facilities with $5M or less revenues in 2003 (N = 99) that were CAH for a least 2 years Best Small Hospitals: Facilities with $5.5M or less revenues in 2003 (Large Hospitals) with best overall financial performance (N = 22) Large Hospitals: Facilities with $11M or more operating revenues in 2003 (N = 99) that were CAH for a least 2 years Best Large Hospitals: Facilities with $12M or more revenues in 2003 (Large Hospitals) with best overall financial performance (N = 18) Mid Size Hospitals: Facilities with $5.5M to $11M operating revenues in 2003 (N = 400) Best Mid Size Hospitals: Facilities with $5.5M to $11M operating revenues (Mid Size Hospitals) in 2003 with best overall financial performance (N = 18) © 2006 Larson, Allen, Weishair & Co., LLP 44 Contacts The full Critical Access Hospital Gold Standard Performance Summary (2004/2005 report based on 2003 data) is available on our Web site at http://www.larsonallen.com/healthcare/cahgs.asp. If you would like to receive a copy, or have any other questions regarding LarsonAllen and how we might serve you, please contact any of the following members of the CAH Gold Standard Development Team. Rob Schile, Principal LarsonAllen 612-376-4592 [email protected] David Schuh, Principal LarsonAllen 612-376-4761 [email protected] Matt Claeys, Principal LarsonAllen 612-376-4736 [email protected] Jim Rice, Principal LarsonAllen 612-376-4571 [email protected] Nancy Rehkamp, Principal LarsonAllen 612-376-4625 [email protected] Dan Larsen, Manager LarsonAllen 507-434-7055 [email protected] © 2006 Larson, Allen, Weishair & Co., LLP 45