Finance Committee April 2019

1. Finance Committee April 2019

2. April 2019 Financial Report AGENDA April Highlights Forecast – FY 19 Forecast – 12 month rolling

3. Strong volume in April. • Both Acute and Post-Acute patient days over budget. • ALOS over budget (trend for year). • Clinic Visits close to budget (below 0.7%) • Physician wRVU’s over budget by 14.5% April 2019 Financial Report Volume Highlights

4. Operating Income $2.8 million under budget. • EBIDA 8.4% at budget. YTD EBIDA 4.0% and 0.4% under budget. • NPSR $1.3 million under budget. On track for a $27-29 million annual shortfall. • Supplemental Revenue $3.7M over budget. • Expenses $2.2 million over budget but $14.0 million under YTD. April 2019 Financial Report Highlights

5. Gross patient revenue over budget; correlates with higher patient volume. • NPSR $1.3 million under budget. NPSR Collection % also under budget by 1.2%. On track for a $27-29 million annual shortfall in NPSR. • Medi-Cal Waiver $3.0M over budget from “bringing in” reserves to income. April 2019 Financial Report Revenue Highlights

6. FTEs increased as open positions are filled. • Salaries/Wages/Registry combined $1.0 million over budget; correlates with patient volumes. • Benefits $1.0 million over budget but consistent with prior months. • Pharmaceuticals over $500k. Partial reserve for potential 340b audit findings. • YTD Operating Expense $14.0 million under budget. April 2019 Financial Report Expense Highlights

7. Days in Cash increased due to the timing of the payroll funding. • Days in Accounts Payable increased due change in invoice processing which has reduced the number of days to enter invoice into the system. April 2019 Financial Report Balance Sheet Key Metrics

8. April 2019 Financial Report Cash Collections

9. Net reimbursement receivable $53.8 million. • Anticipated recoupments are highlighted. April 2019 Financial Report Reimbursement

10. NNB at $98.7 million and lower than $130 million target. April 2019 Financial Report Line of Credit

11. NNB projected at $92.2 at June 30th. • Not reflected in NNB – anticipated reimbursement recoupments of $167.9 million. • When included, the NNB will increase to $130.2 million and exceed the NNB target. April 2019 Financial Report Line of Credit Revised

12. April 2019 Financial Report FY 19 Year End Forecast Assumptions Original amounts based on FY19 budget. Gross IP revenues increased 2% monthly based on increased days from ED virtual bed implementation. Gross Physician revenues increased by 6% monthly. NPSR Collection % adjusted for budget shortfall and virtual beds. Adj. to Waiver and Supplemental Revenues based on interim review. Salary savings applied at 2.4% for normal vacancies, reduced OT, benchmarking and not filling overhead positions based on YTD. Benefits adjusted for salary change and lower Workers’ Comp. Purchased Services reduced additional $2 million from budget. Pharmaceuticals projected at budget next 2 months. Supplies and Repairs/Maintenance/Utilities expected to be at budget for next 3 months. Other/Admin and General reduced additional $1 million from budget.

13. April 2019 Financial Report FY 19 Year End Forecast

14. The assumptions have remained consistent and do not reflect any proposed budgetary cuts or changes in services for FY20. April 2019 Financial Report 12 Month Rolling Projection