18 th Annual Citi Not-for-Profit Health Care Investor Conference. Managing Change

Transcription

1 18 th Annual Citi Nt-fr-Prfit Health Care Investr Cnference Managing Change May 24, 2017

2 Presenters: Richard P. Miller President and Chief Executive Officer Rbert M. Segin Executive Vice President and Chief Financial Officer Gerard V. Lwe Senir Vice President, Finance 2

3 PRESENTATION OF VIRTUA Missin, Visin, Values, Strategic Imperatives, and Operatinal Pririties Overview f Virtua Managing Change Market Share Financials Agenda Investment/Debt Prfiles 3

4 Missin, Visin, Values, Strategic Imperatives, and Operatinal Pririties 4

5 MISSION AND VISION MISSION Virtua helps yu be well, get well and stay well VISION Virtua will be the premier chice fr health and wellness 5

6 MISSION, VISION, VALUES, STRATEGIC IMPERATIVES, AND OPERATIONAL PRIORITIES 6

7 LEADERSHIP/MANAGEMENT SYSTEM Virtua Racetrack STAR Management System

8 8 Overview f Virtua

9 OVERVIEW OF VIRTUA Ambulatry Access and Navigatin Virtua Medical Grup Virtua Express Urgent Care CVS MinuteClinics Health & Wellness Centers Ambulatry Surgery Centers Hme Health Agencies serving Burlingtn, Camden and Glucester cunties Virtua Hme Caregivers Hspital Based Ambulatry Prgrams Teladc 9

10 OVERVIEW OF VIRTUA Ppulatin Management Virtua Care Accuntable Care Organizatin Virtua Physician Partners Clinically Integrated Netwrk Acute Care Three acute care facilities in excess f 950 beds Marltn Munt Hlly Relcatin t Westamptn (Prjected ) Vrhees Pst Acute Tw skilled nursing facilities in excess f 300 beds 10

11 OVERVIEW OF VIRTUA Other Virtua Fundatin Virtua Assurance Captive Furth largest reginal health system in New Jersey 11

12 OVERVIEW OF VIRTUA Awards and Recgnitin The Leapfrg Grup has awarded Virtua straight A s since Octber 2014 Virtua Vrhees was awarded Leapfrg Grup Tp Hspital hnrs (2014, 2015) and Tp Teaching Hspital (2016) Virtua Marltn was awarded Leapfrg Grup Tp Hspital hnrs (2015) Virtua was awarded the Healthgrades Patient Safety Excellence Award (2016, 2017) Tp 10% natinally fr patient safety Virtua was recgnized by US News and Wrld Reprt as a best reginal hspital in five types f care (2016, 2017): Knee replacement, hip replacement, COPD, heart failure, cln surgery Virtua Vrhees received Press Ganey Guardian f Excellence Award fr Patient Satisfactin (2014, 2015, 2016) Tp 5% natinally fr patient satisfactin The Advisry Bard Wrkplace f the Year (2016, 2017) Virtua vted as Best Place t Wrk in the Delaware Valley by the Philadelphia Business Jurnal (11 cnsecutive years) 12

13 13 Managing Change

14 Custmer Awareness & Service Excellent Service Prduct & Price Transparency (Quality & Safety) Resurce Stewardship Caring Culture OUTSTANDING EXPERIENCE Quality & Safety Best Peple Caring Culture CONSUMER LOYALTY Emplyment Engagement 14

15 OVERVIEW OF VIRTUA Managing Change Cntinued Grwth and Emphasis n Health and Wellness Virtua Physician Partners Clinically Integrated Netwrk Missin is t enhance Virtua s Ppulatin Health delivery mdel by aligning clinical grups, quality, access, efficiency, and affrdable pricing Whlly wned by Virtua 1,550 prviders thrughut all specialties with an emphasis in primary care 1,100 independent physicians Virtua Physician Partners will participate with all health plans Aetna Whle Health Virtua Value Based Slutins 15

16 OVERVIEW OF VIRTUA Cntinued Grwth and Emphasis n Health and Wellness (cntinued) Virtua Care ACO Cvered lives are exclusively thrugh VMG primary care physicians medical hme mdel Medicare = 15,000 Payers = 30,000 Managing Change Emplyees/Dependents = 12,000 Cmmunity health managers manage the wellness, chrnic disease and crdinate care fr ur high risk members Care teams (nutritinists, scial wrkers, pharmacists, and health trainers) assist the health managers t prmte better health and manage chrnic disease 16

17 OVERVIEW OF VIRTUA Managing Change Cntinued Grwth and Emphasis n Health and Wellness (cntinued) Virtua Medical Grup 488 clinicians at ver 108 practice lcatins 325 emplyed physicians representing 20% f the active medical staff 117 primary care clinicians Medical Hme Level III designatin and Cmprehensive Primary Care Plus participant OB/GYN, maternal fetal medicine, cardilgy, pulmnary, neurlgy, gastrenterlgy, surgical, infectius disease, dental, and ther specialty practices Over 834,000 encunters annually Virtua fr Wmen Primary and specialty physicians dedicated t wmen s health Remte hme mnitring 17

18 OVERVIEW OF VIRTUA Cntinued Grwth and Emphasis n Health and Wellness (cntinued) Managing Change Ambulatry Surgery Jint Venture Strategy 16 Jint Ventures thrughut New Jersey 2017 budgeted case vlume f 94, % increase ver 2016 $185 millin in budgeted 2017 revenue Over 306 physician investrs Twelve additinal ASC s are currently under review Partners SCA, AMSURG, USPI 18

19 OVERVIEW OF VIRTUA Cntinued Grwth and Emphasis n Health and Wellness (cntinued) Health System Strategic Alliance Penn Medicine Cancer Clinical trials, genetic research, physician supprt, navigatin Neursciences Managing Change Penn wrking with Virtua t prvide intermediate neursurgery at Virtua Advanced neursurgery will be perfrmed at Penn Children s Hspital f Philadelphia Jint venture in pediatric diagnstic and sleep centers Physician pediatric cverage thrughut Virtua 19

20 OVERVIEW OF VIRTUA Cntinued Grwth and Emphasis n Health and Wellness (cntinued) Pst Acute Varius lng term facilities preferred prviders based n quality and utcmes Samaritan Hspice Managing Change Other General Electric Enterprise partnership 20

21 Market Share & Financials 21

22 VIRTUA MARKET SHARE Gegraphic Realignment and Fcus Overall 33.2% 33.0% 33.7% 33.8% 34% Burlingtn 51.9% 51.2% 52.1% 52.8% 53.2% Camden 30.0% 30.2% 30.4% 29.6% 29.2% Glucester 10.5% 10.6% 11.4% 12.1% 12.1% VIRTUA NORTH VIRTUA SOUTH 22

23 VIRTUA FINANCIALS Public Public Credit Credit Ratings Ratings Standard & Pr s AA with a Stable Outlk Fitch Ratings AA with a Stable Outlk Virtua has the highest health system public credit rating in the State f New Jersey 23

24 HEALTHCARE FINANCE: Operating, Excess and Operating EBIDA Margins 24

25 HEALTHCARE FINANCE: Cash and Days f Cash n Hand Cash Days f Cash n Hand $1,400 $1, Cash (millins) $1,000 $800 $600 $ Days f cash n hand $ $ Fitch "AA-" Days f Cash n Hand Median = S&P "AA-" Days f Cash n Hand Median =

26 HEALTHCARE FINANCE: Maximum annual debt service cverage, cash t debt, and debt t capitalizatin 26

27 VIRTUA FINANCIALS Balance Sheet (millins) Balance Ttal Assets Ttal Liabilities Ttal Equity $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2,030 $1,039 $991 $2,536 $2,376 $2,275 $2,143 $1,638 $1,472 $1,362 $1,240 $903 $913 $904 $898 $

28 VIRTUA S INVESTMENT PROFILE Overall Structure Allcatin f Equities Investment Manager: Russell Investments (acquired by TA Assciates and Reverence Capital frm Lndn Stck Exchange Grup in 2016) Separate pls and allcatins fr Nn Qualified and Pensin funds Frzen defined benefit pensin plan s PBO funded status is 12/31/16 28

29 VIRTUA S DEBT PROFILE Underlying Structure Credit Enhancement 2016 weighted cst f capital was 3.70% N interest rate swaps in place Letters f Credit (LOC) are with JP Mrgan, TD Bank and Wells Farg Cash, net f LOC ttal, exceeds AA median; up t 4 year term ut 29

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