Transcription
Annual ReportFiscal Year 2019
Table of ContentsMissionVisionPresident’s MessagePresident’s Message . 3To improve the health and well-being ofindividuals, families and our communities.Exceptional People.Extraordinary Care.Every Time.Health systems are under increasing pressure to deliver excellent clinicalcare and a simply better patient experience at the lowest possible cost.Nearly a decade ago, MemorialCare recognized that the most effectiveway to meet these objectives was through value-based care. We madesizable early investments in network expansion, technology, and thehuman capital necessary to deliver results in value-based care. In doingso, we’ve established ourselves as an industry leader.Leading Best Practice Care . 4Clinically Integrated Network . 4ValuesInvesting in Technology . 4IntegrityAlways holding ourselves to the highest ethicalstandards and values. Doing the right thing,even when no one is watching.Awards and Accolades . 6Value-Based Care. 7Network Growth .9Advancing Access .10State-of-the-Art Facilities .11MemorialCare Locations and Map . 12Behavioral Health Integration . 14Connecting with the Community . 152019 Financial Summary. 18Senior Executives and Boardsof Directors . 20AccountabilityBeing responsible for meeting thecommitments we have made, including ethicaland professional integrity, meeting budget andstrategic targets, and compliance with legal andregulatory requirements.Best PracticesRequires us to make choices to maximizeexcellence, and to learn from internal andexternal resources about documentedways to increase effectiveness and/or efficiency.CompassionServing others through empathy, kindness,caring and respect.SynergyA combining of our efforts so that togetherwe are more than the sum of our parts. Today, our commitment to providing high-quality care in the most costeffective way continues to be the driving force behind what we do. A central part of MemorialCare’s strategy to offer high-value healthcareis the expansion of our outpatient network. We’re opening new healthcenters across the region, making patient access easier and moreconvenient than ever.MemorialCare’s leadership in value-based care has led to improvedhealth among our patients, even better patient experience and reducedoverall cost-of-care. As the healthcare landscape continues to transform,we will continue to lead the way in revolutionizing value. Please enjoyreading more about our developments in 2019 in this annual report.Barry Arbuckle, Ph.D.President and Chief Executive OfficerMemorialCare Together with our health plan partners, we continue to developinnovative health plan products that hold us accountable forperformance – delivering exceptional quality and patient experiencewhile reducing healthcare spending for employers and their employeesthroughout our region. This past year, we added three new value-basedhealth plan offerings to our expanding portfolio. MemorialCare Health Alliance, our customized, Direct-To-Employercontract between MemorialCare and The Boeing Company hassignificantly reduced total cost-of-care for both the employees enrolledin the plan and for Boeing. As a result, Boeing and MemorialCareagreed to extend our partnership by another two years. In 2018, we developed the MemorialCare Clinically Integrated Network.Today that network, comprised of select physicians working collaborativelywith our health system, is demonstrating quality and making dramaticimprovements in efficiency, generating more than 7 million in costsavings in its first year.3
Leading Best Practice CareEach year, MemorialCare sets Bold Goals for excellence.In FY 2019, we achieved:Sepsis survival:71% improvementColorectal cancerscreening:26% higher thanIHA averageImmunizationsfor adolescents:42% higher thanIntegrated HealthcareAssociation (IHA) averageCesareansection delivery:California Honor Roll(all hospitals)Blood pressure control:16% higher thanIHA averageDiabetes care:9% better thanIHA averageAmong the network’s most effective initial efforts are its Hospital EfficiencyImprovement Programs (HEIPs). HEIPs seek to improve patient care in thehospital setting by achieving specific quality and efficiency goals.Thus far, our HEIPs have focused on select surgical and proceduralspecialty areas, including Anesthesiology, General and Colorectal Surgery,Gynecology, Procedural Cardiology, Spine, Total Joint and Vascular.Working together with more than 230 network physicians, we haveimproved patient outcomes and generated more than 7 million in costsavings through such initiatives as our physician-led, systemwide approachto purchasing and use of select cardiac, orthopedic and spinal implantabledevices and equipment.In the coming year, MemorialCare’s CIN will more than double in size toinclude select networks of Primary Care and Obstetric physicians focusedon opportunities to improve care across all settings.Investing in TechnologyMemorialCare made significant investments in advanced surgicalinnovations during FY 2019: ExactechGPS provides real-time, 3D visual guidance in total shoulderreplacement surgery.Clinically Integrated Network ExcelsiusGPS combines navigation and robotic-assisted technology forminimally invasive spine surgery.MemorialCare’s Clinically Integrated Network (CIN) consists of selectphysicians and other individual health providers who work together andcollaboratively with the health system to improve patient care, appropriatelydecrease costs and demonstrate value to the market. SAVI SCOUT uses radar during lumpectomy procedures, enablingsurgeons to locate target tissues within 1 millimeter of accuracy.Formed in 2018, our physician-led network is now well-established andalready demonstrating the results it was created to achieve.4 Hybrid Operating Room combines imaging equipment with amultifunctional surgical table, allowing clinicians to diagnose and treat ina single workspace, improving patient safety while reducing costs. Mako Robotic-Arm Assisted Technology uses computed tomography(CT) scan information to create 3D images to help doctors personalizeeach patient’s joint replacement surgery.71%improvement insepsis survival26%higher colorectal cancerscreening thanIHA average5
Value-Based CareAwards and AccoladesLong Beach Medical Center2019 U.S. News & World Report Best Hospitals:Highest ranked in Greater Long Beach RegionTop 6 in Los Angeles CountyTop 9 in Orange and Los Angeles CountiesTop 15 in CaliforniaHigh Performance status in Cancer, Cardiology & HeartSurgery, Heart Failure, Heart Bypass Surgery, Orthopedics,Geriatrics, Neurology & Neurosurgery, Colon Cancer Surgery,Gastroenterology & Gastrointestinal Surgery, and moreMagnet designation by American Nurses Credentialing Center’s(ANCC) Magnet Recognition Program for nursing excellenceMiller Children’s & Women’s Hospital Long Beach2019 Southern California Super Doctors Report ore than 20 physicians recognized in the top 5 percent of theirMfields by the Southern California Super Doctors Report, whichsurveyed 30,000 physicians in Southern California6Orange Coast Medical Center2019 U.S. News & World Report Best Hospitals:High Performance status in Gastroenterology & GastrointestinalSurgery, Geriatrics, Nephrology, Neurology & Neurosurgery,Orthopedics, Pulmonology & Lung Surgery, and Urology2019 The Orange County Register’s Best of Orange County:ranked #1 hospital in Orange CountyMagnet designation by American Nurses Credentialing Center’s(ANCC) Magnet Recognition Program for nursing excellenceSaddleback Medical Center2019 U.S. News & World Report Best Hospitals:Top 12 in Orange and Los Angeles CountiesTop 22 in CaliforniaMemorialCare Medical GroupIntegrated Healthcare Association (IHA) Excellence in HealthcareAward, California’s top honor for physician organizations2019 PAS survey: 98th percentile for Overall Rating of Care,third in the stateAPG Standard of Excellence Elite StatusIHA Medicare Advantage – 4.5 stars out of 5Greater Newport PhysiciansIHA Excellence in Healthcare Award, California’s top honor forphysician organizationsAPG Standard of Excellence Elite StatusIHA Medicare Advantage – 4.5 stars out of 5Edinger Medical GroupNational ranking in OrthopedicsIHA score: 90th percentile in Achievement Scores for Clinical QualityHigh Performance status in Heart Bypass Surgery, HeartFailure, Geriatrics, Hip Replacement, Knee Replacement,Gastroenterology & Gastrointestinal Surgery and UrologyAPG Standard of Excellence Elite Status2019 Baby-Friendly designation: ranked in top 10 percent of U.S.hospitals and birth centers by Baby-Friendly USA, Inc.2019 The Orange County Register’s Best of Orange County:ranked #2 hospital in Orange CountyMagnet designation by American Nurses Credentialing Center’s(ANCC) Magnet Recognition Program for nursing excellence agnet designation by American Nurses Credentialing Center’sM(ANCC) Magnet Recognition Program for nursing excellenceDisease Specific Certification in Pediatric Asthma from The JointCommission for excellence in asthma care Geriatric Emergency Department Accreditation by theAmerican College of Emergency PhysiciansMemorialCare participates in more value-based health plan offeringsthan any other health system in Southern California. Through enhancedcare coordination, chronic disease management, pharmacy cost reductionand caring for patients in the most appropriate settings, we significantlyreduced employers’ healthcare costs.IHA Medicare Advantage – 4.5 stars out of 5MemorialCare Proven Value-Based ProductsProduct NameType of ProductMemorialCare Health AllianceDirect-To-EmployerContract with BoeingVivityAnthem HMOAetna Whole HealthHMO, PPOUnited AllianceHMOBlue Shield TrioHMOBlue Shield TandemPPO7
Network GrowthCounting on Our CareOur Expanding NetworkMemorialCare continues to enhance our geographic footprintby adding more community-based outpatient locations, close towhere our patients live and work. In 2019, MemorialCare openednew health centers in Rancho Mission Viejo and Tustin, added toour growing network of breast centers with new locations in Irvineand Los Alamitos, as well as a new dialysis center in HuntingtonBeach. MemorialCare will open additional locations covering awide range of services including urgent care, breast care, primarycare with pediatrics, obstetrics/gynecology and imaging by the endof 2020.9,500 babies delivered1,349 licensed beds288,000 patients in value-based plans275,000 patient days (including newborns)By the Numbers:4 leading hospitals2,600 physicians2 award-winning medical groups7 hospital-based breast centers27 health centers13 community-based dialysis sites28 ambulatory imaging centers7 home-based dialysis programs8 outpatient surgical centers1.7M patients each year9 urgent care centers14,000 employees and physicians600,000 medical group visits183,000 emergency department visits60,500 patient discharges63,000 ambulatory surgeries30,000 hospital-based surgeries707 average daily census145,000 home health visits89
Advancing AccessState-of-the-Art FacilitiesMemorialCare is transforming the patient experience by utilizing the latestdigital tools to create a better patient experience. We’re constantly innovating:MemorialCare is invested in improvingexisting facilities and breaking ground onnew ones, including:Navigation CenterThe MemorialCare Navigation Center provides a single point of contactfor patients and their families to communicate with a Patient Navigatorfor any matter related to the MemorialCare network. This includes makingor changing appointments, obtaining test results, locating a physician inany specialty, and speaking to a telephone advice nurse, to name a few.Extended hours are provided to meet the needs of patients’ busy lifestyles.Amazing SchedulingMaking appointments is convenient with these scheduling options: Navigation Centermemorialcare.orgMemorialCare myChart appIn person at any of our medical group locationsReserve Your SpotThrough memorialcare.org, patients can check the wait times and reservea same-day appointment at any of our nine urgent care centers.Emergency Pavilion Expansion atOrange Coast Medical Center Doubled the size of the EmergencyDepartment, added 13 privatetreatment rooms, fast track stationsand bedside registration, amongother improvements.Cherese Mari Laulhere Children’sVillage Groundbreaking Named in memory of Cherese MariLaulhere, in acknowledgment of atransformative financial gift providedby the Cherese Mari LaulhereFoundation, the Village bringstogether 36 pediatric specialties inone location. Opening in 2021.Virtual CareMemorialCare’s latest advancements include video visits with behavioralhealth specialists and access to SilverCloud, an online therapy program.Epic RefreshSet for completion in 2020, Epic Refresh improves our electronic medicalrecord system, standardizes workflows, enhances provider-to-patientcommunication and makes the myChart app more user-friendly.36pediatricspecialtiesOpening in2021WellistWellist maps out many social services, like grocery deliveryand laundry assistance, in patients’ neighborhoods.1011
105MemorialCare Medical CentersLos AngelesCountyMiller Children’s & Women’sHospital Long Beach57710MemorialCare Shared Services91Children’s Specialty Care CentersYorba Linda605110AnaheimTorranceUrgent Care Centers5524122WestminsterHospital-Based Imaging CentersCommunity-Based Imaging CentersFountainValleyLong BeachMemorialCare Surgical Centers261Irvine51331Dialysis Center,Huntington BeachOur Huntington Beach-baseddialysis center, operated inpartnership with FreseniusKidney Care, provides dialysisand offers free classes aboutkidney disease.The Irvine – Sand Canyonlocation offers convenientbreast cancer screening,early detection, diagnosisand treatment. All ourbreast imaging servicesuse the most advancedtechnology, including 3Dtomosynthesis and DEXAbone density testing. Twomore locations will openin 2020.Orange CountySanta Ana MountainsLaguna CoastWilderness Park73NewportBeachMemorialCare BreastCenter in Los Alamitosoffers a convenient breastimaging satellite location forresidents of north OrangeCounty. The easily accessiblelocation features a spa-likeenvironment and the latestadvanced technology, as wellas expert all-female,subspecialized breast radiologists.(Includes Greater Newport Physicians)241COMING SOONBreast Center,Los AlamitosAffiliated Physician Groups405HuntingtonBeachBreast Center,Irvine — Sand CanyonLagunaHillsAliso andWood CanyonsRegional Park1MissionViejo74LagunaNiguelCOMING SOON5Health Center,TustinFrom routine wellnessscreenings to healthconditions that requirespecialized care, theaward-winning doctors atour Tustin health centerdeliver the highest qualityprimary and pediatric careto our community.15Dialysis CentersCOMING SOONExpandingOutpatientServicesMemorialCare Medical GroupBreast Centers5191Health Center,Rancho Mission ViejoIf you are looking for top-ratedphysicians to keep your family healthy,MemorialCare delivers. Our new, twostory, 26,000 square foot health centerprovides everything you need, includingprimary care and specialty care services,to the residents of south Orange County.Dana PointSan Clemente
BehavioralHealth IntegrationConnecting with the CommunityIn addition to providing exceptional healthcare, MemorialCarepartners with local organizations to promote the health of theentire community. Highlights include:MemorialCare introduced our Behavioral Health Integration programwhich allows our primary care physicians to provide care options forpatients with behavioral health needs. The program includes:Official Healthcare Partner of Angels BaseballThrough our Angels partnership, we’ve connected with baseballfans around Orange and Los Angeles Counties to raise awarenessof life-altering conditions including pediatric and adult cancer,and cardiac health, as well as provide support for living a healthylifestyle. Also, as part of the Angels Partnership, we gathered asa MemorialCare community to clean, garden and spruce up thelocal Boys and Girls Club of Huntington Valley. An embedded clinical social worker at each location Instant referral to needed services Access to a trained psychiatrist via Telehealth Televideo visits to patients enrolled in the program Online patient self-management tools through our partner, SilverCloudNaming the Cherese Mari Laulhere Child Life ProgramOur Behavioral Health Integration program is available at nine locationswith more to be added in 2020.85%reduction in depressionsymptoms in an averageof 31 days14472patients accepted intoprogram in 2019MemorialCare christened our award-winning Child LifeProgram at Miller Children’s & Women’s Hospital Long Beach,the Cherese Mari Laulhere Child Life Program. The new namehonors the legacy of local student, Cherese Mari Laulhere, andacknowledges the financial support provided by the ChereseMari Laulhere Foundation to fund the program.Now in9primary care locationsServicing ourcommunitywith health educationclasses and eventsMarch for BabiesFor more than a decade, MemorialCare has been a primarysponsor of the March of Dimes annual March for Babies. Weare passionately committed to supporting the March of Dimesmission to improve the health of babies, prevent premature birth andinfant mortality, and make sure moms and babies are given the bestpossible care.15
Connecting with the Community(continued)Clinician Mission TripsMemorialCare physicians, nurses and clinicians are devoted to helpingothers in both their professional and personal lives. Each year, manyMemorialCare team members go on mission trips around the world,providing support for groups including Aidchild and Otino Waa Children’sVillage. Other activities have included hosting women’s conferences,cleaning water wells and teaching classes in impoverished nations.Supporting SeniorsWe partner with senior centers throughout our service area to provideresources that help them live their best lives. We offer information abouttheir Medicare benefits and we introduce them to local MemorialCaredoctors. We also offer a variety of classes, including Tai Chi and ATXcardio classes, a program which focuses on the needs of individualswith cardiovascular issues, and technology, smartphone and socialmedia classes.Local Chambers of CommerceAs part of MemorialCare’s ongoing mission to support business andhelp ensure the physical and economic health of the communities weserve, we have taken leadership roles in several local Chambersof Commerce, including Irvine, Long Beach, Fountain Valley,Huntington Beach and Anaheim.Community BenefitMemorialCare’s mission is to improve the health and well-being ofindividuals, families and our communities. Through the free andlow-cost community health services our four hospitals provide,we helped enhance the health – and lives – of nearly half a millionpeople in FY 2019.These include our senior health and wellness education classes coveringtopics such as safety, injury prevention, balance and conditioning, whichreached nearly 280,000 seniors. Our cancer support groups guidedmore than 2,300 people as they navigated the journey from diagnosisto treatment. Through our prenatal, childbirth and parenting classes,MemorialCare helped 13,500 parents-to-be get ready for the impendingbirth of their baby and provided advice, strategies, and tools on how toraise their little one once he or she arrived.MemorialCare hospitals also held numerous community-based clinics thatgave local residents access to healthcare services that they may not haveotherwise, including blood pressure tests and screenings for heart failure,colorectal cancer and hepatitis. Flu shot clinics and behavioral healthservices were also provided to those in need.Health and wellness classes to nearly280,000 seniorsCancer support groups for more than2,300 peopleMemorialCare is proud to support local residents by providing avariety of health education classes, special events and clinical servicesspecifically tailored to meet the unique needs of the people in thesurrounding communities.Prenatal, childbirth andparenting classes for13,500 parents1617
2019 Financial SummaryStrong Financial PerformanceIn 2019, MemorialCare has strengthened our already robustfinancial performance by closely managing costs, increasingefficiency, leveraging our competitive position and securing moreclients by expanding our value-based health plan offerings.Fiscal Year ResultsTotal assets 3,758,918,000Net revenue frompatient servicesFood, drugs, other medicalsupplies/services76%44%Fiscal Highlights Include:Our Philanthropic SupportTotal assets: 3.8BTotal revenues: 2.5BContinued strong operating cash flowLong Beach Medical Center Foundationand Miller Children’s & Women’s HospitalLong Beach Foundation49%Saddleback Medical Center FoundationUnpaid costsof Medi-CalFiscal Year ResultsTotal assets – 143,677,00024%9%Depreciation andamortization5%Net investmentincome4%3%1%7%Fiscal Year ResultsTotal assets – 402,000Researchand otherfor broadercommunityCombined total philanthropic incomegrowth and contributions back to thecommunity across all foundationsCharity careInterest expenses1%Salaries, wagesand benefits20%41%Total RevenueTotal ExpensesTotal Community Benefit* 2,523,915,000 2,344,512,000 140,481,000Net revenue from patient services 1,916,150,000Salaries, wages and benefits 963,430,000Unpaid costs of Medicare 68,799,000Capitation revenue 410,132,000Food, drugs, other medical supplies/services 1,034,024,000Unpaid costs of Medi-Cal 33,658,000Net investment income 85,140,000Research and other for broadercommunity 28,400,000Depreciation and amortization 112,699,000Total quantifiable community benefit withMedicare and Seaside Health Plan included*6271,237Contributions back to the communityEducation, research, community benefitprograms – 4,127,000resident and ic gifts – 38,741,000Support groups – 502,000Charity care 9,624,000Capitation claims expenses 202,900,000Interest expenses 14,063,00010,572total employeesOrange Coast Medical Center FoundationOthernon-operating expensesOther operating revenue 112,493,000medical staff physiciansUnpaid costsof MedicareCapitation claims expensesOther operatingrevenue2,668Fiscal Year ResultsTotal assets – 226,257,000Capitation revenue16%Our Physiciansand Employees320medical studentsCapital and equipment – 9,319,000140,797.37volunteer hoursOther non-operating expenses 17,396,0001819
Senior Executives and Boards of Directors FY 2019MemorialCare Senior ExecutivesMemorialCare Board of DirectorsBarry Arbuckle, Ph.D.President and Chief Executive OfficerBarry Arbuckle, Ph.D.Seaside Health PlanBoard of DirectorsMemorialCare Physician SocietyBoard of DirectorsBarry Arbuckle, Ph.D., ChairOrange Coast Medical CenterSaddleback Medical CenterBoard of DirectorsSharon CheeverJohn BishopChief Executive OfficerLong Beach Medical CenterMiller Children’s & Women’s Hospital Long BeachMark Cianciola, M.D.John BishopBarry Arbuckle, Ph.D.Marnie Baker, M.D.Resa EvansMaribel FerrerSharon CheeverGregory Bush, M.D.Eric Feldman, M.D.Patrick KapsnerResa Evans, ChairKaren Don, M.D.Lorraine BoothChief Human Resources OfficerJames Gauss, ChairLarry LambertThomas FeldmarBrooke LaDuca, M.D.James Leo, M.D.David Law, M.D., ChairTammie McMann Brailsford, RNExecutive Vice PresidentChief Operating OfficerThomas RogersCatherine Han, M.D.Monica Leff, M.D.Tim HelgesonHelen Macfie, Pharm.D.Rick GraniereChief Investment OfficerSamuel TangLong Beach Medical CenterMiller Children’s & Women’s HospitalLong BeachBoard of DirectorsJames GaussRobert SchackWilliam Armstrong, M.D.Julio Ibarra, M.D.Frank Marino, M.D.Barry Arbuckle, Ph.D.Lalita Komanapalli, M.D.Hiren Patel, D.O.David CarverJoel LautenschlegerEric Ramos, M.D.MemorialCare Medical FoundationBoard of DirectorsSathya CheyThomas RogersAdam Solomon, M.D.Jane Close ConoleyDonna Rane-Szostak, Ed.D.Barry Arbuckle, Ph.D.Graham Tse, M.D.Leslie Edrich, M.D.Lawrence Tran, M.D.Barry Behrstock, M.D.William Wallace, M.D.Helen Macfie, Pharm.D.Chief Transformation OfficerJohn FielderMyron Wacholder, M.D.Mark Cianciola, M.D., ChairJames Wells, M.D.Clifford Hancock, M.D.Marcia MankerChief Executive OfficerOrange Coast Medical CenterSaddleback Medical CenterSteve GeidtCynthia Herzog, M.D.James HillmanStephen Hryniewicki, M.D.Patrick KapsnerLorna McFarland, M.D.Mark Schafer, M.D.Chief Executive OfficerMemorialCare Medical FoundationLarry LambertBraden PhillipsFrank Marino, M.D.Robert SchackKeith NelsonBill Webster, M.D., ChairMyron Wacholder, M.D.James Wells, M.D.Scott Joslyn, Pharm.D.Chief Information OfficerTom LearyChief Legal OfficerKaren TestmanChief Financial OfficerBill Webster, M.D.Susan Anderson Wise20Andrew Wittenberg, M.D.
Long Beach Medical CenterMemorialCare Medical Group2801 Atlantic Ave., Long Beach, CA 90806(562) 933-2000Locations throughout Los Angeles and Orange Counties877-MYMEMCARE (696-3622)Miller Children’s & Women’s Hospital Long BeachGreater Newport Physicians2801 Atlantic Ave., Long Beach, CA 90806(562) 933-2000Locations throughout Los Angeles and Orange Counties(800) 553-6537Orange Coast Medical CenterSeaside Health Plan18111 Brookhurst St., Fountain Valley, CA 92708(714) 378-700017360 Brookhurst St., Fountain Valley, CA 92708(855) 833-7747Saddleback Medical CenterShared Services/MemorialCare Medical Foundation24451 Health Center Drive, Laguna Hills, CA 92653(949) 837-450017360 Brookhurst St., Fountain Valley, CA 92708(714) 377-2900memorialcare.org
Counting on Our Care 9,500 babies delivered 1,349 licensed beds 288,000 patients in value-based plans 275,000 patient days (including newborns) 600,000physicians medical group visits 183,000 emergency department visits 60,500 patient discharges 63,000 ambulatory surgeries 30,000 hospital-based surgeries 707 average daily census 145,000 home health visits Network Growth
