Business Plan Relocation of the Romeo Plank and Clinton Township Rehabilitation Sites Presented by: Carolyn Sucaet October 29, 2013.

Business Plan

Relocation of the Romeo Plank and Clinton Township Rehabilitation

Sites

Presented by: Carolyn SucaetOctober 29, 2013

Presentation Outline

• Overview• Project Description• Benefits of the Project: Support of Mission and

SJP Strategic Plan

• Description of Operations• Market Assessment• Analysis of Alternatives• Financial Analysis• Management Recommendation

Overview

• Combining and relocating the SJ Outpatient Rehabilitation Sites currently at Romeo Plank and Clinton Twp to Schoenherr and Hall Road

• Benefits:– Decrease current site overlap– Increase North western Macomb County

outpatient rehab presence– Capture anticipated referrals– Growth of the Ambulatory Rehab program

Project Description

• Outpatient Physical and Occupational Therapy• Services for Orthopedic and Neurological referrals• Specialty Services including:

– Lymphedema and Oncology Rehabilitation– Hand Rehabilitation– Vestibular Therapy– Women’s Health Services– Sports Medicine Rehabilitation– Possible development of new partnerships with

High School Athletic Training Services

Market Assessment

• SWOT Analysis of SJP Outpatient Rehabilitation Services

• SWOT Analysis of Competitors Beaumont and Henry Ford

• Projected population growth• Projected payor mixes• SJ Physicians and other referral sources

Growth by Zip Code – East Region

Physical and Occupational Therapy 5 Year Growth

East Region Demographics

5 Year Procedure Growth – East Region

Analysis of Alternatives

• 18 Mile Road and Mound Road Location – West Macomb

• Partnership with Macomb Twp Parks and Recreation

• Remain in current locations• Partnership with Warren Parks and Recreation

Financial Analysis

• Volume Projections anticipated with combined staffing

• Payor Mix evaluation and predictions

• Proforma demonstrates positive operating margin

Insurance Coverage Estimates – 5 Year Projection

Projected 2018 Insurance Coverage EstimatesArea: 5 mile radius around Hall Rd and Schoehnerr

Ranked by ZIP Code(Asc)

     2018 Adjusted

Population            

 ZIP

Code ZIP City Total Medicaid MedicareMedicare

Dual EligiblePrivate -

Direct Private - ESIPrivate -

Exchange Uninsured48038 Clinton Township 41,266 6,902 7,937 793 1,793 20,543 2,399 89948042 Macomb 31,131 2,148 3,875 410 1,809 20,868 1,657 36548044 Macomb 56,687 4,217 6,344 680 3,321 38,352 3,103 67048313 Sterling Heights 33,434 5,060 5,516 562 1,568 17,999 2,000 72948314 Sterling Heights 21,930 2,589 3,846 388 1,086 12,418 1,246 35648315 Utica 27,320 3,891 5,742 556 1,230 13,875 1,456 57048317 Utica 27,393 3,409 3,511 374 1,428 16,572 1,675 424

Total 239,161 28,217 36,771 3,764 12,236 140,626 13,534 4,013% Total 100.0% 11.8% 15.4% 1.6% 5.1% 58.8% 5.7% 1.7%

Insurance Coverage Estimates 1.1ICE0002.SQP© 2013 The Nielsen Company, © 2013 Truven Health Analytics Inc.

Management Recommendation

• Favorable location

• Transfer of physician referrals to location

• Favorable demographics

• Commitment to eliminate service duplication

• Favorable financials

• Favorable Market penetration

• Recommend pursuing relocation

References

• Anderson, R. C. (2012). Rehabilitation services mission, vision, and values. Policy and Procedure Manual. Detroit: NP.

• CMS Manual System, Transmittal 119 Medicare Benefit Policy § 110-2 (January 15th, 2010).

• East Region Demographic Data compiled from © 2012 The Nielsen Company, © 2012 Thomson Reuters.

• U. S. Department of Health and Human Services, Centers for Medicare & Medicaid Services. (2012). CMS Manual System (Pub 100-02 Medicare Benefit Policy, Transmittal 165). Retrieved from http://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/Downloads/R165BP.pdf

Questions ?