CASH PAY INNOVATION. DOMESTIC MEDICAL PROFITABILITY ...€¦ · CASH PAY DOMESTIC MEDICAL TRAVEL PROGRAM DEVELOPMENT FOR ASCs Ty Tippets, Administrator Maria Todd, Dir Business Development

CASH PAY

DOMESTIC MEDICAL

TRAVEL PROGRAM

DEVELOPMENT

FOR ASCs

Ty Tippets, AdministratorMaria Todd, Dir Business Developmenthttps://StGeorgeSurgical.com

PRICE TRANSPARENCY.

INNOVATION.

PROFITABILITY.

Agenda

• Problem Solution

• Executive Summary

• Brief History

• Industry Situation

• Company Analysis

• Alternatives

• Implementation

• Results

THE BACK STORY

• The Challenge

•Hypothetical Solution

•How we got here• Industry Situation• St George Surgical Center

• Located in sunny St. George, in southern Utah, SGSC is a multi-specialty surgical facility, physician-owned and operated.

• Board Certified Surgeon & Anesthesia Providers

• Prestigious AAAHC Accreditation

• Medicare Certified

• 99.6% patient satisfaction rate

• Extremely low infection rate, 0.037% (Natl Avg 2.6%)

• 11,000 sq ft with 4 state-of-the-art surgery suites

• 23-hour Overnight/Extended Stay facility (the only ASC in Southern Utah with overnight capabilities)

• Located in a popular tourism area

• 5 National Parks + Las Vegas

• Topographically unique

• Easy access regional airport

• Tourism generates $1350+ tax

relief per household

EXECUTIVE SUMMARY

Problem + Hypothetical

Solution

Market Data that supported our

solution

What competitors were doing

Response to what was happening in

the industry

1

2

3

4

KEY INTERNAL CHALLENGES

Owner Buy-In

Non-owner Physician

participation

Cost Data / Pricing Integrity1

How to connect with the market?

No instruction manual or

guide

Operations & Infrastructure4

32

5 6

INDUSTRY ANALYSIS

Payor-dictated Fee Schedules

Unrelated to Costs

Health PlanLockouts or

Absence in Market

Lack of Controlover Destiny1

Undifferentiated Commoditization

by Payors

LimitedGeographical

Area

Lack of Price

Transparency4

32

5 6

MACRO ENVIRONMENTAL ANALYSISPorter’s Five Forces

SUBSTITUTION

SUPPLIER

POWER

BUYER

POWER

NEW

RIVALS

COMPETITION

• Hospitals• Other ASCs

• Innovation• Pricing

• Cash Patients• ERISA Employers

• Local Imitators• Hospital Antics

RESULTS

CASE GROWTH OVER TIME

2015 2016 2017 2018 2019

48 24 66 121 189

RESULTS

CASH PAY RECEIPTS OVER TIME

2015 2016 2017 2018 2019

$60,409 $72,791 $82,017 $549,251$172,099

RESULTS

PERCENTAGE OF NET PROFIT

2015 2016 2017 2018 2019

5% 10% 11% 23% 29%

$21,143 $25,442 $28,706 $60,235 $192,238

RESULTS

EARNED MEDIA

MEDICAL TRAVEL PROGRAM INFRASTRUCTURE

SOFTWARE

• EMR integration

• Medical records transfer

• Handoffs

• Health privacy & security

• Telehealth communications

• Bundled Price Integrity

• Business Analysis

• Quotation Management

• Continuity of care

• Logistics & Travel

• Forms management

• EMR integration

• UB-04 / CMS 1500

PRODUCT DEVELOPMENT

Quality?• Clinical and Patient-reported

Outcomes • Lower infection rates• Lower revision rates? • Lower complications?

What is the “product”• Is it just the Surgery?• Is it just the lower

price?

• Latest Surgical Approaches?

• Technology?

• Elevation?

• Destination Experience?

Who are the customers?Market Segments• Consumers?• Payors?• Employers?

BRANDING

• Rule #1: Know Your Customer(s)

• Brand standards creation and enforcement

• “Living” brand

• Local / regional tourism authority

• Trade Missions / Outreach / Events

• Destination Development – Trading Partner Collaboration

STAFF TRAINING

• Call handling

• Email inquiries

• Price quotes

• Contracts with payers

• Talking points

• Care coordination

• Travel planning

• Hotel inspections

• Handoffs to Surgeon

• Discharge Management / Fit to Travel

• Handoffs Back Home

• Patient Consultation

• Setting Expectations

• Discussion of Payment Options

• Billing to 3rd Party Payors

• How to Handle HMO / PPO Inquiries

TRAVEL TRAINING

• Special needs logistics coordination & support• Altitude physiology• Ticketing & reservations• Minimum connecting time• Special meals• Proper accommodation / food / beverage / prescription delivery services• Aircraft size and configuration• Airport handling and planning (lifts/wheelchair assistance)• Immigration & visa (Foreign Patients)• Travel agents & tour operators• Destination management firms

HOTEL SELECTION

✓Proper accommodations✓Hotel expectations✓Staff language fluency✓Food & beverage options✓Service, safety & security✓Amenities & activities✓Communications & policies✓Resort Fees✓Fitness Center policy on outside PTs/Trainers✓“No-walk policy”✓Unanticipated changes to reservations (extensions / early check in)✓Call bells / emergency situations

TRANSPORTATION

✓Airport readiness

✓Taxi and car rentals

✓Private livery services

✓Driver training and safety

FOOD & BEVERAGE

✓Special preparations

✓Special ingredients

✓Allergy and portion management

✓Healthful cultural local cuisine

FINANCING

✓No interest

✓Non-recourse

✓High acceptance rate

✓Affordable payments

✓Adequate to pay for your most expensive cases

STATISTICS, MEASUREMENT & EVALUATION

Clinics’Hospitals’Hotels’Competitors’

Service Delivery Satisfaction

Return on Investment

Program Growth

Website Page Hits / Revisits /

Website Conversions to Cases

Social Media Growth / Engagement

STATISTICSMEASUREMENT

END GOAL?

• Unimpeachable integrity /quality

• Fairness

• Brand Awareness / Loyalty

• Physician Renown

• Capital for New Technologies

• Higher Salaries /Greater Staff Retention

PROFIT /

GROWTH

Thank you!St George Surgical Center

676 South Bluff Street

St George, Utah 84770

(844) 673-0095

[email protected]@sgsc.net