This document is in draft form and was prepared for the LSU Health Sciences Foundation, a supporting organization of LSUHSC-S, for discussion with LSUHSC-S .This document was not released to any potential investors nor does it constitute a request for bids or other act by LSUHSC-S The Foundation, its consultants and Management do not make any representations as to the accuracy of the included information. Fall 2012 Confidential Information Memorandum This document is confidential and proprietary to LSU Health Shreveport and is not to be copied, reproduced, or otherwise given to other parties without explicit written consent. This memorandum is a preliminary draft and for internal purposes only. This document is in draft form and was prepared for the LSU Health Sciences Foundation, a supporting organization of LSUHSC-S, for discussion with LSUHSC-S. This document was not released to any potential investors nor does it constitute a request for bids or other act by LSUHSC-S. The Foundation, its consultants and Management do not make any representations as to the accuracy of the included information.
72
Embed
Fall 2012 Confidential Information Memorandum · This memorandum is a preliminary draft and for internal purposes only. This document is in draft form and was ... independent due
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Fall 2012
Confidential
Information
Memorandum
This document is confidential and proprietary to LSU Health Shreveport and is not to be
copied, reproduced, or otherwise given to other parties without explicit written consent.
This memorandum is a preliminary draft and for internal purposes only.
This document is in draft form and was prepared for the LSU Health Sciences Foundation, a supporting
organization of LSUHSC-S, for discussion with LSUHSC-S.
This document was not released to any potential investors nor does it constitute a request for bids or other
act by LSUHSC-S. The Foundation, its consultants and Management do not make any representations as to
the accuracy of the included information.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
2
CONFIDENTIAL
INFORMATION
MEMORANDUM
Table Of Contents
TBD
EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS REGULATORY ENVIRONMENT HEALTH SYSTEM OVERVIEW SERVICES PROVIDED OPERATING STATISTICS INSTITUTIONS & FOUNDATIONS SERVICE AREA & COMPETITION FACILITIES ORGANIZATION & EXECUTIVE MANAGEMENT EMPLOYEES QUALITY OPERATIONS FINANCIAL MATTERS APPENDIX A: INSTRUCTION LETTER
3 7 11 13 20 28 34 39 46 49 56 59 64 66 72
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Executive Summary
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
4
CONFIDENTIAL
INFORMATION
MEMORANDUM
Purpose
This Information Memorandum (the “Information” or “Memorandum”) provides a summary of selected
information relating to Louisiana State University Health Sciences Center at Shreveport (“LSUHSC-S” or the
“LSU Shreveport System”). This Memorandum has been prepared by the current management and
administration team of LSUHSC-S (the “Administration”) with the assistance of i3Healthcare Consulting and
SC&H Capital (collectively, the “Consultants”). The Memorandum is being furnished solely for use by interested
parties in determining whether to proceed with further analysis of the opportunity described herein.
Neither the Management nor Consultants makes any representation or warranty, express or implied, as to the
accuracy or completeness of any of the Information. The Information is not intended to be the sole basis for
evaluation by any interested party. Should the LSUHSC-S enter into negotiations with a recipient of the
Information, it is expected that such recipient would be afforded an opportunity to perform its own
independent due diligence and investigation of the operations and financial affairs of LSUHSC-S pertinent to a
proposed transaction.
The statements in these materials have been made as of the date hereof unless it is stated otherwise. Neither
the delivery of these materials, nor the consummation of any proposed transaction after the date of these
materials, shall create any implication that the information contained herein or the affairs of LSUHSC-S have not
changed since the date hereof or that such information is correct at any time subsequent to this date. In
furnishing this information, neither LSUHSC-S nor its agents or other representatives undertakes any obligation
to update or correct the information. The information set out herein is preliminary, unaudited and has been
supplied for “information purposes” only.
LSU Health Sciences Center at Shreveport
LSUHSC-S is northern Louisiana’s regional academic medical center and teaching hospital serving the citizens of
Louisiana, as well as the communities of southwestern Arkansas, northeastern Texas and parts of Oklahoma.
LSUHSC-S operates Shreveport Medical Center, a 452 licensed-bed (352 staffed-bed) hospital, an accredited
School of Medicine, a School of Graduate Studies, and a School of Allied Health Professions in Shreveport,
Louisiana. In addition, LSUHSC-S operates as E.A. Conway Medical Center, a 247 licensed-bed (117 staffed-
bed) acute hospital in Monroe, Louisiana, and Huey P. Long Medical Center, a 137 licensed-bed (60 staffed-
bed) hospital in Pineville, Louisiana.
In fiscal year (“FY”) 2011, LSUHSC-S had approximately 30,000 total admissions, 176,000 patient days, 134,000
ER visits and nearly 510,000 outpatient clinical visits. LSUHSC-S operates by balancing missions of healthcare,
education, research, and community, serving the advanced healthcare needs of the region through its state-
designated Centers of Excellence, a Regional Trauma Center, Regional Burn Center and Feist-Weiller Cancer
Center. The LSU Health Shreveport system is one of only six US hospitals affiliated with the world-famous St.
Jude Children’s Research Hospital.
LSUHSC-S has established itself as the leading academic medical institution in Louisiana by integrating the
outstanding clinical care delivered by its medical centers’ staff and physicians, while maintaining a steadfast
commitment to over 600 faculty members currently teaching over 850 students at the Medical School, School
of Allied Health Professions and School of Graduate Studies.
Executive Summary
DRAFT
This
document
is in draft
form and
was
prepared
for
LSUHSC-S
for
discussion
with its
financial
consultants
This
document
was not
released to
any
potential
investors
nor does it
constitute a
request for
bids or
other act
by
LSUHSC-S
The
Foundation
, its
consultants
and
Manageme
nt do not
make any
representat
ions as to
the
accuracy of
the
included
information
.
5
CONFIDENTIAL
INFORMATION
MEMORANDUM
Currently, the LSU Shreveport System is under the governance of The Louisiana State University (“LSU”) Board
of Supervisors and is supported by an affiliated, nonprofit, 501(c) 3 organization: the LSU Health Services
Foundation in Shreveport. As part of its significant commitment to research and education, LSUHSC-S also
maintains a strong partnership with the Biomedical Research Foundation of Northwest Louisiana (“BRF”) which
has bonding authority.
In FY 2011, LSUHSC-S generated $355.6 million, $90.4 million, and $59.4 million in revenues and $24.5 million,
$3.1 million, and $0.5 million in EBITDA from the Shreveport Medical Center, EA Conway Medical Center in
Monroe, and Huey P. Long Medical Center in Pineville, respectively. LSUHSC-S’s success is best attributed by
the following investment highlights:
• Leading Academic Medical Center in the Ark-La-Tex Region • Access to Highly Skilled Medical Staff and Clinical Workforce • Leading Edge Patient Electronic Health Information and Care Network (“PELICAN”) • Unique Community Partnerships • Experienced Administrative Team with Proven Abilities to Run a Unified Organization • Strong Community Support
Executive Summary
Transaction Summary and Considerations
The assets of LSUHSC-S, as part of LSU Health, are currently owned by the State of Louisiana (the “State”). The
State and LSUHSC-S have expressed a preference for development of a public-private partnership(s). LSUHSC-S
and the State are willing to consider various structures, and are seeking information from strategic partners that
will specify how the mission of the LSUHSC-S academic center as a teaching and access point for patient care
will be preserved, medical education will be enhanced, and how any proposed partnership offers financial
stability, resources and growth opportunities to the entity. The potential strategic partner should provide
detailed information for their participation as outlined in the Instruction Letter (see Appendix A). The State and
LSUHSC-S have expressed a strong preference for parties indicating an ability to target a June 30, 2013 closing
date, subject to regulatory approval. In addition to commenting on mission, financial stability and growth, each
respondent should address valuation, form of consideration, transaction structure, financing, approvals and
conditions, due diligence needs and timing.
Respondents should not assume that current laws governing higher education, Civil Service, procurement, or
control of LSU hospitals will be amended or repealed. Please be advised that should a strategic partner provide
information related to a transaction, the information will be used in order to support the overall evaluative
process; however, there are no assurances that it will be considered as an acceptable transaction alternative. By
considering multiple options, the State and LSUHSC-S maintain flexibility as it seeks to achieve the goals
outlined in the separately provided Instruction Letter.
There are currently a variety of structures in which an affiliation exists between a U.S. based teaching hospital
or health system, and a school medicine.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
6
CONFIDENTIAL
INFORMATION
MEMORANDUM
Executive Summary
Transaction Summary and Considerations – Cont’d
Additionally, the manner in which the staff of physicians and other health professionals practice varies
significantly. The organizational structure can be not-for-profit, for-profit, or other corporate models involving
individuals or groups and different governing structures. In many instances, affiliates are tightly defined, while in
some situations affiliations are very loosely defined.
Proposed Structure
In light of the potential for a variety of structures, the State and LSUHSC-S examined a variety of options and
agreed separating the Hospital operations from the Physician Group and the Schools of Medicine, Allied Health
Professionals and Graduate studies, or a variation thereof is a sound starting point for seeking a public private
partnership arrangement.
For example, a private, nonprofit organization could be formed and could establish an ownership or lease
arrangement to operate LSU Medical Center-Shreveport, EA Conway Medical Center, and Huey P. Long
Medical Center. Current state employees may be transitioned into employment by a nonprofit organization.
LSUHSC-S believes it may be most appropriate that the Schools of Medicine, Allied Health Professions, and the
Faculty Practice Plan be converted into a nonprofit structure.
The Faculty Practice Plan and the hospital will be bound through a contractual relationship.
Hospital as a
Public
Organization
Faculty
Practice
Plan
Schools of
Medicine, Allied
Health, and
Graduate as
public entities
Hospital with a
Public/Private
Organization Faculty
Practice
Plan
Schools of
Medicine, Allied
Health, Graduate
as public entities
Representative Current Structure
Example of Possible New Structure
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Investment Highlights
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
8
CONFIDENTIAL
INFORMATION
MEMORANDUM
Investment Highlights Leading Academic Medical Center in Louisiana
Drawing on the LSUHSC-S’s legacy of service and teaching, area physicians and other prominent citizens
tirelessly pursued their dream of building a major academic medical center in Shreveport to create a continuum
of care with existing community hospitals and physicians. Laying the groundwork for the collaborative
relationship that continues decades later these area physicians and prominent citizens instilled opportunities for
the many public/private partnerships that have elevated healthcare services throughout the region.
Every day, incredible things happen at LSUHSC-S. As a regional referral center, the Medical Center in
Shreveport serves patients with complex medical and surgical conditions. In the role of a community resource,
LSUHSC-S provides primary and secondary healthcare for patients of all ages. In 2011, LSUHSC-S had
approximately 30,000 admissions, 176,000 patient days, 134,000 ER visits and nearly 510,000 outpatient clinical
visits. LSUHSC-S offers a comprehensive array of primary care and specialty services. Tertiary services include
a Regional Trauma Center, the region’s only Burn Center, the Feist-Weiller Cancer Center - a state-designated
Center of Excellence; an in-house Bone Marrow Transplant facility, the Sickle Cell Clinic, Children’s Hospital
and the state-designated Arthritis and Rheumatology Center of Excellence. LSUHSC-S is established in north
Louisiana, southwest Arkansas and northeast Texas as the regional referral center. LSUHSC-S has a dedicated
Transfer Center, which enables other facilities to quickly and efficiently seek transfer for their patients to higher
levels of care and specialization in the Medical Center in Shreveport.
LSUHSC-S is identified with excellence in health care, and maintains a commitment to provide ambulatory and
inpatient care for those who do not have the means to afford such care.
Access to Highly Skilled Medical Staff and Clinical Workforce
As partners in the LSUHSC-S, the School of Medicine, the School of Graduate Studies, and the School of Allied
Health play an integral role in the operations and care delivery of the Medical Center in Shreveport. The faculty
of the schools trains their respective students within the ambulatory and inpatient facilities. Most of the
graduates of the three schools choose to stay and work within the region following their graduation. Since
1973, over 66% of the graduates of the Medicine and residency teaching programs have chosen to practice in
Louisiana.
In order to offer the greatest advantage to its medical staff and the highest service to the community, LSUHSC-S
has partnered with other hospitals to share the expertise of LSUHSC-S faculty/medical staff in several medical
specialties. This has allowed the community to benefit from their expertise and experience without any
barriers. Sharing has allowed LSUHSC-S to attract an even stronger faculty.
LSUHSC-S serves as a resource for the surrounding region. Through hundreds of formal agreements that
support education and training, LSUHSC-S partners with local public school boards, other institutions of higher
education, area hospitals, and emergency first responders.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
9
CONFIDENTIAL
INFORMATION
MEMORANDUM
Investment Highlights
Leading Edge Patient Electronic Health Information and Care Network
LSUHSC-S unveiled $144 million Patient Electronic Health Information and Care Network (“PELICAN”) in late
2011, to transition from paper medical records to electronic medical records. The LSU Health System was the
first statewide, public health care network in the United States to deploy electronic health records throughout
each of its hospitals and physician clinics. PELICAN, which is based on software from Epic, will create
opportunities for more efficient management and will result in safer and higher quality patient care.
Unique Community Partnerships
LSUHSC-S is involved in a number of partnerships which have enabled them to bring highly sophisticated clinical
services to the region, which independently would not have been supportable. A few examples of this strategy
in action are:
The Regional Transplant Center (“RTC”) partnership with Willis-Knighton Health System was formed in
1989 and is certified by Medicare to provide kidney, pancreas, kidney/pancreas, liver, and liver/kidney
transplants.
The Shriners Hospitals for Children in Shreveport and LSUHSC-S combine medical teams of doctors,
nurses, therapists and orthotists to create a child-friendly environment with world-class medical care for
children with a host of orthopedic and neuromusculoskeletal disorders and diseases.
LSUHSC-S provides pediatric subspecialties for the CHRISTUS Sutton Children's Medical Center in
Shreveport.
LSUHSC-S is also affiliated with the St. Jude Children’s Research Hospital to provide world class pediatric
hematology/oncology at the Feist-Weiller Cancer Center. The hospital is one of only six hospitals in the
nation affiliated with the world-famous St. Jude Children’s Research Hospital.
Experienced Administrative Team with Proven Abilities to Run a Unified Organization
The LSUHS-S executive management team or Administration has over 250 years of combined experience in the
healthcare industry including both for-profit and non-profit hospitals. The team’s experience in the academic
health care arena is unparalleled. The Administration is comprised of Medical Doctors, Juris Doctorates, MBAs,
and professionals with other advanced degrees. As one of about 100 institutions in the U.S. constituting an
academic health sciences center that combines a medical school, a Ph.D. program in biomedical sciences, degree
programs in allied health professions and one or more teaching hospitals, the Administration has demonstrated
its ability to run a highly effective organization across many core competencies.
Throughout its history, LSUHSC-S has taken pride in its ability to manage within its financial means. Without
fail, LSUHSC-S has provided excellence in tertiary healthcare, served the needs of the uninsured and under-
insured, supported the commitment to educating and training new physicians and healthcare staff, and
sponsored clinical research.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
10
CONFIDENTIAL
INFORMATION
MEMORANDUM
Investment Highlights
Strong Community Support
LSUHSC-S enjoys strong support from the Northeast, Northwest, and Central Louisiana regions. LSUHSC-S
employs over 5,900 people, making it the largest employer in the City of Shreveport and the fourth largest in
Northwest Louisiana. As one of the largest employers in the region, it is recognized as an economic engine.
Members of the regional community have made substantial philanthropic contributions to LSUHSC-S programs.
The LSU Health Sciences Foundation in Shreveport, which is a private, nonprofit corporation, exempt from
Federal income tax under 501(c)(3) of the Internal Revenue Code, was chartered by the Secretary of State in
1997 and manages and invests LSUHSC-S endowments, which include seven chairs and 40 professorships.
Additionally, The Biomedical Research Foundation (BRF) is an independent, nonprofit, 501(c)(3) organization
established in 1986, which supports biomedical research at LSUHSC-S in addition to other initiatives.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Regulatory Environment
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
12
CONFIDENTIAL
INFORMATION
MEMORANDUM
Rules & Regulations
Charity Care
Hospitals are permitted to acquire tax-exempt status under the Internal Revenue Code (the “Code”) formerly
the Internal Revenue Code of 1986, because the provision of health care has been historically treated as a
“charitable” enterprise. This treatment arose before most Americans had health insurance, when charitable
donations were required to fund the health care provided to the sick and disabled. Some commentators have
taken the position that, with the onset of employer health insurance and governmental reimbursement
programs, there is no longer any justification for special tax treatment for the health care industry, and the
availability for tax-exempt status should be eliminated. LSUHSC-S considers the likelihood of such a dramatic
change in the law to be remote; nevertheless, federal and state tax authorities are beginning to demand that tax-
exempt hospitals justify their tax-exempt status by documenting their charitable care and other community
benefits.
The Senate Finance Committee is also considering a policy option that would codify organizational and
operational requirements for determining whether a hospital is a charitable organization under Section
501(c)(3) of the Code. Such requirements include, among other things, that Section 501(c)(3) hospitals
regularly conduct a community needs analysis, provide a minimum annual level of charitable patient care, not
refuse service based on a patient’s inability to pay and follow certain procedures before instituting collection
actions against patients.
Louisiana Medicaid
In Louisiana, the total annual expenditure for the Medicaid program is limited by the State legislature in the
general appropriations bills. The recommended appropriation for State Fiscal Year 2012-2013 is $7.5 billion
allocated to medical vendor payments and $333 million allocated to medical vendor administration, which
includes claims processing.
The appropriation for State Fiscal Year 2011-2012 was over $6.6 billion allocated to medical vendor payments,
and almost $308 million allocated to medical vendor administration.
Licensing, Surveys, Investigations and Audits
Health facilities, including LSUHSC-S, are subject to numerous legal, regulatory, professional and private
licensing, certification and accreditation requirements. These include, but are not limited to, requirements
relating to Medicare Conditions of Participation, requirements for participation in Medicaid, state licensing
agencies, private payors and the accreditation standards of The Joint Commission. Renewal and continuation of
certain of these licenses, certifications and accreditations are based on inspections, surveys, audits,
investigations or other reviews, some of which may require affirmative actions by LSUHSC-S and the other
Members of the Obligated Group. Management of LSUHSC-S currently anticipates no difficulty renewing or
continuing currently held licenses, certifications or accreditations.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Health System Overview
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Arkansas
Texas
Louisiana
Total Service Area
14 CONFIDENTIAL
INFORMATION
MEMORANDUM
Shreveport Medical
Center
Huey P. Long Medical
Center
EA Conway Medical
Center
LSUHSC-S currently serves three Primary Service Areas (“PSAs”) through it facilities in Shreveport, Monroe
and Pineville defined as (1) the Northwest Louisiana Region, which encompasses the Shreveport-Bossier
Metropolitan Statistical Area (“MSA”) , (2) the Northeast Louisiana Region, which encompasses the Monroe
MSA, and (3) the Central Louisiana Region which encompasses the Alexandria MSA. In fiscal year 2011, these
PSAs accounted for 96.3% of LSUHSC-S total inpatient visits and 97.9% of total outpatient visits.
Additionally, LSUHSC-S attracts patients from throughout the State of Louisiana due to its high quality of care,
as well as from east Texas and southwest Arkansas, commonly referred to as Ark-La-Tex.
Northeast Louisiana (Shreveport Medical Center Service Area)
Northwest Louisiana (EA Conway Service Area)
Central Louisiana (Huey P. Long Service Area)
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Current Organization
15 CONFIDENTIAL
INFORMATION
MEMORANDUM
LSUHSC-S is currently under the governing authority of The Louisiana State University System, which consists
of six campuses, two academic centers, and the Health Care Services Division. Four entities are specifically
devoted to health care– the Health Care Services Division, two health sciences centers (LSU Health Sciences
Center at New Orleans and LSU Health Sciences Center at Shreveport, and Pennington Biomedical Research
Center. Since 1997, the Health Care Services Division administers all of the medical centers—the former
charity hospitals in Louisiana—except those located in north and central Louisiana, which are business units of
LSUHSC-S.
This proposed transaction only involves the three medical centers, as highlighted in the diagram below.
LSUHSC-S encompasses the Schools of Medicine, Graduate Studies, and Allied Health Professions in
Shreveport, the Shreveport Medical Center, EA Conway Medical Center in Monroe, and Huey P. Long Medical
Center in Pineville.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Overview and History LSUHSC-S is the leading regional academic medical center and teaching hospital in the northern part of
Louisiana (the “State”) and serves the healthcare needs of the citizens the State as well as the communities of
southwestern Arkansas, northeastern Texas and parts of Oklahoma. The Company operates a 452 licensed-bed
(352 staffed-bed) Medical Center in Shreveport (“SMC”), Louisiana which encompasses the operations of an
accredited School of Medicine, School of Graduate Studies, School of Allied Health Professions, as well as
administrative control of the 247 licensed-bed (117 staffed-bed) E.A. Conway Medical Center in Monroe,
Louisiana and the 137 licensed-bed (60 staffed-bed) Huey P. Long Medical Center in Pineville, Louisiana.
LSUHSC-S roots date to 1876 as Shreveport Charity Hospital. In 1976 the State Legislature authorized the
transfer of the Charity Hospital to the LSU System and granted LSUHSC-S the right to retain self-generated
funds above budgeted amounts which could be reinvested into facilities or programs. The requirement for
legislative approval prior to modifying clinical programs was also dropped leading the way for change of
philosophy from a state charity hospital to a university teaching hospital. In 2000, the LSU Board of Supervisors
established an autonomous chancellorship at LSUHSC in Shreveport. Shortly thereafter, the Schools of
Graduate Studies and Allied Health Professions gained accreditations independent of their New Orleans
counterparts, formally becoming autonomous schools. In 2003 and 2007, respectively, the Legislature
transferred administrative control of the E.A. Conway Medical Center in Monroe and the Huey P. Long Center
in Pineville to LSUHSC-S.
Today Shreveport Medical Center is a university teaching hospital offering primary, tertiary, and quaternary care
to its patients. It also serves as a safety net hospital, dedicated to providing basic healthcare for the
underprivileged in the area through outpatient and wellness clinics as well as access to urgent and emergency
care. As a training site for many medical, nursing and allied health students, including more than 500 doctors
who receive advanced training in residency programs, the hospital has achieved distinction and international
recognition for basic science and clinical research programs that contribute to the body of knowledge and
practice in science and medicine. It supports the region and the State of Louisiana in economic growth and
prosperity by utilizing research and knowledge to engage in productive partnerships with the private sector.
As a healthcare organization receiving the Joint Commission's Gold Seal of Approval, Shreveport Medical
Center boasts many specialized programs such as the Feist-Weiller Cancer Center and Department of Arthritis
and Rheumatology, which were both designed by the Louisiana Board of Regents as Centers of Excellence. The
Shreveport Medical Center is one of only six hospitals in the nation affiliated with the world-famous St. Jude
Children’s Research Hospital. Through the expertise of medical school faculty who compose the hospital's
medical and dental staff, the hospital has developed sophisticated resources such as a regional Trauma Center,
Regional Burn Center, Extracorporeal Membrane Oxygenation (ECMO) program, and Gamma Knife.
In 2011, Shreveport Medical Center became the first in the LSU Health system to implement electronic health
records. The hospital also added robotic surgery and a hybrid vascular operating room. This dedication to
improvement proves the hospital’s dedication to continuous growth and technological advancement.
16
Overview
CONFIDENTIAL
INFORMATION
MEMORANDUM
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
17
Overview
10.3% 17.4%
39.3%
CONFIDENTIAL
INFORMATION
MEMORANDUM
35.8%
$1.23 MM
$1.77 MM
$4.49 MM $2.10 MM
Clinical Integration The primary mission of Louisiana State University Health Sciences Center Shreveport (LSUHSC-S) is to provide education,
patient care services, research, and community outreach. LSUHSC-S encompasses the LSU Schools of Medicine, Graduate
Studies, and Allied Health Professions in Shreveport, the LSU Medical Center in Shreveport, E. A. Conway Medical Center
in Monroe, and Huey P. Long Medical Center in Pineville. In implementing its mission, LSUHSC-S is committed to:
Educating physicians, basic scientists, residents, fellows and allied health professionals based on state-of-the-art curricula,
methods, and facilities, preparing students for careers in health care service, teaching or research.
Providing state-of-the-art clinical care, including a range of tertiary special services, to an enlarging and diverse regional
base of patients.
Achieving distinction and international recognition for basic science and clinical research programs that contribute to the
body of knowledge and practice in science and medicine.
Supporting the region and the State in economic growth and prosperity by utilizing research and knowledge to engage in
productive partnerships with the private sector.
Together, the leaders and staff of the LSUHSC-S have assessed and determined the clinical care needs of the region’s
population. Jointly, the member institutions of the LSUHSC-S have brought together the resources, including staff, facilities
and technology to answer these needs. Led by a single management team, a single vision for integrating the many assets
and skills has been established. This vision defines the strategy for the leadership and is the blueprint for their operating
initiatives. By doing so, the members of the LSUHSC-S have provided, and will continue to provide, a wide variety of
specialized services with strong connectivity between campuses, specialties and disciplines.
Some of the key advantages offered by the LSUHSC-S’s model for integrated care are:
One leadership team oversees the physician/faculty services and our three medical centers in Shreveport, EA Conway
Medical Center in Monroe and Huey P Long Medical Center in Pineville.
Full range of medical specialties offered within our three medical centers, many delivered at a tertiary level of care to
patients at the Medical Center in Shreveport.
Emergency services at each of our three medical centers, including a Regional Trauma designation at our Shreveport
facility. Our Regional Trauma service is completely integrated with our critical care, neurology/neurosurgery,
orthopedic and surgical programs so that we can achieve the best outcomes for our patients.
The Ambulatory Care Clinics, located in the Ambulatory Care Building, serve the Ark-La-Tex community by providing
excellence in patient care services, a teaching facility for training future medical and allied health professionals, and an
environment conducive to medical and scientific research. The clinics provide varying degrees of care: urgent, acute,
chronic, specialty, primary, diagnostic, rehabilitation, minor surgical procedures, and heath care prevention/maintenance
for all ages.
In 2011, the Shreveport campus completed implementation of an electronic health information record (EHR) system.
The EHR’s chief benefit is enhanced patient safety, and improved quality of care by making all of a patient’s medical
information readily available and easy to find for clinicians throughout the campus. With Shreveport’s implementation
complete, the project team has moved to LSU Health Shreveport’s EA Conway Medical Center in Monroe and Huey P.
Long Medical Center in Pineville.
LSUHSC-S maintains strong alliances and affiliations with other health care providers based on its belief that it must
maximize the benefits of limited resources within the community by avoiding unnecessary duplication. A few examples
include:
o Shriners Hospitals for Children in Shreveport, an affiliate program for Pediatric Orthopedic Surgery
o St. Jude Children's Research Hospital, an affiliate program for Pediatric Oncology
o Willis-Knighton Health System, affiliate programs for Neurosurgery, Transplantation Surgery, and Urology
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
18
Overview
CONFIDENTIAL
INFORMATION
MEMORANDUM
EA Conway Medical Center, located in Monroe, Louisiana, serves a 12-parish area in northeast Louisiana
with a full range of diagnostic and treatment services with a medical staff of 48 physicians. With services
dating from 1941, the current facility opened in 1987.
The hospital has adult critical care and neonatal units, as well as a fully staffed emergency department.
Inpatient services also include family medicine, medicine, pediatrics, obstetrics/gynecology, general surgery,
orthopedics, urology, ophthalmology and psychiatry. For diagnostic services, the hospital has a state-of-the-
art MRI system and 24-hour teleradiology for off-site and after-hours readings. EA Conway has also recently
opened a satellite outpatient clinic of the Feist-Weiller Cancer Center.
As a public hospital, EA Conway also serves the healthcare needs of the area corrections facilities with
secure and separate inpatient and outpatient clinic facilities and provides evaluation for emergency psychiatric
admissions in an isolated and locked seven-bed unit.
Since 1982, EA Conway has served as the sponsoring institution for a three-year Family Medicine Residency
Program. In addition to the benefit of training future physicians, the program has an ongoing positive impact
on healthcare in the region since about half of the graduates remain in northeast Louisiana to practice.
Resident physicians based at Shreveport Medical Center rotate through EA Conway for part of their training.
These include Surgery, Ob/Gyn, Psychiatry, and Pediatric residents. EA Conway also train pharmacy, nursing,
and allied health program students.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
19
Overview
CONFIDENTIAL
INFORMATION
MEMORANDUM
Built in 1939, Huey P. Long is a 137 licensed-bed (60 staffed-bed) acute care hospital with inpatient and
outpatient services in Pineville. It provides service for a nine-parish region of central Louisiana. In 2011, the
hospital earned the Louisiana Hospital Capstone Award for Quality Improvement. In October 2012, the
hospital was recognized as one of the top performers on key quality measures by the Joint Commission.
In 2011, it had 2,353 inpatient admissions and 119,438 outpatient visits.
Huey P. Long is a site for clinical rotations for physician residents and medical students from LSU and Tulane.
The medical center also offers an accredited pharmacy practice residency in conjunction with the School of
Pharmacy at the University of Louisiana in Monroe.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Services Provided
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
The physicians and staff of LSUHCS-S provide state-of-the-art healthcare services and high-quality patient care
within a setting that advances medical science through research while educating the next generation of leaders.
Departments and services offered by each LSUHSC-S hospital and Center of Excellence are outlined below as
follows:
Shreveport Medical Center Shreveport Medical Center is a 452 licensed-bed (352 staffed-bed) facility serving north Louisiana, east Texas,
and southern Arkansas. LSUHSC-S had 22,062 inpatient admissions and 422,733 outpatient visits in 2011.
Specialties
Services Provided
o Allergy & Immunology
o Anesthesiology
• Pain Medicine
o Colon & Rectal Surgery
o Emergency Medicine
o Family Medicine
o Forensic Psychiatry
o Hematology
o Hematology/Oncology
o Internal Medicine
• Cardiovascular
• Clinical Cardiology
• Critical Care
• Endocrinology
• Gastroenterology
• Hematology
• Hematology/Oncology
• Infectious Disease
• Medical Oncology
• Nephrology
• Pulmonary Disease
• Rheumatology
• Sleep Medicine
• Transplant Health
o Medical Genetics
• Clinical Cytology
o Neurology
o Neurosurgery
o Obstetrics and Gynecology
o Ophthalmology
o Oral and Maxillofacial Surgery
o Oral Surgery
o Orthopaedic Surgery
o Orthopedics
o Otolaryngology
o Plastic Surgery
o Pathology
• Clinical
• Cytopathology
• Forensic
o Adolescent Medicine
o Pediatrics
• Neonatal-Perinatal
• Endocrinology
• Gastroentology
• Hematology
• Infectious Disease
• Nephrology
• Pulmonology
• Cardiology
o Plastic Surgery
o Psychiatry
• Addiction
• Forensic
• Psychosomatic
o Radiology
• Nuclear Radiology
• Radiation Oncology
o Sleep Medicine
o Surgery
• Oncology
• Pediatric
• Surgical Critical Care
• Thoracic
o Trauma
o Urology
21
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
Services Provided
EA Conway Medical Center – Monroe EA Conway Medical Center is a 247 licensed-bed (117 staffed-bed) facility serving a 12-parish area in Northeast
Louisiana. EA Conway’s medical staff of 48 physicians provide a full range of diagnostic and treatment services.
The Center had 6,672 inpatient admissions and 169,384 outpatient visits in 2011.
Hospital-Based Services and Specialties
o Emergency Medicine
o Family Medicine
o Internal Medicine
o Medicine/Pediatrics
o Ophthalmology
o Orthopedics
o Obstetrics/Gynecology
o Pathology
o Pediatrics Medicine
o Psychiatry
o Radiology
o Surgery
Huey P Long Medical Center – Pineville and Alexandria Huey P Long Medical Center is a 137 licensed-bed (60 staffed-bed) acute care hospital with inpatient services in
Pineville and extensive outpatient clinics. The hospital in Pineville was built in 1939, and provides services for a
nine-parish region of Central Louisiana. The Center had 2,353 inpatient admissions and 119,438 outpatient
visits in 2011.
Hospital-Based Services
o Gynecology
o Adult Cardiology
o Pediatric Medicine
o Psychiatry
o Medicine
22
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
23
Selected Specialties
10.3% 17.4%
39.3%
CONFIDENTIAL
INFORMATION
MEMORANDUM
35.8%
$1.23 MM
$1.77 MM
$4.49 MM $2.10 MM
Neurosurgery
The University Neurosurgery department provides cutting-edge patient care, conducts world-class clinical and
basic research, and offers the highest quality undergraduate and graduate medical education experiences. The
department provides comprehensive treatment of injuries associated with the brain, spine and spinal cord
trauma. The hospital integrates training, research, and technology to help it identify problems and provide the
best treatment for each individual.
The hospital provides state-of-the-art neuroscience treatment facilities including Gamma Knife, Neuro ICU, and
Interventional Neuroradiology and are recognized as the leader for neuroscience in the South.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
24
Selected Specialties
10.3% 17.4%
39.3%
CONFIDENTIAL
INFORMATION
MEMORANDUM
35.8%
$1.23 MM
$1.77 MM
$4.49 MM $2.10 MM
Gamma Knife
The Gamma Knife has been used in the treatment of more than 200,000 patients at leading healthcare
institutions worldwide. Almost half of these Gamma Knife centers are located in the U.S., and University
Neurosurgery at LSUHSC-S is the first in the State of Louisiana to acquire this technologically advanced
machine. LSUHSC-S has completed over 800 procedures, becoming a leader in stereotactic radiosurgery in the
South.
Unique Treatment Possibilities
The procedure stands unique in its ability to reach areas of the
brain that remain inaccessible through conventional surgery. This
enables patients who were once considered inoperable due to
deeply seated abnormalities or critically located lesions to receive
treatment/cure for their disorders.
Non-invasive & Cost-effective
Through its non-invasive approach to neurological disorders,
Gamma Knife radiosurgery has proven to be a highly cost-effective
method of treatment. By significantly reducing hospital stays and
eliminating post-operative complications such as infection and
hemorrhage, the procedure can cost 30 – 70% less than
conventional surgery.
Sophisticated Technology & Experienced Staff
Patients who choose Gamma Knife radiosurgery at LSUHSC-S for
the treatment of their neurological disorders can remain confident
that their surgery is performed using the most advanced
technology and experienced staff in the field.
DRAFT
This document
is in draft form
and was
prepared for the
LSU Health
Sciences
Foundation, a
supporting
organization of
LSUHSC-S, for
discussion with
LSUHSC-S .This
document was
not released to
any potential
investors nor
does it constitute
a request for
bids or other act
by LSUHSC-S
The Foundation,
its consultants
and
Management do
not make any
representations
as to the
accuracy of the
included
information.
25
Selected Specialties
CONFIDENTIAL
INFORMATION
MEMORANDUM
Center of Excellence
Feist-Weiller Cancer Center
Feist-Weiller Cancer Center was designated as a Center for
Excellence in Cancer Research, Treatment, and Education in
1993 and is made up of both inpatient and outpatient
services. The inpatient unit has 16 beds dedicated to Adult
Oncology patients and 12 beds for Bone Marrow Transplants
patients. Medical oncologists and hematologists at Feist-Weiller Cancer
Center are board certified in internal medicine, then specially
trained and certified in medical oncology and/or
hematology. Specialists in Surgical Oncology, ENT Oncology,