Faculty Orientation

Overview of Clinical Enterprise

University System of Maryland

University of Maryland, Baltimore

School of Medicine

Clinical Departments

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University of Maryland Faculty Physicians, Inc.

Professional Associations “PA”s

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University of Maryland Medical System

University of Maryland Medical Center

Each PA has its Own Tax ID

Chairman President Chief of Service

+ 8 Others

University of Maryland School of MedicineFPI vs. State Structure

Separate 501(c)3Practice Plan StructureAs defined in the Medical Service Plan (MSP)

FPI Administration(oversees MSP)

Medical School Enrichment

Fund

etc.

Department of Neurology

University State Structure

FeeForServicePurchases

Dean’s Tax

Assessments:MSP TrustClinical RedesignBusiness DevelopmentContingency Reserve

Neurology P.A.

Department of Surgery

PA’s:

•Must comply with MSP•Lease staff from UPI•Do their own billing•Have their own P & L•Separate corporations•Run their own ambulatory care

FirewallFirewall

School of Medicine

Surgery P.A.

Clinical Departments

Departments:

•Grants•State funding•PSC revenue•State employees

Services

MSP Services (examples):

• Contracting (Managed Care & Legal)

• Real Estate

• Internal Audit

• Oversight

• Compliance

Fee for Service Services (examples):

• HR Recruitment

• PA Accounting

• Practice IT

• Temporary Help

etc.

University of Maryland Faculty Physicians, Inc.

University of Maryland Faculty Physicians, Inc.

Created by the University System Board of Regents through the Medical Service Plan (MSP)

Support the clinical care mission of the School of Medicine and the activities of the faculty practice groups

Provide the mechanism through which professional fee income is billed, collected and distributed for the benefit of the faculty and the School of Medicine

Assure compliance with the Medical Service Plan (MSP)

University of Maryland Faculty Physicians, Inc.

Organizational Structure

All Full-time and Part-time clinical faculty participate in the Plan

The Board of Trustees, comprised of the SOM clinical department chairs and the Dean of the SOM, governs the organization

University of Maryland Faculty Physicians, Inc.Practice Locations

University of Maryland Faculty Physicians, Inc. Downtown Practice Locations

The Medical Center and its Clinics

419 West Redwood – the Professional Building

Eutaw Street – the Frenkil Building

Family Medicine

Penn Street – OB/Pediatrics

Volumes and Growth

University of Maryland Faculty Physicians, Inc.Patient Care Statistics

FY11 FY12 % Change

Total Patient Volumes (includes office and inpatient/outpatient visits)

1,131,405 1,169,079 3.3%

Admissions(UMMC only; includes newborns and trauma) 39,585 37,899 -4.3%

Inpatient Surgeries(UMMC only; includes trauma)

14,896 15,729 5.6%

University of Maryland Faculty Physicians, Inc.Total Clinical Revenue FY 2008 – FY 2012

FY08 FY09 FY10 FY11 FY12$0

$40

$80

$120

$160

$200

$240

$280

168.3 176.4 174.2 179.1 187.9

26.233.6 38.5 48.1

56.4

Mill

ion

s

194.5210.0 212.7

227.2244.3

Professional Fee Revenue Clinical Revenue (Non Fee for Service)

Major Initiatives and

Challenges

University of Maryland Faculty Physicians, Inc.Major Initiatives

Ambulatory Electronic Medical Record (EMR)

Accelerated Implementation11 Departments 420 FacultyApproximately 2/3 complete with implementation

Meaningful UseFederally defined standardsChanges to work flow in practicesPhysician committee leading the transition

Medical SystemMoving to outpatient and inpatient implementationFPI considering revenue cycle conversion as well

University of Maryland Faculty Physicians, Inc.Major Initiatives

Increased Integration and Efficiencies

Performance Based Incentive Compensation (PBIC) Plan Roll-out Moving to a Phase II, Multi-mission Plan

Developed a Mechanism to Invest Cash in UMMS Operating Pool Professional management Significantly greater returns Applies to balances in excess of 90 days cash on hand

Used GE Consultants to Review the GE Revenue Cycle System Changed Name to University of Maryland Faculty Physicians, Inc.

Standardized use of logo and use of PA names Consolidated More Administrative Services in 250 W. Pratt

University of Maryland Faculty Physicians, Inc.Fiscal Year 2013 and Beyond

Challenges Ahead

• Decant Appropriate Cases to Maryland General Hospital To be Re-named and Re-branded

• Rebuild St. Joseph Medical Center

• Hospital Rate Pressures

• At a Minimum, Have a Plan for Success in New Healthcare Delivery Models

• Eroding Payer Mix and Reduced Professional Fee Reimbursement

University of Maryland Faculty Physicians, Inc.Payer Mix

2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

44.4% 44.5% 42.5% 41.8% 40.9%

20.1% 20.5% 23.6% 25.0% 26.3%

25.8% 26.2% 25.4% 25.3% 24.8%

4.7% 3.6% 3.3% 2.6% 3.4%5.0% 5.2% 5.2% 5.2% 4.6%

5 Year Trend - Charge Payer Mix

COMMERCIAL MEDICAID MEDICARE RESPONSIBLE PARTY MISC

University of Maryland Faculty Physicians, Inc.Fiscal Year 2013 Initiatives

• Service Excellence

• Epic Implementation with Meaningful Use Reporting

• Pursue Off-Campus Growth Opportunities

• Work with UMMS on New Delivery Models and Incentives

• Phase II Performance Based Incentive Compensation

• Collaboration with College Park on a Magnet Sports Medicine Program

Thank You