University of Illinois Medical Center

1. University of Illinois Medical Center Financial Performance FY04 Budget FY05 February 19, 2004

2. Mission • High-quality, patient-oriented health care • Support of the service, education, and research responsibilities of the health sciences colleges • Fiscally responsible

3. YTD Highlights • Volume (vs. Budget) (vs. Last Year) • Discharges 0.1% -0.9% • Patient days 2.4% 2.4% • Operations I/P 24.1% 14.3% • Operations O/P -4.1% -4.5% • Clinic Visits -2.2% -0.1% • ER Visits 3.0% 2.9% • ADC 316 vs. 308 316 vs. 308 • Adjusted Census 469 vs. 457 469 vs. 449

7. DischargesAverage discharges per month (Bars)

8. Patient DaysAverage Patient Days per month (Bars)

9. Outpatient Visits Average Outpatient Visits per month (Bars)

10. FTEs and FTEs per Adjusted Occupied BedFTEs (Bars), FTEs per AOB (Line)

11. Total SalaryTotal Salary per Adjusted Patient Day (Bars) UHC Best Quartile (Dashed Line) MCGs 15 Best Quartile (Blue Line) UHC-University HealthSystem Consortium benchmark, MCG 15-Master Compare Group ACTION benchmark

12. Salary per FTESalary per FTE (Bars) UHC Best Quartile (Dashed Line) MCGs 15 Best Quartile (Blue Line) UHC-University HealthSystem Consortium benchmark, MCG 15-Master Compare Group ACTION benchmark

13. Nurse Agency(000s) Nurse Agency Average $ per Month (Bars)

14. Supply CostSupply Cost per Adjusted Patient Day (Bars) UHC Best Quartile (Dashed Line) MCGs 15 Best Quartile (Blue Line) UHC-University HealthSystem Consortium benchmark, MCG 15-Master Compare Group ACTION benchmark

15. CostCost per Adjusted Patient Day (Bars) UHC Best Quartile (Dashed Line) MCGs 15 Best Quartile (Blue Line) UHC-University HealthSystem Consortium benchmark, MCG 15-Master Compare Group ACTION benchmark

16. Fiscal Year-End Cash Balance(Millions)

17. Cash Collected (000s)Average Monthly Cash Collected (Bars)

18. Operating Income(Millions)

19. Bottom Line – Excess Revenues over Expenses(Millions)

21. Support Costs for OCC(all figures in Millions) • Clinic Administration $12.9 • Admin and General $8.3 • GME $3.3 • ITS $1.5 • Maintenance $1.3 • Depreciation $1.0 • Total Support $28.3

22. Summary of ResultsFY 2004 • Volume mixed • Increased net revenue • Salary/Wages- Increases • FTE’s • Rate • Significant- Revenue/Expense Hits

23. Budget Targets for FY04 • Positive operating margin • Improve cash position • Fund critical infrastructure needs and Strategy Initiatives

25. Key Elements of Budget(Volume and Revenue) • Small volume increases • Charge rate increase 5% • No increase from IDPH • State appropriation unchanged • Improved manage care • Continue revenue cycle improvement • Significant cost containment

26. Expense Control Initiatives • Supply chain • Operating Room supplies and equipment • Overtime • Reverse FTE creep

28. Key Elements of Cash Goal • Profitability • Reduce A/R days • Reduce inventory • Control capital spending

30. Summary Important Factors • Maintain volume • Control expenses • Supplies • Salaries • Improve revenue cycle • Large unmet capital needs

31. Questions