Faculty Orientation Overview of Clinical Enterprise

1. Faculty Orientation Overview of Clinical Enterprise

2. University of Maryland Medical System University System of Maryland University of Maryland, Baltimore University of Maryland Medical Center + 8 Others School of Medicine University of Maryland Faculty Physicians, Inc. Professional Associations “PA”s . . . Clinical Departments . . . Each PA has its Own Tax ID Chairman President Chief of Service

3. University State Structure Separate 501(c)3 Practice Plan Structure As defined in the Medical Service Plan (MSP) FPI Administration (oversees MSP) Medical School Enrichment Fund School of Medicine • Assessments: • MSP Trust • Clinical Redesign • Business Development • Contingency Reserve Fee For Service Purchases Dean’s Tax Services Clinical Departments Department of Neurology Neurology P.A. • 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 Department of Surgery Surgery P.A. etc. etc. Departments: 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 • Grants • State funding • PSC revenue • State employees Firewall University of Maryland School of MedicineFPI vs. State Structure

4. University of Maryland Faculty Physicians, Inc.

5. 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)

6. 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

7. University of Maryland Faculty Physicians, Inc.Practice Locations

8. 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

9. Volumes and Growth

10. University of Maryland Faculty Physicians, Inc.Patient Care Statistics

11. University of Maryland Faculty Physicians, Inc.Total Clinical Revenue FY 2008 – FY 2012 244.3 227.2 210.0 212.7 194.5 Millions Professional Fee Revenue Clinical Revenue (Non Fee for Service)

12. Major Initiatives and Challenges

13. University of Maryland Faculty Physicians, Inc.Major Initiatives Ambulatory Electronic Medical Record (EMR) • Accelerated Implementation • 11 Departments • 420 Faculty • Approximately 2/3 complete with implementation • Meaningful Use • Federally defined standards • Changes to work flow in practices • Physician committee leading the transition • Medical System • Moving to outpatient and inpatient implementation • FPI considering revenue cycle conversion as well

14. 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

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

16. University of Maryland Faculty Physicians, Inc.Payer Mix MISC COMMERCIAL MEDICAID MEDICARE RESPONSIBLE PARTY

18. 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

19. Thank You