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1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

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Page 1: 1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

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MHA Update and Strategic OutlookMRRN MeetingMarch 18, 2015

Brian PetersCEO-Designate

Page 2: 1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

Full Disclosure - About MHA

• Established in 1919; Nonprofit (501C6)• Approximately 100 employees • Locations: Okemos campus; Downtown Lansing (CAC)• Mission: We advocate for hospitals and the patients they

serve. • Primary Membership: hospitals / health systems• Subsidiaries: MHA Service Corporation (for-profit) and

MHA Health Foundation (501c3)• HealthPAC (perennial Top 10 independent Political

Action Committee)

Page 3: 1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

Physician Leadership at MHA

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Gary L. Roth, D.O., FACOS, FCCM, FACS Medical DirectorMichigan Health & Hospital Association Keystone Center

Page 4: 1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

Physician – Hospital Collaboration

•Medicaid Expansion•Auto No-Fault•GME•Medical Liability •Patient Safety & Quality•Physician Leadership Education•Economic Impact of Healthcare Report

Page 5: 1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

The Outlook: Major Themes

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•More integrated•More at-risk•More transparent•More importance attached to advocacy/public policy

“56-20-1”

Page 6: 1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

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More Integrated

• 1980: 236 Hospitals; 49,369 total beds–Nearly all independent

• 2015: 133 Hospitals; 24,617 total beds–20 systems = over 100 hospitals–8 out-of-state systems (4 for-profit) –36 Critical Access Hospitals (1,300 in U.S.)

•65% of practicing Michigan physicians are either employed or “near-employed” by hospitals•MHC – GLHIE merger

Page 7: 1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

More At-Risk

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Rise of high-deductible plans577,000 enrolled in MI (5th highest in nation)

Private exchanges70,000 in Michigan – and growing

Narrow networksValue-Based ContractingReference pricing; shift from “cost-based pricing” to “price-based costing”CMS payment penalties Medicare enrollment = dramatic increase (Baby Boomers)Medicaid Expansion = 500,000 new lives in MichiganPatient loyalty to “brand” vs. consideration of price

Page 8: 1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

More Transparent

MHA Keystone: Care TransitionsMHA Keystone: CA-UTIMHA Keystone: ERMHA Keystone: Gift of LifeMHA Keystone: ICUMHA Keystone: OBMHA Keystone: Safe CareMHA Keystone: SepsisMHA Keystone: SurgeryMHA Keystone Hospital Engagement Network (HEN)On the CUSP: Stop BSIOn the CUSP: Stop CA-UTIMHA Patient Safety Organization (PSO)

http://www.mhakeystonecenter.org/compare.htm

Page 9: 1 MHA Update and Strategic Outlook MRRN Meeting March 18, 2015 Brian Peters CEO-Designate

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Questions / Discussion

BRIAN PETERS | CEO-DesignateMichigan Health & Hospital Association517-886-8223 Phone | 517-323-1132 Fax [email protected] www.mha.org