Kelly CookJessica Landin

Jonathan ThornhillBrian Wiggs

Business Plan

Business Description

Objective:Establish the Northern Virginia Physician Alliance which will seek to:

1) Acquire physician practices in the rural areas of the Washington-Arlington-Alexandria (WAA) metropolitan area

2) Expand NVHS’s service area, referrals, and downstream revenue sources

Private non-profit operating subsidiary of Northern Virginia Health System (NVHS)

Mission

Industry Analysis Physicians

-Reduced Medicare reimbursement making private practice more difficult-Expense and complexity of complying with healthcare reform requirements -Ability to focus on "being a doctor" as opposed to running a practice-Steady income and job security-Better work/life balance

Healthcare Systems-Predicted physician shortage (particularly PCPs)-Fierce competition/expand market share/create referral network-Provides mechanism to Improve quality and reduce cost by having more control over physicians and incentive based pay

Market Competition

• Major players present with brand recognition (i.e. George Washington)

• Competition is focused in acquiring practices in more densely populated sections of the WAA metro area

Sen-tara

Medi-cal

Group13%

Inova Medi-

cal Group

5%

Fair-fax

Family Prac-tice0%

Med-Star

Physician Part-ners3%

Mid-Atlantic Permanente Medical Group

31%

GW Medical Faculty As-sociates

24%

Johns Hop-kins Commu-nity

Physicians

5%

Unaffiliated 18%

Estimated WAA Metro Area Market Distribution

Business Strategy

• Focus primarily on existing practices located in rural areas of WAA metro area

• Incorporate clinical and functional integration to maximize efficiency, quality and the patient experience

Phase I: Rural PCP Practices

Phase II: Suburban PCP

Practices

Phase III: Specialty Practices

Marketing/Target Audience

Establish the NVPA brand by educating/recruiting potential physician practices:

In the WAA metro area, particularly the rural areas• Practices known to refer to NVHS• Practices with unknown referral patterns • Practices known to refer to competition• Practices with ≥ 3 physicians

Operations

Centralized Operational Support

Risks– Decreased physician productivity – Lack of meaningful compensation system

HR Legal/ IT

Business Office Strategic Planning Marketing

Financial Facilities/Supplies Credentialing

Implementation Plan

2013Q1:Hire centralized administrative and marketing staff

2013Q1 and ongoing: initiate practice contact

2013Q2 and ongoing: marketing operations

2013Q2 & Q3: Hire additional marketing staff

2013Q3: Execute initial contracts

2013Q4: Begin KPI monitoring

Financials

Net Patient Revenue

Total Expenses

(Unadj.) Change in Net Assets

Investment and Transfers to NVPA

2013 2014 2015 2016 2017

$12 $10 $10 $10 $10$10

$2.7 $16.3 $32.6 $43.9 $52.9

$5.1 $19.9 $36.1 $57.9$48.2

($2.4) ($3.5) ($3.5) ($5.9)($4.3)

(Amounts in millions)

Downstream Net Revenue

Net Present Value

$2.3 $14.3 $28.6 $45.6$38.5

$0.4 8.5%Internal Rate of Return

Measuring Success

Internal Satisfaction-Employee Satisfaction-Employee Turnover-Physician

Satisfaction-Physician Turnover

Finance -Profitability

-Cost Management -Patient Visit Volume

-Missed Appointments

Quality-Door to Doctor

-Patient Satisfaction-Time to Third Appointment

Employee Safety

Regulatory-EMR Utilization

-Value Based Purchasing

-Clinical Outcomes

-HIPPA Adherence

Key Performance Indicators

Thank You!