Providing Network Optimization Intelligence

The Challenge St. Francis Health System, an integrated, medically-based health system with an emphasis on a complete continuum of care was “sitting” on a long acquired vacant piece of property and wanted to know if it is the right location to build their new clinic facility. This quickly expanded into a complete network review and reallocation of resources ……

Healthcare Network Optimization – Case Study

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St. Francis Health System, a market leading hospital and operator of the Warren Clinic network was sitting on a piece of property that had been acquired several years earlier. The hospital was now ready to move with the location but wanted to make sure it was still a viable site. The hospital asked TruVue to provide an opinion on the viability of the location and its impact on the chain’s current network of existing facilities. In order to answer that initial question, TruVue believed there were deeper issues to be addressed and provided a plan of action. Instead of adding a single new location, the hospital needed to look at several issues in the marketplace including:

o Patient visitation / charge analysis; o Detail review of current market demographics (1/2 mile grid analysis); o Market competition – Competitive strengths and shifting strategies; o TruPicture Analysis - Overall network location efficiency.

Patient Visitation / Charge Amount Analysis TruVue asked St. Francis to provide patient visitation data for the last 3 fiscal years. The data was a single record for each patient visit and included key items such as billing facility, billing physician, provided service, and charge amounts. The patient data was geocoded to address and each of the data points were mapped and analyzed at a one-mile grid level. BENEFITS – The patient data provided insight into:

1. Determining the typical drive-time trade areas for each facility; 2. Illustrated Patient density and shifting Patient and Charge trends; 3. “Service Provided” information allowed TruVue to calculate the GAP

between total services provided versus client services provided within each facility’s trade area – showed facility weaknesses/strengths.

4. “Charge Amounts” detailed shifts in patient charges from growth to decline areas which emphasized the changing market demographics and competitive impact.

Healthcare Network Optimization – Case Study

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Detail Review of Current Market Demographics Previous demographic analysis had been conducted at Zip Code level. TruVue cut the entire marketplace into ½ mile demographic grids for street level analysis. The demographic variables used in the analysis included population, age population (Children 0-13 – target Pediatric patients, Females Age 14-34 - target OBGYN patients, Age 50, 65 Plus – target Cardiology patients, etc), Incomes (greater $100K, average income, etc), and traffic count flow. BENEFITS – The detail demographic data provided insight into:

1. Concentrations of target patient population for comparison: a. To existing facility offerings – GAPS in service provided; b. For Areas of new opportunity where no existing facilities currently

located; c. For Population shifts and trends – solidify future network growth

plans.

Market Competition –Competitive Strengths & Shifting Strategies Based upon the inclusion of competitor locations, client locations and current demographics, TruVue was easily able to identify the competitive shifts and trends in the market outlining the negative impact the client could expect over the next few years if no action was taken. .

Healthcare Network Optimization – Case Study

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BENEFITS – The detail analysis of competition brought insight into:

1. Easily identified that Competition was “cutting off” client from traditional patient stronghold through a series of new hospital and facility expansion.

2. Identified areas of opportunity to “out-position” competitors to take advantage of new market growth and expansion.

TruPicture Analysis - Overall Network Location Efficiency TruVue has developed a unique process that provides Hot Spot mapping at ½ mile grids based upon a critical set of client specific demographic variables with client assigned weightings for generating different location based scenarios. Market-wide hot spot maps were generated for several services including Internal Medicine, Pediatrics, OBGYN, Cardiology and an All Patients scenario. BENEFITS – The TruPicture maps provided insight into:

1. Critical information for developing a full facility network with the most efficient service and provider offerings. Identified exact location detail for developing an efficient and effective network of facilities consisting of current locations, re-located facilities, closing/combining locations and new locations.

2. Utilizing aerial photography, assist in identifying available land for new site locations and potential facility re-positioning.

Overall Project Benefits Combining all the factors of patient data, current demographics, traffic flows, competition and the TruPicture analysis, TruVue was able to provide exact answers the client needed:

Healthcare Network Optimization – Case Study

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o For the green site in question, TruVue told the client to walk-away; o For every existing location, a detailed analysis of strengths and

weaknesses was provided along with site specific recommendation (as is, close/combine or re-locate)

o Identified specific new site location properties for expansion and prioritized by strength.

o Overall complete market network plan for existing and potential new locations.

The first answer alone saved the client millions by avoiding this one crucial mistake. Avoiding the cost of that one mistake paid for the

project at minimum 10 times over. Project Result – Warren Clinic Expansion The analysis of the market and St. Francis’ network optimization plan, TruVue had identified six target areas for expansion and had ranked them from top to bottom. On March 12, 2014, St. Francis announced that they were breaking ground on three new Warren Clinic facilities. These were the top three locations identified by TruVue for expansion.

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Warren Clinic developing sites in Bixby, Broken Arrow, southwest Tulsa

Facilities in Bixby, Broken Arrow and southwest Tulsa should be operating next year.

Posted: Wednesday, March 12, 2014 12:00 am | 4 ∑ ®ª¨´ΆІ╖Ά╕╘І∑¥ І3غ І, ® І╗╕І╗╕╖╙І

By ROBERT EVATT World Business Writer | 0 comments

Warren Clinic is developing three new clinics — one each in Bixby, Broken Arrow and the Tulsa Hills area.

The clinics, which will open at different times next year, will add 30 health-care providers to the division of Saint Francis Health System.

The development cost of the clinics was not disclosed.

Eli Smith, vice president of operations at Warren Clinic, said the new facilities won't be the end of growth, as the system plans to expand the number of physicians working at its 75 existing locations, increasing the total from 318 now to 400 next year.

"Frankly, there are too few providers in Oklahoma," Smith said. "We hope to address the access issues that patients now encounter."

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Each of the new facilities will feature primary care, which covers family medicine, internal medicine and pediatrics; urgent care; radiology; and on-site laboratory services, Smith said.

Currently, only the Warren Clinic locations in the Springer Building at 6160 S. Yale Ave. and 2950 S. Elm Place in Broken Arrow offer urgent care capabilities, and just a handful feature laboratories.

"From a patient perspective, having on-site laboratories will be beneficial," Smith said. "You won't have to go to another procedure to have doctor-ordered tests performed."

Construction of the Bixby clinic — Memorial South — has already begun, Smith said. The largest of the three, it will have 16 health-care providers.

The system is finalizing bids for construction of the Broken Arrow location, to be built near Kenosha Street and the Broken Arrow Expressway, Smith said. It will employ eight.

And Warren Professional Building Corp., the development arm of Warren Clinic, recently purchased 2.66 acres for $2.9 million for the Tulsa Hills location along Olympia Avenue just north of 81st Street, Smith said. When finished next year, it will employ six.

Previous owners of the undeveloped property included Tulsa Hills Hospitality and local hotel developer Robert Patel.

Smith said Warren Clinic picked these particular locations after a careful examination of the metro area, taking into account significant commercial and residential development.

"We want to improve access to health care, as well as improve our overall visibility in some of Tulsa's higher-growth areas," he said.

Robert Evatt 918-581-8447

robert.evatt@tulsaworld.com

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Page 2 of 6Warren Clinic developing sites in Bixby, Broken Arrow, southwest Tulsa - Tulsa World: Bixby News

5/22/2014