4. 4
Presentation Objectives
Clear, Concise and Consistent Communication that…
Creates a common impression of the following:
It’s more about what they hear than what you say!
Opportunity Performance PriorityUrgency
5. 5
Presentation “Tools”
Financial
Statements
Provides
Accountability
Requires a
working knowledge
of Accounting/
Finance
Allocate 20% of
your Presentation
time to this Tool
Bullet
Statements
Provides
Interpretation
States the
managerial action
plans addressing
significant trends
Allocate 30% of
your Presentation
time to this tool
Graphs,
Charts
and Metrics
Provides Focused
Attention
Visually highlights
significant trends
Allocate 50% of
your Presentation
time to this Tool
6. Presentation “Tips”
Design Presentation for 10-20 minutes
Give Administrative team members
opportunity to comment.
Don’t Bluff or speculate…develop a list
of follow up items for next meeting.
Remember…most of your
audience are not accountants!
9. 9
EBITDA
The Board Trustee Understanding
Excess Earnings created from day to day
operations available for the following:
Build Cash
Reserves
Make Debt
Service
Payments
Fund
Building,
Equipment
and related
Infrastructure
needs
10. 10
Financial Stability Metrics
It’s all about the BASE, ‘bout the BASE…
Stressed Stable Strong
Cash
< 50
Days
50-150
days
> 150
Days
Average Age of Plant
> 12
years
8-12
years
< 8
years
Long Term Debt as a %
Total Assets > 50%
25%-
50%
< 25%
Net Revenues >75%
50%-
75%
< 50%
Debt Service Coverage
< 1.5
times
1.5-3
times
> 3
times
EBITDA <5% 5% - 15% >15%
11. 11
Financial Stability Metrics
Five Year Average
Stressed Stable Strong
Cash 88
Average Age of Plant
10.2
years
Long Term Debt as a %
Total Assets 20%
Net Revenues 48%
Debt Service Coverage
2.4
times
EBITDA 8.6%
12. 12
Financial Stability Metrics
Current Fiscal Year
Stressed Stable Strong
Cash 55
Average Age of Plant
12.1
years
Long Term Debt as a %
Total Assets 32%
Net Revenues 60%
Debt Service Coverage 1.25
EBITDA 2%
13. 13
EBITDA
Build up the BASE!
EBITDA
Date: 12/15/2014
For
Month 11/30/2014
Hospital: Our Hospital RVP: John DOE
Location:
Anywhere,
USA AVP: Ricky ROE
RFA: Heidie HOE
Target Annual EBITDA $2,000,000
Last Twelve Months EBITDA: $150,000
Last Twelve Months EBITDA as of FYE: $190,000
Most significant Initiatives to Improve EBITDA:
Description of Initiative
Annual Financial
Impact Current Month's Status update for Initiative
Amount
Achieved to
date
% of
Initiative
Achieved
to date
1 Geropsych $1,000,000 Target start date of July 1, 2015 $0 0%
2 100% Participation in Hospitalist Program $1,000,000 Target start date of March 31, 2015 $0 0%
Total of Initiatives $2,000,000 $0 0%
When is expected date for Facility to target EBITDA 12/31/15
What is frequency of oversight meetings/calls with this client Monthly
18. 18
Intended for internal guidance only, and not as
recommendations for specific situations. Readers should
consult a qualified attorney for specific legal guidance.
