this is a presentation done for a group project.

1. Pat Webb Consulting Christy Chukwu & Luis Martinez

2. Sunrise Health SystemHCA Western Group Business Plan Freestanding Emergency Department October 2008

3. AGENDA overview strategic positioning operational design pro forma recommendation

4. 1 case overview Sunrise Health recently lost a substantial insurance plan contract that translated into an approximate 30% lossin revenue and a 2% lossin total market share. Sunrise Health executives would like to explore additional emergency services to increase strategic position in a Las Vegas market.

5. 2 strategic positioning Potential Service Areas SWOT Analysis Results Projected Utilization Competitor Analysis Mission & Vision Links Type of Facility

6. DESERTS MOUNTAINS LAKE MEAD HILLS LAS VEGAS

7. Mountain View Hospital Sunrise Hospital Southern Hills Hospital 11 Competitors 1 2 3

8. Mountain View Hospital Sunrise Hospital Southern Hills Hospital 11 Competitors 1 2 3

9. Mountain View Hospital Sunrise Hospital Southern Hills Hospital 11 Competitors 1 2 3

10. s w SUNRISE HEALTH o t

11. s w Mountain View Hospital is profitable Corporate branding image they carry Location of facilities Substantial loss of managed care contracts SUNRISE HEALTH Population growth in both North and South Las Vegas market Higher income group in North Las Vegas Valley Health controls 40% of Inpatient market share Increasing uninsured population State of the U.S. economy for capital ventures o t

12. s w Mountain View Hospital is profitable Corporate branding image they carry Location of facilities Substantial loss of managed care contracts SUNRISE HEALTH Population growth in both North and South Las Vegas market Higher income group in North Las Vegas Valley Health controls 40% of Inpatient market share Increasing uninsured population State of the U.S. economy for capital ventures o t

13. market share analysis

14. POPULATION DISTRIBUTION BY AGE GROUP CURRENT HOUSEHOLDS BY INCOME GROUP POPULATION AGE 25+ BY EDUCATION LEVEL

15. POPULATION DISTRIBUTION BY AGE GROUP CURRENT HOUSEHOLDS BY INCOME GROUP POPULATION AGE 25+ BY EDUCATION LEVEL

16. POPULATION DISTRIBUTION BY AGE GROUP CURRENT HOUSEHOLDS BY INCOME GROUP POPULATION AGE 25+ BY EDUCATION LEVEL

17. projected ED visits

18. 131 130 149 129

19. Competitor Analysis Competitor Profile Competitive Advantage competitor profile Centennial Hospital Future Site 1 Summerlin Hospital

20. mission and vision links Community Position Strategy Patients first Improving local operations through efficient use of resources Investing in our community Focusing on leading hospitals in core communities 1 2 3 4

21. location visibility expansion ED 3 acres

22. location visibility expansion 30 45 ED 3 acres

23. location visibility expansion REHAB CLINIC MEDICAL OFFICES FITNESS CENTER

24. type of facility 12 bed surge ED 13,679 square feet 1 story building on 3 acres 41 FTEs LEED (cost effectiveness)

25. scope of service

26. scope of service

27. 3 operational design Organizational Structure Recruitment Strategies Regulatory Licensing and Compliance

28. Physician Contracts organizational structure

29. Physician Contracts organizational structure

30. Physician Contracts organizational structure

31. Physician Contracts organizational structure

32. Physician Contracts organizational structure

33. recruitment strategies Recruit from within system Tech-Savvy Recruitment Contract with a local ED physician staffing company

34. regulatory licensing & compliance

35. 4 pro forma Construction Costs Revenue Expense Net Income

36. construction costs

37. construction costs

38. revenue assumptions Years 2011-2019 projected visits were calculated using a growth rate equal to the average population growth rate of Las Vegas between 2002 – 2007. This rate was 5%. A conservative market share of 15% of projected Emergency Room visits was used. Average billed charges were calculated using data reported by Florida hospitals. Average billed charges were divided by average number of visits to get average billed charges. This number was $1863. Percent of billed charges paid was calculated using hospital data from UNLV research. Data on Clark County hospitals operating revenue was averaged and divided by averaged billed charges for those facilities. This number came to be 25%.

39. revenue assumptions Years 2011-2019 projected visits were calculated using a growth rate equal to the average population growth rate of Las Vegas between 2002 – 2007. This rate was 5%. A conservative market share of 15% of projected Emergency Room visits was used. Average billed charges were calculated using data reported by Florida hospitals. Average billed charges were divided by average number of visits to get average billed charges. This number was $1863. Percent of billed charges paid was calculated using hospital data from UNLV research. Data on Clark County hospitals operating revenue was averaged and divided by averaged billed charges for those facilities. This number came to be 25%.

40. revenue

41. expense assumptions Salary increased at a rate of 3% annually with 30% benefits package. Physician contract costs increased at a rate of 2% annually. Depreciation expense for the building was determined by depreciating it linearly over 30 years. Depreciation expense for equipment was determined using the AHA depreciation table and anything with a cost over $5,000 dollars was depreciated. Utilities were calculated per square foot using data specific to Nevada from the Whitestone Building Operations Cost Reference Guide for 2007-2008. Real estate taxes were calculated by using the millage rate for our area and the method provided by the Clark County Tax Assessors Office.

42. expenses

45. 5 recommendation

46. recommendation We believe this capital venture project is strategically feasible and financially viable

47. Where your emergency care is our highest priority.