FQHC LookAlike Operations Capital Fiscal Year 2020 2

FQHC Look-Alike Operations & Capital Fiscal Year 2020

2

Major operational focus areas § Quality and patient safety § Patient volume growth § Care Reimagined planning § Opening of West Valley Clinic (WVC) § Closure of El Mirage & Glendale § Marketing & Branding Name Change to Valleywise § New Access Points (NAP) Potential – Application submitted for approval 3

Providers 4

Visits 5

Visits 6

Revenue § FQHC Look-Alike AHCCCS reimbursement is flat § Rate = $295. 37 §CDM Rate adjustments – strategic; rate neutral, but add to Net. §Sliding Scale change §Commercial contracts up for renewal: 7

Payor Mix Fiscal Year 2020 Payer Mix is based on the April 2019 YTD payer mix plus last quarter estimated impact due to the AHCCCS Work Requirement to be implemented January 2020 with a 3 month grace period. 8

Expenses § Budgeted expenses ↑ 0. 6% compared to the FY 2019 projection § Labor costs (salaries, contract labor, and benefits) ↑ 3. 6% over the FY 2019 projection § A vacancy factor applied – approximately 32 FTEs § Includes 3% salary increase starting Dec 2019 § Merit § Medical Service Fees 1. 8% § Based on forecasted DMG providers with shift towards more mid-level providers 9

Expenses (cont. ) § Supplies - New process/Correction for FY 2020 § Decentralization of laboratory supplies and pharmaceutical expenses § This better matches accounting guidelines § Results in over $1 M net increase to FQHC Look-Alike expenses § Other expenses projected at current year run rates plus 2. 0% inflation unless specifically identified. Examples include: § No significant changes to cost allocations § Reviewed annually 10

Income Statement 11

Income Statement 12

Income Statement 13

Per Visit 14

Per Visit 15

Per Visit 16

Capital 17