University of Cincinnati Physicians Inc FY 2021 Budget

University of Cincinnati Physicians, Inc. FY 2021 Budget Presentation April 23, 2020 1

UCP Organizational Chart 2021 Organizational Chart UCP Board UC Health Compliance M. Glassman Legal Dinsmore & Shohl B. Lenchitz, MD VP of Primary Care UC MD R. Hawthorne Coordinator Jessica Middleton Coordinator UCP UC COM & UCP Payor Contracting Myles Pensak, MD CEO Primary Care Network EDBAs (Departmental Administrators) Andrew Filak, MD Chair & President Revenue Cycle Lori Mackey COO Process & Performance Improvement Planning, Reporting, & Special Projects Accounting, Budget & Decision Support A. Dorrington Director N. Holsing Vice President Operations D. Brummett Chief Financial Officer K. Kohorst Project Manager A. Hall Data Analyst K. Kew Data Analyst B. West Data Analyst K. Wigle Decision Support C. Johnson Data Analyst Open Data Analyst Jenny Ekardt Financial Director Payroll L. Flaherty Payroll Manager A. Mock Payroll Rick Toerner Senior Accountant A. Russell Payroll Bus Administrators (Split with Co. M) Open Payroll B. Brock Administrative Assistant Open Analyst Human Resources, (Retirement Benefits & Contract Management Heather Cox Executive Director Sheila Mc. Cormick Director - Faculty Christy Guilliam Director- Staff HR Consultants (Split with Co. M)

Business Divisions of UCP 1. Assessment – Annual assessment to provide the management and oversight of the Faculty Practice Plan for the Co. M. The services consist of oversight and management of day-to-day operations, finances, human resources, legal, planning, and practice management and are funded by the UCP employed clinician’s clinical revenue. 2. Employee Lease Agreement - Employee Lease Agreement between UCP and UCPC for all billable providers, select department administrators and Clinical Research Professionals. 3. Co. M Dean’s Unit – UC Health contributes funding to the Co. M to support it’s tripartite mission and those funds are managed via UCP, along with clinically based Co. M employees and related expenses.

Sources of Revenue (thousands) Leased Provider Salaries to UCPC

UCP Administration (Assessment) FY 2011 q Administration q Accounting & Finance q Ambulatory q Clinical Trials q Compliance q Human Resources * Direct Charge q Legal q Marketing q Physician Liaisons q Payroll * Direct Charge q Process Improvement q Revenue Cycle * Direct Charge q Strategic Planning/Development FY 2021 q Administration q Accounting & Finance q Human Resources q Legal q Payroll q Compensation Plans q Clinical Practice & Standards

Assessment Calculation Prior to FY 2017 • • Formula – based on fixed percentage of eligible UCPC revenue ( clinical revenue, less drugs, + other income) Accounting and Human Resources charged separately - $1. 2 M Assessment rate without Accounting, Payroll & Human Resources -2. 36% Assessment rate adjusted to include Accounting, Payroll & HR – 3. 3% FY 2017 and Forward • • Fixed at 2017 rate + UC Health Annual Merit Pool (typically 2. 5%) Reduced for services moved to UC Health (i. e. : marketing, compliance, ambulatory operations) Included Accounting and Human Resource into Assessment rate at 1. 8% Proposed Structure Long Term • % of Employee Lease

Assessment Revenue by Year Assessment $ (in thousands) Key Events: • FY 2017 – Marketing, Ambulatory, Compliance, and Call Center transitioned to UCPC. Accounting, HR & Payroll included in Assessment. • FY 2018 – Tied to UC Health Merit Pool • FY 2019 – CONCUR expense reimbursement process moved from UCPC to UCP • FY 2020 – Tied to UC Health Merit Pool • FY 2021 – Eliminated Clinical Operations Data Analyst for P 4 P for PCN $ 7, 000 $ 6, 000 $ 5, 000 $ 4, 000 $ 3, 000 $ 2, 000 $ 1, 000 $ - FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

FY 21 Assessment Total Budget

Assessment Funded Expenses by Program FY 20 FY 21 Assessment %Inc/ Program Administration Budget $ 1, 797, 161 Budget $ 1, 575, 011 Variance $(222, 150) (Dec) Crosswalk Explanation -12. 36% CEO Reduction -36 k; Mackey/Holsing -38 k; Admin Asst -22 k; PBO Analyst -35 k; Other -93 k -5. 45% Qgenda/Com Rev +151 k; Weeden/Meyer Reduction -120 k; Qgenda 61 k; Other -3 k Clin Ops $ 600, 820 $ 568, 075 $ (32, 745) Legal $ 549, 531 $ 691, 267 $ 141, 736 Acc & Fin $ 964, 042 $ 1, 023, 455 $ 59, 413 6. 16% CONCUR & SAP +24 k; Admin Asst +13 k; Other +22 k HR $ 528, 289 $ 560, 824 $ 32, 535 6. 16% ACA Software +23 k; Other +10 k Payroll $ 351, 977 $ 431, 055 $ 79, 078 Total Assessment $ 4, 791, 820 $ 4, 849, 687 $ 57, 867 25. 79% Anticipate Additional Legal Fees in FY 2021 22. 47% Comp Analyst +70 k; Other +9 k 1. 21%

Assessment by Practice (based on FY 20 UCPC Revenue Projections)

Assessment-Funded FTEs by Program

Provider Update 1, 099 1, 173 1, 209

Provider Recruitment Update

UCP Physician Turnover Non-Acad Avg (2013) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 12% 11% 10% 9% 8% 7% 6% 5% 4% We are here Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Primary Care vs. Specialty Providers 160 Primary Care Providers FTEs = 12% of Total 167 Primary Care Providers FTEs = 13% of Total

Compensation & Productivity Alignment 60% 55% 50% 52% 54% 50% 50% 45% 40% 44% 42% 41% 38% 37% 42% 39% 35% 51% 39% 38% 30% 26% 25% 20% 15% 10% 5% 0% 48% 47% 52% 49% 52% 54% 55% FY 15 FY 16 FY 17 FY 18 FY 19 Proj 20 Bud 21 FPSC w. RVU % MGMA Salary % AAMC Salary % AMGA Salary %

AAMC Compensation & Clinical Productivity 2020 vs 2021 Budget

AAMC Compensation & Clinical Productivity 2020 vs 2021 Budget – Internal Medicine Divisions

AAMC Compensation & Productivity 2021 Budget Surgery Divisions

Fiscal Year 2021 Initiatives q Effectively manage recruitment of approved positions q Continue to work on retention initiatives and improve vacancy rates q Implement provider On-Boarding on-line system q Implement Paid Parental Leave and self funded sick time donation plan. q Transition UCP employee health & screening to new combined UC- UC Health Employee Health program. q Implement on line retirement selection - Fidelity Master Administrator q Continue to standardize compensation plans to ensure compliance, while aligning compensation, productivity, and academic stimulus q Develop variable payment system & enhance payroll coding to drive standardize q Improve provider based clinical practices to include provider domain for patient satisfaction & managing designated quality initiatives q Audit and standardize faculty & Clinician website profiles through e. Professional/Research directory