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MONDAYS IN MARCH
Business and Finance
William R. Elger, CPA
Executive Vice President, Chief Business and Finance Officer March 29, 2010
Office of the Executive Vice President, Chief Business and Finance Officer
Office of the Executive Vice President, Chief Business and FinanceOfficer
Watch the video clip, “Herding Cats”
http://www.youtube.com/watch?v=Pk7yqlTMvp8
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Today’s Agenda
1. WE ARE “THE BUSINESS” OF UTMB
2. FINANCES AND BUSINESS PROCESSES
3. FACILITIES
4. COMMUNICATIONS AND ENGAGEMENT
5. BREAKING NEWS
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WE ARE
“THE BUSINESS”
OF UTMB
Re-designing and implementing
decision-making processes
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We Are “The Business” of UTMB
Financial Planning and Performance Management
• Business Intelligence
• Performance Management Strategy
• Forecasts of Operational Performance
• Capital Planning Process
Matthew J. Furlong
Associate Vice President, Financial Planning and Performance Management
Business Development and Marketing
• Branding Support
• Marketing Communications
• UTMB Healthcare.org
• Market Research
Christopher Packard
Associate Vice President of Marketing
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We Are “The Business” of UTMB
Information Services
• Desktop Support
• IS Security
• Service desk
• Voice Services
• EPIC
• Correctional, Administrative and Clinical IS
Services
• Patient Registration, Scheduling and Billing
• Enterprise Systems
Ralph Farr
Vice President of Information
Services
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We Are “The Business” of UTMB
Business Operations and Facilities
• Facilities
− Planning, Design and Construction
− Utilities and Sustainability
− Maintenance
− Environmental Services
• Auxiliary Services
− Bookstore
− Student Housing
− Alumni Field House
− Parking
Michael R. Shriner, AIA, MBA
Vice President for Facilities and
− Retail Food and Vending
Campus Services
• Business Operations
− Mail Services/Fleet
− Logistics and Purchasing
− Police
− Environmental Health and Safety
− Emergency Preparedness
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We Are “The Business” of UTMB
Human Resources
• Employee Relations
• Recruitment
• Compensation and Benefits
• Organizational Effectiveness and Training
• Diversity and International Affairs
• Employee Health and Wellness
Kathy J. Shingleton, MBA, Ed.D., SPHR
VP of Human Resources and Employee Services
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We Are “The Business” of UTMB
All Financial Functions • Asset Management
• General Accounting
• Outpatient Registration
• Health Care and CMC Financial
Management
• Accounts Payable
• Payroll
Celia Bailey-Ochoa, CPA, MBA David M. Connaughton, CPA, CHFP
Associate Vice President, Finance Vice President, Finance – Clinical Enterprises • Financial Reporting
• Budget and Planning
• Treasury
• Cost Reimbursement
• Cashier’s Office
• Patient Admitting and Finance
• Entity Administrative Services
R. Craig Ott, CPA Cameron W. Slocum Team
Controller Vice President, Finance - Academic
Enterprise and Faculty Group Practice • Controller’s Office
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We Are “The Business” of UTMB
Communications and Administration
Sheila S. Lidstone
Chief Communications Officer
Yvonne Hudson
Administrative Coordinator
Office of the Executive Vice President, Chief Business and Finance Officer
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FINANCES
Improving financial credibility and
transparency with financial information
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“To whom much is given, much is expected”
Office of the Executive Vice President, Chief Business and Finance Officer
Economic Factors: State and National
• Texas feeling national recession
– Natural gas, tax collection down 48% (2009)
– Oil production tax collections down 39%
– Sales tax revenue declined 8.8%
– State requests a plan for a 5% cut in General Revenue (GR)
• GR is ~24% of UTMB budget
• $31M from UTMB directly
• Potential for another $36M from TDCJ, HHSC et. al.
• Texas showing some signs of recovery
• National Health Care Bill
– Major provisions take effect in 2014
– Requires significant increase of primary care health providers
– Working on understanding impact
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Organizational Chart of National Health Plan
ORGANIZATION CHART
OF HEALTH PLAN
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Economic Factors: Closer to Home
• Correctional Managed Care
– Prison population is important to education and academic missions
at UTMB
– Prison population aging; health care costs for chronic diseases are
climbing (i.e., Hepatitis C, Diabetes, Cancer and HIV)
– Without legislative intervention, UTMB expects $82M in losses for
2010-2011
• Building back is costly
– Although FEMA reimbursement is 90%, reimbursement is a
lengthy process that causes cash flow crunch
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UTMB’s Current Financial Status
• Stabilizing, but major challenges still ahead
• Sustained positive margin for first half of fiscal year
– Major accomplishment!
• Proposed plan for state cuts of $31M over biennium
– Accurate forecasting and planning
– Growing revenue
– Commendable effort by all to manage expenses
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Where do our funds come from?
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Office of of the Executive Vice President, Chief Business and Finance Officer
Sources of Funding YTD February FY10
Operating Sources: $742.0M
Non-Operating Sources: 21.1M
Total Sources: $763.1M
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How do we use these funds?
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Office of of the Executive Vice President, Chief Business and Finance Officer
Uses of Funding YTD February FY10
Total Uses: $750.9M
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Adjusted Margin
Six Months Ended February 28, 2010
Total Sources $763.1M
Total Uses 750.9M
Net Income $ 12.2M
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Staying Financially Healthy
• Keep doing what we’re doing
– Hold the line on expenses
– Grow Revenue
• Continue improving internal processes
• Manage staffing levels
• Be adaptable
• Remember: “Cash is King”
– Make payroll; avg. daily payroll for UTMB = ~$2.7M per day
– Pay bills = ~$1.4M per day
– Stay in the black
Office of the Executive Vice President, Chief Business and Finance Officer
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Cash Flow Management
The “Cash Flow Forecast” chart was an adjustable, interactive tool designed to show
various outcomes based on various possible scenarios of the four categories shown at
the base of the chart.
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BUSINESS
PROCESS
Office of the Executive Vice President, Chief Business and Finance Officer
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Process Improvement: Business Intelligence
UTMB Business Intelligence and Performance Management
Conceptual System Architecture and Data Flow
Office of the Executive Vice President, Chief Business and Finance Officer
What is the Key to Financial Success at UTMB?
Teamwork!
Office of the Executive Vice President, Chief Business and Finance Officer
FACILITIES
Developing and implementing a
facilities master plan for building back
and building forward
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The UTMB Model: Fix – Run – Grow
• FIX - Rebuild facilities damaged in Hurricane Ike
− Meanwhile, taxing limited facilities that are up--including elevators, air
handlers, chillers
• RUN – Conduct daily business
− While stretching people resources; significantly fewer people doing the
work of a larger workforce
− Pushing the envelope on financial resources
• GROW – Expand facilities, locations and business lines
− Create new revenue sources and build for the future
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Watch the video clip
“Building Airplanes in the Sky”
http://www.youtube.com/watch?v=eaal1v-vLYQ
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Office of the Executive Vice President, Chief Business and Finance Officer
Galveston’s Situation Is Unique
Houston Medical Center
• Sustained $90M in damages resulting
from Tropical Storm Allison because it
was situated in a “bowl”
• Following Allison, a levee was installed
at UT Health Science Center Houston;
it functioned effectively in defending
UTHSC Houston after Hurricane Ike
against Hurricane Ike
UTMB
• Sustained ~$1B in Ike damages across
1M square feet and 100 buildings
• Mitigation design principle: “Water
runs through it”
Cleaning up flood-damaged John Sealy Hospital
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Building Back: UHC
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Building Back: UHC
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Building Back: UHC
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Building Back: UHC
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Building Back: Cafeteria
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Building Back: Cafeteria
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Guiding Principles for New and Existing Mitigation
Building back concept: “Water runs through it”
• Critical operations space:
− ≥ 25 feet above sea level in new buildings
− ≥ 20 feet in existing buildings
• Non-critical space (below 20 Feet)
(classrooms, conference rooms, and noncritical functions)
− Protect against water infiltration where feasible
− Preserve life safety and mission-critical functions
− Designate alternate locations/arrangements
• Wind design speed 132 MPH for all buildings
Office of the Executive Vice President, Chief Business and Finance Officer
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Building Back
• Four projects totaling ~$667M up to $1B
Academic & Research $162M
Health Care Buildings $272M • 1 million square feet
• 100 buildings
Infrastructure $146M
• 87 acres
Research Buildings $87M
• Scope for each project includes repair, renovation and
remediation
• ~100 workers currently on campus doing prep/design; up to
800 this summer; ramping up to 1,000 in 2011
• Funding from FEMA, private insurance and state matching
funds approved by 81st Texas Legislature
− Example: Commercial truck @ $100,000
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Hurricane Ike Recovery Timeline
Acad. & Bus. Design
Acad. & Bus.…
Health Care Design
Health Care Construction
Infrastructure Design
Infrastructure…
Research Design
Research Construction
Q3, 2009
2009
2009
2010
2010
2010
2010
2011
2011
2011
2011
2012
2012
2012
2012
2013
2013
2013
2010
2012
2013
2011
Planning & Design
Construction
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www.utmb.edu/construction
John Sealy Annex
Building No. 90 Map Location: D7
Ike Repairs
• Ground Floor public area repairs
schedule – 11/2009-4/2010
• Permanent repairs/corridors schedule –
1/2010-8/2011
• Elevators/permanent repairs schedule –
12/2009-10/2011
John Sealy Hospital
Modernization – Phase I
• Phase I schedule - -11/2009-6/2011
Office of the Executive Vice President, Chief Business and Finance Officer
Building Forward: $500M in New Investment
• Finalize facilities to be repaired
or mitigated in May 2010
• Wrecking ball this Fall 2010:
– Jennie Sealy
– Old Shriners
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Clinical Services Wing
• Total cost $120M
• 300,000 square feet
• Work begins in Jan. 2011
• Components may include:
– Blood bank
– Pharmacy
– Sterile Processing
– Radiology Services
– Clinical Laboratory
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UTMB Specialty Care Center at Victory Lakes
• $61M facility
• Two stories; 110,000 square feet
• Scheduled to open May 2010
• Services include:
− Imaging Center
− Orthopedics and Rehabilitation
− Pain Services
− Center for Weight Management
− Breast Health Center
− Well Woman Services
− Surgical Specialties Clinic
− Pelvic Health and Continence Clinic
− Ambulatory Surgery Center
Office of the Executive Vice President, Chief Business and Finance Officer
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Victory Lakes: Current Construction
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Victory Lakes: Master Plan
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Proposed Surgical Care Tower
Tower components:
• $250M base; $438M full build-out
• State-of-the-art procedure rooms
• ICUs
• Connections to Trauma Center
• Imaging
Artist’s conceptual rendering; Design phase approved by Board of Regents
PROJECT TIMELINE
Planning & Design
Construction
2008 2009 2010 2011 2012 2013 2014
46 Office of the Executive Vice President, Chief Business and Finance Officer
Proposed Translational Research Building
Building components:
• $90M facility
• Ideal setting for educational/clinical
experience
• Critical lab space for Translational research
• 26,000 sq. ft. per floor
• Eventual connection to clinics for Artist’s conceptual rendering
expanded clinical research capabilities
• Institute for Translational Science and
additional infectious disease labs
PROJECT TIMELINE
Planning & Design
Construction
2008 2009 2010 2011 2012 2013 2014
47 Office of the Executive Vice President, Chief Business and Finance Officer
Proposed Interprofessional Education Building
Building components may include:
• $80M facility
• Gross Anatomy Lab
• Patient Simulation Center
• Online Testing Facility
• 300-Seat Auditorium
• Distance Education Studios
• Additional classroom space
• Flexible & Configurable
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Overall View
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COMMUNICATIONS
AND ENGAGEMENT
Promoting employee and
community involvement
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Employee and Community Outreach
• Internal Customer Satisfaction Survey
• Web Portal
• Small Group Meetings
• New Communication Tools
• Annual Report
• Quarterly Update
• Data Reference Card
• Refreshing the UTMB Brand Image
Office of the Executive Vice President, Chief Business and Finance Officer
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Internal Customer Satisfaction Survey
How well are we delivering services?
How can we improve processes and services?
• Launched surveys to measure internal customer satisfaction
– Surveyed all areas within Business and Finance
– >3,000 cumulative responses
• Results:
– Identified strengths: professionalism and functional expertise
– Identified areas for improvement: Accessibility and Responsiveness
• Developed action plans to address issues
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New Business and Finance Web Portal
• Provides easier access to business and finance
staff and services
• Designed as “one-stop-shop” for business and
finance information and guidance
• Currently in sandbox
• Let’s demo now
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Small Group Meetings
What ideas do employees have?
• Hosted more than 130 Business and Finance employees
since October
• Several ideas from employees have been implemented
– Changes to employee orientation coming
– Reviving “One Less Cup” program in cafeteria for Earth Day 2010
– Improved process for records retention program
– Improved communications about parking options
– Expanded hours for retirees to use field house
“UTMB is family. We come for
opportunity; we stay for opportunity.”
54 Office of the Executive Vice President, Chief Business and Finance Officer
New Communications Tools
• Annual Report
– Comprehensive state-of-the-university
booklet; now in production
– Planned release in April
• Data Reference Card
– Snapshot of UTMB
– Widely distributed to legislature,
System, community and on-campus
• Business and Finance Quarterly
Update
– Chronicles financial, construction and
programmatic progress
– UTMB and community distribution
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Refreshing the UTMB Brand Image
• Will incorporate campus and community input
• Working to create a bold, fresh new look
– Capitalizes on “UTMB” name recognition
– Goal is to help position UTMB among nation’s top academic
health care institutions
• Next steps:
– Executive Leadership will review
– Proposed to UT Board of Regents later this year
– If all goes as planned, we will launch UTMB’s new brand and
visual identity system in the fall
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Employee Advisory Council
• Formed in 2007; first elections in 2008
• Fosters two-way communication between the Office of the
President and UTMB employees
• Committed to assessing, prioritizing and communicating employees’
needs – serves as “sounding board” on broad issues
Council Members: Michele Lockwood
Diana Davison Melanie Loving
Jason Chavers Craig Peters
Veronica Pleasant Michele Stout
Chuck Machner
Advisors:
Amineh Baradar
Marianne Gooch
Tammy Cupit
Doug Stark
Gerald Cleveland, Chair Vivian Granger
57 Office of the Executive Vice President, Chief Business and Finance Officer
BREAKING NEWS!
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Healthier Food for Employees
• Adding healthier choices
• New food outlet locations across
campus:
– Food outlet to be located in former
visitor center in fall 2010
– Reopening of coffee shop in John Sealy
in August 2010
– Reopening and expansion of library
coffee shop in late 2010
• Engaging local vendors
– “Taste of Galveston”
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Special Use Facilities
Elimination of room use fees for
UTMB related business, effective
immediately
• Includes Caduceus Room, Ballinger
Mills Room, all of Levin Hall and
Marie Hall
• Fee structure still in place for Open
Gates and Rosenberg House
• Special Use Facilities will continue to
schedule
• New procedures will be outlined on
the Special Use website http://www.utmb.edu/suf
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A Final Thought…
“If you always do
what you’ve always done,
you’ll always get
what you’ve always got.”
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Thank you!
Office of the Executive Vice President, Chief Business and Finance Officer
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