SMPS Prognosis for Growth: Delaware Valley Healthcare Systems & - PowerPoint PPT Presentation

SMPS Prognosis for Growth: Delaware Valley Healthcare Systems & Their Facilities y y J h S h John Schwarz Vice President, Construction & Design Cooper University Health Care February 13, 2013 1

Facilities Acute care campus in Camden • Roberts Pavilion (2008): 10 ‐ story, 312,000 SF b l ( ) • Kelemen Pavilion (1979): 10 ‐ story, 406,000 SF • Dorrance Building (1940s/60s): 7 ‐ story, 141,000 SF • 20 total operating rooms, including hybrid OR, intra ‐ op CT, 2 cardiac, 1 trauma • Doubled size of ED in 2009; source of 40% hospital admissions admissions • Critical care units: ICU, CCU, TICU, NICU, PICU • Licensed for 620 beds 2

Outpatient Facilities • 3 Cooper Plaza – Camden • Cooper Neurologic Center (including Gamma Knife) l ( l d f ) • Ambulatory Surgery Center – Voorhees • Cooper Bone & Joint Institute – Voorhees • Cooper Cancer Institute hubs – Camden & Voorhees • Digestive Health Institute – Mt. Laurel • Multi ‐ specialty hubs – Voorhees, Willingboro, S Sewell ll • Over 80 primary care and specialty offices across region 3

Era of Reform • Mediocre patient outcomes compared to industrial economy peers d d d l • Demographics impacting demand for health care services – more seniors (Baby Boomers)…living longer, obesity epidemic, 34 million moving out of ranks of uninsured uninsured • Government health care programs on unsustainable track • Employer ‐ based insurance programs under pressure Source: Bureau of Labor Statistics 4

New Jersey Hospital Sector Strained • Average operating margin of NJ hospitals is 2.3% f h l • National average is 5.5% • At the end of 2011, 35% of NJ hospitals were operating in the red • Nine acute care hospitals have closed in the past five years & eight have filed for bankruptcy • New Jersey hospitals face ~$5B of cuts from Medicare program over 10 years We are in a highly competitive environment…one where overall volumes are likely to increase…but where overall reimbursement levels will decrease. What strategies will enable us to survive and thrive? 5

Health Care: An Industry of Contradictions • We want the best health care, but we don’t want to pay for it. h b h l h b d ’ f • We want quality, but reimbursement structure pays for quantity (currently). • Reforms pushing providers to consolidate, but anti ‐ trust activity is high. • Health systems making significant investments in amenities as part of push for patient satisfaction, but how much comes at expense of investments in care delivery? What trigger do we pull? When do we pull it? When do we pull it? 6

Paths Forward • Cost structure – “stress tests” at government reimbursement levels • Consolidation • Innovation – Primary care / preventive medicine / accountable care Requires collaboration among collaboration among – Improvements in quality of care I i li f providers, payors, – Reductions in end ‐ of ‐ life costs policy ‐ makers, the public – New methods of care delivery New methods of care delivery We can do this now; little holding us back 7

Emerging Methods of Care Delivery Driving down the cost of care… Driving down the cost of care… • Retail medicine – Urgent care – Retail clinics • Group visits • • Medical homes Medical homes • “Split flow” in EDs • Palliative care • • Telehealth Telehealth 8

Health Sciences Campus Cooper Cancer Institute Martin Luther King Boulevard 3 Cooper Plaza Medical Offices Cooper Medical School of Cooper Parking Rowan Garage University dway Broad 9

Rebuilding Camden • The “Eds and Meds” have been leading the effort to build a stronger Camden • Our partnership with Rowan University will anchor development south of h h ll h d l h f downtown Camden – Cooper Medical School of Rowan University – Future development – student housing, academic/research facilities • Other partners: – Camden County Improvement Authority – Coopers Ferry Partnership – St. Joseph’s Carpenters Society – M&M Development – Camden County College – Rutgers University – Campbell’s Soup – City county and state agencies City, county and state agencies 10

11 Rebuilding Camden

Thank You Thanks to all of our partners who have supported our growth in Camden and South h k ll f h h d h d d h Jersey over the past decade 12