Page 120 - CombinedTest_Neat

Site Performance Summary:

Toledo region supply expense exceeded budget by $3M despite lower
patient activity. Admissions were down 4.4% and surgery volume was
under budget 5.2% driven primarily by outpatient surgeries under budget
by 7.2% (168). Outpatient surgery volume was underbudget at each
hospital; St Vincent accounted for 50% of the total variance. The primary
driver of the total variance is year-end inventory adjustments in medical
surgical supplies, $2.2M. Removing the value of consigned products from
the asset account at St Vincent accounted for $1.7M of the $2.2M
inventory adjustment. The variance in the inventory variance expense
account was driven by consigned surgical trays counted in 2016 impact
($993K) and floor stock moved to OR pyxis cabinets ($237). The increase
in TLIF spine procedures at St Anne's produced a spine implant inventory
variance of ($52K). Total joint procedures YOY increase of 46% at St
Anne’s, St Vincent, and Defiance resulted in a ($72K) orthopedic implant
variance. Implant other exceeded budget by $400K driven by St Vincent
spend, increase in penile implants ($60K), YOY increase in high dollar
products ($63K) and Specials insufficient budget ($84), PY spend $166K, CY
budget $41K. Instrument supplies spend continues to exceed budget
($79K) driven by the purchase of robotic instruments, YOY robotic
procedure volume increased 4%. Unbudgeted purchases for various
Toledo Leader's Summary
projects contributed to the combined ($153K) variance in minor
equipment and other non-medical supplies.

Key Challenges: 2-3 key contributors for each expense subaccount
YE Inventory adjustments: St Vincent – Impact $1.7M, removed
consignment from asset account, St Charles – Impact $500K, Tiffin -$54K

Med/Surg Reallocation of expense Impact - $87K

Supplies in support of increased ortho and spine volume - Impact $41K

Rx

YOY increase of 9 spinal TLIF procedures – Impact $148K

Implants YOY increase in orthopedic procedures of 12 – Impact $72K

Four high dollar AAA procedures- Impact $88K

YOY increases in Davinci related instrument and endo-mechanical expense
– impact $118K

Other Expenses Unbudgeted minor medical and non-medical equipment - $103K

Actions Taken/Planned:
Volume Data
Alt Sourcing
Capital Avoidance