Page 151 - CombinedTest_Neat

Site Performance Summary:
Mercy Health Youngstown's supply expense is under budget $2.52M
(8.4%) after adjustments booked per the recent supply and pharmacy
inventory counts. Excluding this adjustment expense is over budget by
$217K (1.5%) despite gross revenue coming in under budget by 2.0M (1%).
The primary driver of this variance was Medical Surgical supplies, which
came in $440K, 10% under budget. Drugs exceeded budget by $365K (7%)
on higher chemotherapy/infusion volume as well as thye new Outpatient
Pharmacy and 340B program ramp-up at Boardman. Overall surgical
volume was down 128 cases (7%), with inpatient procedures coming in
16% under budget. Implants exceeded budget by $351K (13%), with the
main driver being TAVR expense at St. Elizabeth. The decrease in surgical
volume resulted in Medical Surgical supplies coming in $440K (6.8%) under
budget. Implant Other exceeded budget by $164K, mainly driven by
CardioMEMS ($39K) and Occluder PFO expense ($20K) at St. Elizabeth.
Orthopedic joint implants exceeded budget by $90K (20%) on a mix of
increased revision and total shoulder volume (14 cases vs. 6 PY) vs. lower
than expected primary implants (91 cases vs. 75 PY).

Youngstown Leader's Summary
Key Challenges: 2-3 key contributors for each expense subaccount
Overall low OR volume (18% under budget) was main driver of the facility-
wide positive expense variance at SEYH (OR down $250K, 35%).

MedSurg expense decreased in-step with soft surgical volumes for the
Med/Surg period.

Oncology and infusion services continues to drive Pharma expense with
increases noted for all three acute care sites.
Rx

Orthopedic implants exceeded budget for the region by $90K (20%) on
fewer primary procedures vs. increase in revisions.
Strong Cath Lab volume at St. Elizabeth is driving revenue and improved
contribution to margin based on facility's use of Abbott DES.
Implants

Implant other is a considerable bucket that requires improved surveillance
and reporting in order to review and understand volumes.

Red Cross blood expese came in under budget by $99K. Blood is
transferred from St. Elizabeth to other MHY acute care facilities by Red
Cross - the vendor was behind in "truing-up" expense, credits have been
applied to SEYH, varying impact at SEBH and SJWH. This process is to be
reviewed in January.
Other Expenses
Freight came in $81K under budget due to $52K in Medline LUM fees
reclassed from freight to purchase services at Boardman, as well as a $72K
Omnicell freight charge credit at SEBH and SJWH.

Actions Taken/Planned:
Volume Data
Alt Sourcing
Capital Avoidance