Case for outsourcing sales presentation

1© 2007; MedHQ all rights reserved.

Outsourced Services

The Case for Outsourcing


Challenges for Healthcare Providers

Administrative Headaches - Inefficiencies

• Timely and Accurate Financial Information

• Efficient / Effective People Administration

• State and Federal Regulation Knowledge

• The Ability to Attract and Keep the Best People – Employee Turnover

• Keeping Up with Changing Technology

• Long Term Cost Containment

• Cash Leaks and Drains

• Executive Level Business Council


Typical Back Office Responsibilities & Functions

Human Resources

• Employment Law

• Health and Welfare

• Staff Attraction & Retention

• Payroll & Compensation

• Workers’ Comp

• Values Based Culture Development

Revenue Cycle Functions

• Accounting &Accounts Payable

• Cash Management General Ledger

• Budgeting-Capital and Operating

• Credentials Verification

• Business Consulting and Management Expertise

Administrative

• Management of Employee Information

• Claims Administration

• Recruiting & Staffing

• HRIS Web Portal

• State and Federal Regulations

• Information and Technology Support

• HR Legal Expertise


Are you a vendor manager?

HIPAA &

Patient Safety

Business

Consultant

Credentialing

Expertise

Technology

Support

Staff &

Recruiting Service 3rd Party

& COBRA Administration

Employer

Legal Council

Accountant

Tax Preparer

Payroll Service

Provider

Employee Benefit

Insurances

401K

Workers

Compensation

& Liability Insurances

Outside

Human Resource

Expertise

You &

Your

Facility

Provide the best quality

health care?

Community outreach?

Patient care?

Growth of business?

Culture development?

Nurture alliances and partnerships? Profitability?

Competitive advancements? Market changes?

Keeping good employees?


Why Outsourcing makes sense

Source: “The Black Book of Outsourcing” by Brown and Wilson

• Outsourcing brings greater efficiencies without

having to invest in added people and technology – saving

time and money-leading to better service levels

• Outsourcing enhances profitability; leading to increases in shareholder

value; be an employer of choice; gain a competitive advantage

• Outsourcing provides instant access to expertise; reduces

business mistakes and reduces risk

• Outsourcing frees up time to focus on core competencies

maximizing revenues

• Reduce Cost • Reduce Risk • Maximize Performance


Employment Law Regulation

From the early 1900’s to current - new laws and regulations create business

challenges


Average Award Amounts for Non-compliance

• Wrongful Termination $219,000• Race Discrimination $147,000• Gender Discrimination $106,000• Disability $100,300• Pregnancy $ 87,000

• Sexual Harassment $ 37,500

Employment Law Regulation

Protect yourself from potential lost profits


0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

<250

250-499

500-999

1000-2499

>2500

No. o

f Em

ploy

ees i

n Co

mpa

ny

HR Expenditures per employee

MedHQ can help contain the rising costs associated with being an employer.

Human Resources Expenditure per Employee


Employee Turnover Costs

Source Turnover cost, Documentation - Supporting material $8/hr. employee

American Management 30% of Annual Salary

Association $4,000.00 - The cost of hiring and training a new employee can vary from 25 percent

$4,800.00 to 200 percent of annual compensation. Costs include customer service disruption, emotional costs, loss of morale, burnout/absenteeism among remaining employees, loss of experience, continuity, and “ corporate memory.”

Hay Group study $8,000.00 The cost of replacing workers range from six months of an hourly workers

to 18 months salary of a professional employee.

Saratoga's Human Resource $16,000.00 Average turnover cost equals one year's salary and benefits. This can vary Financial Report widely depending on industry.

Workforce Magazine $10,000.00 45% of responding companies indicated that turnover costs are more than

$10,000 per employee

Compilation of turnover cost studiesSasha Corporation, Since 1984 HR Consulting & Development


• Build High Performance, Customer Service Teams, Improve employee retention and morale while eliminating non-productive administration in order to re-focus on bottom line activities

• Health Care Economies of Scale

Benefits Value and cost stability in order to create operating leverage

• Shared risk

Risk management control in order to reduce employer liabilities and vulnerabilities.

Outsourcing Value Add


Typical Business Office Functions

Human Resources

• Employment Law

• Health and Welfare

• Staff Attraction & Retention

• Payroll & Compensation

• Workers’ Comp

• Values Based Culture Development

Revenue Cycle Functions

• Accounting &Accounts Payable

• Cash Management General Ledger

• Budgeting-Capital and Operating

• Credentials Verification

• Business Consulting and Management Expertise

Administrative

• Management of Employee Information

• Claims Administration

• Recruiting & Staffing

• HRIS Web Portal

• State and Federal Regulations

• Information and Technology Support

• HR Legal Expertise


Time and Focus on Your Facility

You & Your Facility

Growth

Profitability

Company Culture

Patient Care

Increased Revenues

Build Alliances & Partnerships

Community Outreach

State-of-the-Art Healthcare Services

Facility of Choice


Time + Money + Focus = Total Bottom Line Costs

401K Provider

Recruiting Services

HR Legal Council

Added Admin Overhead______ ______

____________

______

______

Payroll Service

TPA Costs/Annual Renewals

Supervisor Training

______ Core Time Lost

Total Annual Payroll _______

Current MedHQ

Total Annual Payroll $ _______

____________

IT Support

Employee Turnover Cost______Compliance & Safety

______

$

$ ______ _ $ ________

MedHQ’s

Platform of

Services

People

Expertise

Technology $_______


• Specialized; Focused Solely on Healthcare Market

• Started serving Ambulatory Surgery Centers- October 2, 2002

• Skilled Healthcare Administrative Staff CPA’s, Human Resource Professionals, Payroll

Specialists, Healthcare Executive Management and Consultants, Credentialing Specialists, Technology Expertise

• The Provider of Choice for Nationwide Healthcare Business

Why MedHQ ?


“We have been working with MedHQ for five years. The medical benefits provided through MedHQ are best of class, have kept us competitive in the market and has helped our ASC partners attract and keep great employees. This could not have been accomplished on our own. There are so many back office functions to attend to in running an ASC. MedHQ has provided our ASC partners accounting solutions that are timely and accurate. We trust our MedHQ team and know that our bottom line has been impacted by utilizing the accounting resources provided by MedHQ”

Thomas Mallon, Chief Executive Officer, Regent Surgical Health

“On a monthly basis, our Accounting Specialist and I have constant communication about the budget, taxes, billing, revenues, expenses, and Blue Cross. There is no one single event that stands out; rather, accounting specialist is a steady, reliable resource to me for concerns and questions that we have in these areas. When I have been pressed for time in preparing for my board meetings, he will do his utmost to speed things along so that I can have the monthly financials as quickly as possible.”

Thomas Holecek, Administrator, Palos SurgiCenter Palos, IL

Why MedHQ?


With MedHQ it does not have to be a challenge anymore…

MedHQ specializes in providing Accounting Expertise, Payroll Management - Time & Attendance Solutions, Human Resources, Employee Benefit Management, IT Solutions, Credentialing and Consulting exclusively to Healthcare Business

MedHQ The Experts for Healthcare Back Office Operations


1. Assess Business Fit

2. HR Audit Process

Assess Needs

4. Approve Proposal Concept

3. Select and Execute Strategies

Is MedHQ the solution for you?


Robin LacineExecutive Director of Business Development

MedHQ4 Westbrook Corporate Center, #440

Westchester, IL 60154(708) 492-0519 office

(708) 492-0547 faxwww.medhq.net

Robin LacineExecutive Director of Business Development

MedHQ4 Westbrook Corporate Center, #440

Westchester, IL 60154(708) 492-0519 office

(708) 492-0547 faxwww.medhq.net

Education

Case for outsourcing sales presentation