Key Messages: UPG Board of Directors Meetings

March 15, 2018

A request was made that the UPG Board of Directors receive an assessment of UPG cybersecurity efforts and liability protection in the event of a data breach.

UPG President Bobby Chhabra, M.D. made opening leadership remarks, noting the increased unity and collaboration of department chairs that he had observed during his first six (6) months in the role of UPG President.

UPG CEO Brad Haws, UVA Chief HR Officer Kelley Stuck and UPG General Counsel Mary Frances Southerland presented an update on Ufirst. The benefits of an integrated delivery model include better value and experience for clinical faculty, as well as additional near-term benefits such as the ability to influence Workday technology, visibility into employee relations cases via ERIS, access to larger data sets and dedicated time and professional development curriculum for Business Partners. A collaborative effort is underway to develop metrics for Service Level Expectations which measure meaningful data. Ms. Kelley expressed gratitude for the UPG HR team’s diligent efforts to bring about understanding of unique aspects of the organization.

Ms. Southerland reviewed the ongoing efforts underway in partnership with the University General Counsel’s office to ensure proper protections of UPG’s independent state as well as proprietary data. Ms. Southerland also reviewed the contract term and termination agreement provisions which allow for an initial two (2) year term, with automatic renewals unless the parties are unable to reach a mutual agreement regarding the scope of services and corresponding rates.

The resolution to approve this integration of HR Services was approved unanimously, with a requested additional amendment stating that approval is subject to legal opinion by UPG outside counsel that issues related to UPG’s independence as a 501(c)3 foundation are addressed and in no way compromised by the agreement.

UVA Associate Vice President and Treasurer Jim Matteo presented an overview of the process of Enterprise Risk Management (ERM) at UVA and the Health System, the purpose of which is to create, protect and enhance value by proactively managing emerging uncertainties that could either negatively or positively influence achievement of the organization’s objectives. Mr. Marquardt identified ERM Key Risks and Management Plans for UVA Health System, as had been communicated to the Health System Board of Directors and will continue to be communicated to the UVA Health System Board on a quarterly basis.

Mr. Lishke reviewed both the projected and actual financial impact of Health System headwinds by category, as well as FY18 operating income projection pressures and management response. Mr. Feist reviewed the UPG-specific annual impact of the same financial headwinds by category.

Dr. Shenkir introduced a resolution to engage audit firm BDO for the next three (3) fiscal years. The motion was seconded, and passed unanimously.

Ms. Rumsey presented an FY18 Financial and Operations and Investments update through February 2018 including Consolidated Income Statement, Consolidated Balance Sheet and Investment Results, as well as a status update on FY19 clinical department budgets and their deficit drivers.

Ms. Rumsey presented an Epic Revenue Cycle Implementation Status Update. Issues that have been identified and resolved with regard to revenue generation include scheduling templates, unscheduled referrals and orders to schedule, and reporting across Epic modules. Issued that have been identified and resolved with regard to revenue collectability include a financial screening at the time of service, billing new charges to an existing indigent account, adding financial aid after billing, Medicaid real time eligibility returning incorrect dates, and the Medicare secondary payer questionnaire directing claims to incorrect payer. Current metrics show that UVA continues to perform above average in some areas while below average in others. Metrics continue to be analyzed regularly.

 

June 14, 2018

UPG CFO Susan Rumsey provided a Financial and Operations update for FY18. The income statement demonstrates $13.1M operating margin before contributions of $32.4M to the School of Medicine. The balance sheet shows a decrease in net assets which reflects an operating loss of $19.3M through May. Investment results demonstrate that the pension plans are well funded. Due to lower than desired performance, investments will be divested from Wells Fargo and moved to UVIMCO. Workload trends indicate that May was a very strong month in terms of both patient volumes and collections, with the highest recorded collections in the history of UPG. Revenue cycle challenges due to Epic implementation continue.

Ms. Rumsey introduced the FY19 UPG Budget Proposal including major initiatives, assumptions and risks. Academic expenses continue to be anticipated in the financials. Efforts are underway to develop mission-based financial statements so these expenses may be reflected in the School of Medicine financials. The Consolidated UPG Budget shows a strong positive operating margin, which is sufficient to cover the entire pension expense. The primary drivers of the UPG margin are clinical departments and unallocated pension expense in other units. The clinical operating margin allows support of the academic mission. After discussion and questions regarding clinical funds flow, a motion to approve the consolidated budget was passed unanimously. Mr. McLaughlin expressed concern on behalf of the Finance Committee with regard to the budget being aggressive. A motion was made, seconded and passed unanimously to approve the Group Practice Fund Budget.

UPG General Counsel Mary Frances Southerland presented the UPG Proposed Bylaws Revisions, and the associated aims and procedural requirements of the revisions. The revisions include the creation of an Advanced Practice Provider Director, increasing the number of Public Directors by one (1) in order to maintain the Public Director majority, having five (5) At-Large Physician Directors (2 Non-Chairs, 3 Chairs) and clean-up of language regarding Director removal. A motion was made and approved to adopt the following resolution based on written consent via electronic vote, after the requisite 2-weeks notice.

UPB Board Chair Dr. Kate Acuff brought to the attention of the group that this was to be the last UPG Board of Directors Meeting during Bradley Haws’ tenure as CEO, and commended his dedication to the organization as a servant leader throughout his 14 years with the Foundation.

The remainder of the meeting was spent in Closed Executive Session.

 

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