Emory Hospitals An Overview

1. Emory Hospitals An Overview • Emory University Hospital • Emory Crawford Long Hospital • Wesley Woods Hospital/Center “more than a hospital” Robert J. Bachman , Chief Operating Officer, EUH Mark Aycock, Chief Financial Officer, Emory Hospitals

2. Emory Hospitals - An Overview • Beginnings • Current Configuration • Leadership (Management) • Services • Operational Statistics

3. Emory University Hospital Beginnings/Current Configuration • Chartered in 1904/Opened as Wesley Memorial Hospital in 1905 • Moved to Emory campus in 1920s • Currently • Licensed to operate 579 beds • Actual: 360 Med/Surg Beds 82 ICU Beds (new 20 bed NICU open in 1/07) 52 Rehab Beds (38 in use) 20 Psych Beds (18 in use)

4. Emory Hospitals – Leaderhsip • EUH: Robert J. Bachman, COO Mark Aycock, CFO Susan Grant, R.N., CNO, EHC Ira Horowitz, M.D., CMO Nathan Spell, M.D., CQO ECLH: Albert Blackwelder, COO James Steinberg, CMO Richard Gitomer, M.D., CQO WW: Peter Basler, COO Joseph Ouslander, M.D., CMO

5. Emory Healthcare - System Leadership For EHs • John T. Fox, President/CEO • James Hatcher, CFO • Susan Grant, R.N., CNO • William Bornstein, M.D., Ph.D., CQO

6. Emory University Hospital 12,000 surgeries (300 transplants) 700 Heart surgeries/ 28,000 ED visits (>28% of pts admitted) 494 - Adjusted Average Daily Census 27,500 – Adjusted Admissions 2,700 FTEs (3,300 employees) ALOS – 6.4 days CMI – 2.15

7. Emory University HospitalServices • Cardiology/Cardiovascular Surgery • Oncology – WCI • Neurology/NeuroSurgery • Transplantation • Orthopaedics • The Rollins Pavilion • No OB/No Pediatrics - CHOA

8. Emory University Hospital Organizational Chart President & Chief Executive Officer EMORY HEALTHCARE John T. Fox Chief Quality Officer, Emory Healthcare/Chief Medical Officer, Emory Hospitals William A. Bornstein, MD, PhD Chief Operating Officer — EUH Senior Associate Administrator Emory Hospitals Robert J. Bachman Medical Staff • Infection Control • EHC Information Systems’ • Medical Director • Medical Staff Office • Risk Management Office Chief Medical Officer Ira Horowitz, MD Development Pathology & Laboratory Services Pharmacy Imaging Services Transplant Services Hospital Auxiliary Associate Medical Director Donald C. Davis, MD, PhD Associate Administrator Emory Hospitals David E. Pugh Associate Administrator Emory Hospitals Toni F. Wimby, CHE Associate Administrator Chief Operating Officer Emory Hospitals CRM, Mental Health Services, & Wesley Woods Peter A. Basler, Jr. Chief Human Resources Officer Emory Healthcare Margaret A. Bloomquist, SPHR Chief Financial Officer Emory Healthcare James T. Hatcher, CPA Chief Nursing Officer Emory Healthcare Susan M. Grant, MS, RN, CNAA Center for Rehabilitation Medicine Hospital Rehabilitation Services Mental Health Services • Food & Nutrition Services • Guest & Volunteer Services • Neurodiagnostics Testing • Pastoral Services • Respiratory Care Services • Electrocardiography • Pulmonary Function • Respiratory Therapy • Education & Learning Services • Employee Health Services • Workers’ Compensation • Educational Information & Media Services • Medical Library • EHC Service Performance • Materials Management • Purchasing • Social Services • Clinical Resource Management • Value Analysis Gambro Medical Services & Patient Services Information Systems Nursing Systems Integration & Maternity Services Oncology Services Perioperative & Endoscopic Services Support Systems General Surgery & Transplant Services Surgical Specialties/Community Services Geriatric Nursing Services Emergency Services • Anesthesiology Services • Facility Planning & Development • Facility Services • Environmental Services • Laundry • Facilities Management • Property Management • Public Safety • Safety • Medical Engineering • Telecommunications Chief Financial Officer Emory Hospitals Mark A. Aycock Associate Administrator Emory Hospitals Barbara E. Hargett, RN • Financial Services • Accounts Payable • Decision Support • Financial Planning • General Accounting • Payroll • Management Engineering • Medical Records • Patient Accounts • Admissions • Audit Coordinators • Business Office Assistant Administrator Emory Hospitals Jane Vosloh, RN Assistant Administrator Emory Hospitals Larry F. Hodges, CHE Assistant Administrator Emory Hospitals M. June Connor, RN Clinical Performance Improvement Regulatory/Accreditation GID Operating Room PACU Ambulatory Surgery Sterile Processing Same Day Surgery Pre Admit Testing Human Resources • Cardiac Services • EP • Cardiac Cath Lab • Heart Failure Program • Cardiac Nursing Services Chief Quality Officer Nathan Spell, MD Source: Administration, Emory Hospitals Updated September 2006

9. Emory Crawford Long Hospital Licensed for 511 beds – 420 beds in service Emergency Room - 50,000 visits/year 14,000 surgeries (IP & OP) – 1,100 cardiac OB - 4,200 births/year “Open Medical Staff” Long Term Acute Care Hospital CMI – 1.6 FTEs – 2300 Adjusted FTEs per AOB – 4.8 Adjusted Admissions – 33,000/year ALOS – 5 days

10. Emory Crawford Long Hospital Organizational Chart President & Chief Executive Officer EMORY HEALTHCARE John T. Fox Chief Operating Officer — ECLH Senior Associate Administrator Emory Hospitals Albert K. Blackwelder, FACHE Chief Quality Officer, Emory Healthcare/Chief Medical Officer, Emory Hospitals William A. Bornstein, MD, PhD Medical Staff Cardiothoracic Research Lab Development • Infection Control • EHC Information Systems’ • Medical Director • Medical Staff Office • Risk Management Office Chief Medical Officer James P. Steinberg, MD Hospital Auxiliary Associate Medical Director James K. Bennett, MD Associate Medical Director William M. McKinnon, MD Associate Administrator Emory Hospitals Toni F. Wimby, CHE Associate Administrator Emory Hospitals David E. Pugh Associate Administrator Chief Operating Officer Emory Hospitals CRM, Mental Health Services, & Wesley Woods Peter A. Basler, Jr. Chief Human Resources Officer Emory Healthcare Margaret A. Bloomquist, SPHR Chief Financial Officer Emory Healthcare James T. Hatcher, CPA Chief Nursing Officer Emory Healthcare Susan M. Grant, MS, RN, CNAA • Anesthesiology Services • Facility Planning & Development • Facility Services • Environmental Services • Laundry • Facilities Management • Property Management • Public Safety • Safety • Medical Engineering • Telecommunications Gambro Medical Services & Patient Services Information Systems Nursing Systems Integration & Maternity Services Oncology Services Perioperative & Endoscopic Services Support Systems General Surgery & Transplant Services Surgical Specialties/Community Services Geriatric Nursing Services Emergency Services • Food & Nutrition Services • Guest & Volunteer Services • Neurodiagnostics Testing • Pastoral Services • Respiratory Care Services • Electrocardiography • Pulmonary Function • Respiratory Therapy • Financial Services • Accounts Payable • Decision Support • Financial Planning • General Accounting • Payroll • Materials Management • Purchasing • Social Services • Clinical Resource Management • Value Analysis Hospital Rehabilitation Services LTAC • Education & Learning Services • Employee Health Services • Workers’ Compensation • Educational Information & Media Services • Medical Library • EHC Service Performance Associate Administrator Emory Hospitals Barbara E. Hargett, RN Chief Financial Officer Emory Hospitals Mark A. Aycock Clinical Performance Improvement Regulatory/Accreditation • Management Engineering • Medical Records • Patient Accounts • Admissions • Audit Coordinators • Business Office Chief Quality Officer Richard Gitomer, MD Assistant Administrator Emory Hospitals Jane Vosloh, RN Assistant Administrator Emory Hospitals Larry F. Hodges, CHE Assistant Administrator Emory Hospitals M. June Connor, RN GID Bronchoscopy Operating Room PACU Ambulatory Surgery Sterile Processing Same Day Surgery Pre Admit Testing • Cardiac Services • EP • Cardiac Cath Lab • Heart Failure Program • Cardiac Nursing Services Human Resources Source: Administration, Emory Hospitals Updated September 2006

11. Wesley Woods Hospital 100 Geriatric Hospital Long Term Acute Care Hospital No ED/OR/ICU “Continuum of Care” Budd Terace

12. Wesley Woods Center Organizational Chart CEO, Woodruff Health Sciences Center & Chairman of the Board, EHC Chairman of the Board, WWC Michael M.E. Johns, MD President & Chief Executive Officer EMORY HEALTHCARE John T. Fox Chief Quality Officer, Emory Healthcare/Chief Medical Officer, Emory Hospitals William A. Bornstein, MD, PhD Chief Operating Officer Wesley Woods Center Peter A. Basler, Jr. • Infection Control • EHC Information Systems’ • Medical Director • Medical Staff Office • Risk Management Office Chief Medical Officer Wesley Woods Center Joseph G. Ouslander, MD Pastoral Services Director Elwood H. Spackman Development Rehabilitation Services Mental Health Services Assistant Administrator Emory Hospitals Barbara E. Hargett, RN Medical Director Wesley Woods Hospital Frank W. Brown, MD Medical Director Long Term Care Jeff Lesesne, MD Medical Director Long Term Acute Care Hospital Gerry Staton, MD Clinical Performance Improvement Regulatory/Accreditation Director of Quality, Wesley Woods Center Vicki Davis Associate Administrator Chief Human Resources Officer Emory Hospitals Margaret A. Bloomquist, SPHR Associate Administrator Chief Financial Officer Emory Hospitals James T. Hatcher, CPA Chief Nursing Officer Emory Healthcare Susan M. Grant, MS, RN, CNAA Wesley Woods, Inc. CEO Ken Weber Budd Terrace Administrator Janice Langford Health Center Administrator & WWC Assoc. Administrator William J. Such • Education & Learning Services • Employee Health Services • Workers’ Compensation • Educational Information & Media Services • Medical Library • EHC Service Performance • Materials Management • Purchasing • Social Services • Clinical Resource Management • Value Analysis Medical Services & Patient Services Information Systems Geriatric Nursing Services SOURCE Director Jennifer Schuck Wesley Woods Clinic Administrator JoAnn Croley Director of Nursing Wesley Woods Center Becky Provine, RN Assistant Administrator Emory Hospitals Mark A. Aycock Assistant Administrator Emory Hospitals Larry F. Hodges, CHE • Financial Services • Accounts Payable • Decision Support • Financial Planning • General Accounting • Payroll • Management Engineering • Medical Records • Patient Accounts • Admissions • Audit Coordinators • Business Office Wesley Woods LTAC* Administrator William J. Such Human Resources *Wesley Woods Long Term Acute Hospital (LTAC) is a separate corporate entity with a management agreement with Wesley Woods Center Source: Administration, Emory Hospitals Updated September 2006

13. Emory Hospitals FY07 Budget • Total Operating Revenues of $1.025 billion from $2.1 billion in billings • Emory University Hospital $586 million (57%) • Emory Crawford Long Hospital $384 million (38%) • Wesley Woods Center $55 million (5%) • Total Operating Expenses of $957 million • Operating Income of $68 million or 6.6%

14. Cardiology ServicesMarket Share – 2004Emory Hospitals combined = 15%

15. Orthopaedics and Spine ServicesMarket Share – 2004Emory Hospitals combined = 8%

16. Oncology ServicesMarket Share – 2004Emory Hospitals combined = 16%

17. Neuroscience ServicesMarket Share – 2004Emory Hospitals combined = 14%

18. Emory University HospitalFY2007 Payer Mix Information

19. Emory Crawford Long HospitalFY2007 Payer Mix Information

20. Wesley Woods HospitalFY2007 Payer Mix Information

21. Emory Crawford Long HospitalFY2007 Expense Information ($957M)

22. Emory Hospitals Cash Flow FY2007 • Cash Generated from Operations: $105 million • LESS: Debt Principal Payments $30 million Capital Expenditures $37 million Clifton Road Development $12 million WHSCAB & SOM Funding $34 million Funding Total $113 million This is our biggest financial challenge as a health science center.

23. Medical Education • Hospital, via billing from GME office, reimburses SOM for residents in accredited programs • Hospital is then partially reimbursed for this expense from the Medicare program through the filing of an annual cost report • Medicare has capped Emory Hospitals resident FTEs at 356 • Tightly regulated area, particularly on accounting for residents time and the location where they are working

24. Research • The hospitals have a standard rate of 35% of charges for research (was 40% in FY2006) • Hospital rates change each September and a new listing of charges is provided to the Clinical Trials Office for download into the Siteminder System • Upfront identification of research patients is a must if proper hospital billing is to occur • Research revenues are budgeted at $1.5 million for FY07 (0.1% of hospital revenues)

25. Emory Hospitals: An Overview • Q U E S T I O N S

26. Emory Healthcare Organizational Chart CEO, Woodruff Health Sciences Center & Chairman of the Board, EHC Michael M.E. Johns, MD Chief of Staff Gary L. Teal, MBA President and Chief Executive Officer John T. Fox President & CEO, Emory Children’s Center Barbara J. Stoll, MD Director,The Emory Clinic Wright Caughman, MD Chief Operating Officer,Emory University Hospital Robert J. Bachman Chief Quality Officer William A. Bornstein, MD, PhD Chief Operating Officer,Wesley Woods Center Pete A. Basler, Jr. Senior Director, Managed Care S. Patrick Hammond Chief Operating Officer, The Emory Clinic Donald I. Brunn Chief Compliance Officer Anne Adams, JD Chief Operating Officer,Emory Crawford Long Hospital Albert K. Blackwelder Senior Director, Marketing Una H. Newman Chief Information Officer Dedra Cantrell Chief Financial Officer, Emory Healthcare James T. Hatcher, CPA Chief Human Resources Officer Margaret A. Bloomquist Associate Administrator Debra Bloom, APR Chief Nursing Officer,Emory Healthcare Susan M. Grant, RN, MS, CNAA-BC Senior Director, Risk & Insurance Svcs. Shulamith Klein Executive Director, Emory Center for Pastoral Services Elwood H. Spackman, M.Div. Source: Emory Healthcare, Office of the President and Chief Executive Officer Updated October 2006