Page 6 Improving Efficiency - Peninsula Regional Medical Center

A Message From The President
There’s no understating the importance of strategic planning
at Peninsula Regional Medical Center. From my office and
throughout our top leadership, strategy defines the essence of
executive responsibility. As the President exercises strategic
leadership, the Board of Trustees-led by Dr. Ray Hoy-provides the
influence and oversight.
Our 2009-2014 Strategic Plan is a change in direction as it
focuses more on the key issues that are at the core of our
organization. That, as we have pointed out in an accompanying story in this edition of
HealthFocus, includes recruiting and retaining physicians and staff, and redefining
our commitment to advanced technology and electronic connectivity.
We must embrace and implement new technology into our everyday lives,
demonstrating superior performance on all dimensions of patient-centered care, thus
advancing patient satisfaction. The uniqueness of the importance for us is that
advanced medical technology in the right hands can and does heal people and save
lives. The challenge, as Dr. Hoy touched on in his message, is that we’re doing this-and
have to-in an unsettled economic environment.
We must be forward thinking with our strategic plan as it is our roadmap for the
future. But, we all know how tough it can be at times to get a roadmap properly
refolded after opening it. To be successful you need the skills to do both. We must be
aggressive in our vision but at the same time practice resource optimization and
process and work flow management. Waste and inefficiency need to be eliminated. If
we allow that to occur, the best strategic plan isn’t worth unfolding in the first place.
Our Executive Team and Board of Trustees will monitor implementation of the
strategic plan based on the accomplishments of driving strategies and tactics as well
as performance against key indicators. In health care, you can’t afford to be caught
lagging behind.
Planning and Business Development Director Doug Wilson and I are always
happy to share more about our Medical Center’s vision for the future and how we
intend to implement this strategic plan into important emerging areas of need, some
perhaps even in your own backyard. If interested, please contact us through our
Speaker’s Bureau at 410-543-7287.
Peggy Naleppa, MS, MBA, Dr. M., FACHE
President/CEO
Executive Leadership Changes
Peggy Naleppa, MS, MBA, Dr. M., FACHE, President of
Peninsula Regional, was also named the CEO of the Medical
Center, and President/CEO of the Peninsula Regional Health
System on January 1, 2010.
Naleppa began her health care career as Director of
Neurosurgical Services at George Washington University Medical
Center in Washington, DC. She has served as a clinical leader or
as a senior executive at several hospitals in Maryland including
Anne Arundel Medical Center, Calvert Memorial Hospital and St. Cindy Lunsford
Mary’s Hospital. She has served as the President of the Maryland
Chapter of the Healthcare Financial Management Association (HFMA) and has held
several leadership positions with the Maryland Hospital Association. Naleppa is also a
Fellow of the American College of Healthcare Executives.
Naleppa, who is a registered nurse, holds a BS in Healthcare Administration from
St. Joseph’s College in Baltimore; a Master of Administration degree from the
University of Maryland University College, an MBA from The Johns Hopkins
University; and recently completed her Doctorate in Management with a
concentration in Systems Re-engineering from the University of Maryland College
Park. She and husband Dan live in Salisbury. They are parents to two daughters,
Adrienne and Renee.
Lura Cynthia “Cindy” Lunsford has been promoted to the position of Executive
Vice President/COO. Lunsford, who previously served as Peninsula Regional’s Vice
President of Ambulatory and Professional Services since April of 2005, assumed
administrative responsibility for the overall day-to-day operation of the Medical
Center last summer.
Throughout her 30 year career in health care, Lunsford has provided senior
executive leadership for multiple clinical programs, community outreach efforts and
hospital-based services and departments. Immediately before joining Peninsula
Regional in March of 2005, she served as the Vice President of Community Services at
University Health Services, Inc., a 612 bed hospital in Augusta, Georgia.
Lunsford holds a BS and MS in Nursing from the Medical College of Georgia and
an MBA from Augusta State University and is a Fellow in the American College of
Healthcare Executives. She also brings to her executive role at Peninsula Regional
clinical experience as a registered nurse in the emergency department and ten-year
tenure at University Health Services as Director of Emergency Services and Outpatient
Clinics.
She resides in Salisbury with her husband Dexter.
PENINSULA REGIONAL MEDICAL CENTER
FINANCIAL STATEMENT: JULY 1, 2008 - JUNE 30, 2009
STATEMENT OF OPERATIONS
*Patient service revenue - amount billed . . . . . . . . . . . . . . . . . . . . . . . $418,478,277
Amounts not collected:
Financial Assistance and uncollected accounts . . . . . . . . . . . . . . . (29,029,736)
Medicare and Medical Assistance
contractual amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,028,165)
Other amounts not collected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,905,418)
Patient service revenue - amount collected . . . . . . . . . . . . . . . . . . . . . 350,514,958
Other operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,976,481
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352,491,439
Operating expenses:
Salaries, wages and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169,385,332
Supplies and other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,643,761
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,162,693
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,263,105
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,454,891
** Net income available to improve facilities and enhance
technology and services in our community . . . . . . . . . . . . .$12,036,548
Income (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,877,331)
Total operating and income (loss) on investments . . . . . . . . . . . . . . . $ (5,840,783)
* Use of Patient Service Revenue
** Net income and other resources
Salaries Wages &
Benefits 40%
Other Amounts
Not Collected 4%
Medicare &
Medical
Assistance 5%
Supplies & Other
Expenses 35%
Financial
Assistance &
Uncollected
Accounts 7%
Interest
Depreciation &
Amortization 6%
Net Operating
Income 3%
were used for:
Capital spending for technology,
equipment and improvement totaled
$24,685,100.
Total capital spending for the fiscal
year that ended June 30, 2009 was
$40,198,924.
Note: Funding for capital is from
operations, contributions and bond issue
Over the past 10 years, we have spent
$159,403,987 for equipment and
improvements (not including the
current expansion project).
To date, our current expansion project
has incurred costs of $107,473,000.
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