April 2, 2004

Leadership meeting covers strategic planning efforts, budget preparations and more

The upcoming implementation of the hospitalwide strategic plan was a major theme of the leadership meeting held March 30, along with developing the FY '05 budget process, hospital construction updates and preparations for the Democratic National Convention.

Allison Rimm, vice president for Strategic Planning and Information Management and co-manager of the strategic planning process, led the discussion about the hospital's strategic plan. Almost 200 people on seven task forces have been involved with the plans. "The level of engagement from everyone in this process has been phenomenal," said Rimm. "We've been very impressed. The energy and personal commitment of all the task force members have been remarkable."

Rimm outlined the process so far. In the initial assessment phase, the task forces re-evaluated the hospital's mission and strategic goals. The strategic goals include achieving budget margin targets, enhancing the excellence of clinical programs, strengthening the focus on quality and patient safety, as well as maintaining a balanced mix of clinical services offered. Some of the challenges — and opportunities — that need to be considered in reaching these goals include looking at patient demand, levels of reimbursement from payors, and legal and regulatory changes.

Rimm also explained the groups' methodology in evaluating potential growth and service mix for the clinical services. Specialties were classified into three categories Ð services that have been targeted to grow, services in which the hospital is looking to retain current volume and services in which the focus will be on growing niche or specific sub-specialty areas. Rimm emphasized that, when placing services into these
categories, the groups also considered the site of care for each area, whether they could grow off campus or whether the service needed to remain on campus.

From this planning process, several striking themes came to the forefront when the task forces reported back to the steering committee.

• A strong consensus that there is a need to grow to maintain the hospital's preeminence in patient care and its position in the marketplace.
• The value of providing high-quality and safe patient care, while attracting, nurturing and retaining its world-class workforce.
• An understanding that investing in information systems and technology is critical to supporting the clinical strategy.
• The need to seek out innovative ideas throughout the hospital and streamline the process of putting them into practice.
• A strong focus on process improvement in all areas of the hospital.
• The importance of communication across departments and services to share best practices and innovative approaches to common problems.

Now that the task force plans have been completed and reviewed by the strategic
planning steering committee, they are being consolidated into an overarching strategic plan, which will be presented to certain decision-making bodies throughout the hospital to elicit feedback. Once the feedback is integrated and the final plan is adopted, the implementation phase will begin. Broad communications about the strategic plan will be disseminated throughout the hospital in the spring.

Also at the leadership meeting, Katie Hope, director of the MGH Budget Office, gave a presentation about the current FY '05 budget planning process. A preliminary look at next year's budget predicts a possible budget gap ranging from $45 million to $93 million, depending upon the hospital's capital budget needs.

This estimated range is based on such assumptions as modest inpatient and outpatient volume growth, substantial rate hikes from certain payors, moderate expense growth,
significant capital spending and the implementation of major programs in FY '05.

Hope also reported that the hospital did well in the first quarter, but through February, FY '04 patient revenue is $4.2 million behind budget, year-to-date.

David Hanitchak, from MGH Planning and Construction, gave an update about the various building projects at the hospital. The Yawkey Center for Outpatient Care is
close to completion with the first occupants moving into the building scheduled for
October and a second move six to eight weeks after that. Construction for phase
two will begin in 2006 with an estimated completion in 2009.

Construction also continues on the research building at Charles River Plaza, which is expected to open in the fall of 2005. Hotel developer Carpenter & Company will soon begin construction work to create a 300-room, four-star hotel in the former Charles Street Jail.

Construction projects on Cambridge Street continue with the renovations of the Charles Street/MGH MBTA station, which will have a new temporary building or — head house — this summer. New sidewalks, curbing, lighting and other changes also will be made on Cambridge Street.

Jean Elrick, MD, senior vice president for Administration, gave an update about potential future construction projects in the Nashua Street area that may help alleviate the hospital's space and capacity constraints.

Bonnie Michelman, director of MGH Police and Security, gave a brief overview
of the plans being made to accommodate the Democratic National Convention (DNC), which will be held at the nearby Fleet Center July 26 to 29. She and her staff have been meeting with the DNC planning committee, government officials and law enforcement agencies to ensure that the access to and operations at the hospital are smooth and safe throughout the time of the convention. A hospitalwide committee has been convened to address issues concerning patient care and to help communicate the convention plans and MGH accommodations to employees, patients and visitors as needed.