CITY OF TORRANCE REVENUE BONDS SERIES 2010A, 20108, 2010C

Transcription

1 TORRANCE MEMORIAL MEDICAL CENTER Annual Financial Information & Operating Data FY 2015 (Rule 15c2-12) CITY OF TORRANCE REVENUE BONDS SERIES 2010A, 20108, 2010C

2 (i) TORRANCE MEMORIAL MEDICAL CENTER ANNUAL REPORT 2015 FACILITIES - Projected Capital Spending (in millions) Remaining Expected New Tower Project Related Costs - ( ) Routine Capital Equipment/Refurbishment ( ) Other Projects/Initiatives ( ) Total $11,582 59,000 92,801 Total Estimated Capital Spending ( ) $163,383 Annual201 OABCBondFiling2015 #1.xls

3 (i)(b TORRANCE MEMORIAL MEDICAL CENTER ANNUAL REPORT 2015 FACILITIES - Funding Sources of Projected Capital Spending (in millions) Operating Cash Flow Capital Campaign Total Sources $ $ 358 Projected Cash Flow Foundation Total estimated estimated estimated estimated estimated ,642 63,343 67,454 72,007 76,661 2,000 4,000 4,000 4,000 4,000 Total Available Funds 340, ,000 62,642 67,343 71,454 76,007 80, ,107 Annual201 OABCBondFiling2015 #1.xls

4 (ii) "SERVICE AREA AND COMPETITION - Market Share and Competition" Largest Hospitals Ranked by Acute Hospital Discharges South Bay Service Area 2015 Hospital Discharges Hospital 1. Torrance Memorial Medical Center 25, Los Angeles County Harbor/UCLA Medical Center 18, Providence Little Company of Mary Torrance 22, Kaiser Foundation Hospital - Harbor City 12, Memorial of Gardena 6, Providence Little Company of Mary San Pedro 7,887 Source: State of California Office of Statewide Health Planning & Development, Annual Utilization Report of Hospitals, 2015.

5 (ii)(b) "SERVICE AREA AND COMPETITION - Market Share and Competition" Acute Hospitals in Service Area Hospital Torrance Memorial Medical Center 37.7% 37.5% Providence Little Company of Mary Torrance 25.3% 25.9% Kaiser Foundation Hospital-Harbor City 8.1% 7.5% Los Angeles County Harbor/UCLA Medical Center 4.2% 4.5% Cedars Sinai Medical Center 4.0% 3.9% Little Company of Mary - San Pedro 2.2% 2.2% UCLA Medical Center 2.2% 2.1% % 24.5% 7.8% 4.3% 4.1% 2.3% 2.0% Source: lntellimed (Office of Statewide Health Planning & Development, State of California) Based on latest report as of 4th Qtr 2014.

6 (ii)(c) "SERVICE AREA AND COMPETITION - Utilization" Medical Center Utilization Statistics December ln~atient Activit~ Acute SNF Licensed Beds Acute SNF Available Beds ( 1) Acute 21,730 22,550 24,096 SNF 1,485 1,414 1, 142 Discharges 23,215 23,964 25,238 Acute 82,875 84,392 95,894 SNF 12,509 12,818 13,379 Patients Days 95,384 97, ,273 Average Daily Census Average Length of Stay - Acute Occupancy rate (Licensed Beds) Occupancy Rate (Available Beds) Inpatient Surgery Cases 6,284 6,409 6,979 Out~atient Activit~ Hospital Outpatient Total 285, , ,055 Outpatient Surgery Cases (2) 10,996 10,787 9,825 Emergency Services 63,730 70,478 77,618 Source: Corporation (1) 24 licensed inpatient beds are not available for inpatient use because they are used for outpatient procedures and other non-acute services (2) Outpatient Surgery cases performed at the Medical Center

7 Torrance Memorial Medical Center Medical Staff by Specialty As of December 31, 2015 Primary Specialty Description Allergy Anesthesiology Burn & Wound Cardiology Cardiothoracic Surgery Colon & Rectal Surgery Dentistry Dermatology Electrophysiology Emergency Medicine Endocrinology Family Practice Gastroenterology General Surgery Gynecology Infectious Diseases Infertility Internal Medicine lnterventional Cardiology Neonatology Nephrology Neurology Neurosurgery OB/GYN Oncology Ophthalmology Oral Surgery Orthopedics Otolaryngology Pain Management Palliative Care Pathology Pediatric Alergy Pediatric Cardiology Pediatric Critical Care Pediatric Dentistry Pediatric Endocrinology Pediatric Gastroenterology Pediatric Infectious Disease Pediatric Ophthalmology Pediatric Orthopedic Pediatric Otolaryngology Pediatric Pulmonology Pediatric Surgery Pediatric Urology Pediatrics Perinatology Physical Medicine Plastic Surgery Podiatry Psychiatry Pu I mono logy Radiation Oncology Radiology Reproductive Endocrinology Reheumatology Teleneurology Teleradiology Thoracic Surgery Urology Vascular Surgery ACTIVE OTHER TOTAL AVERAGE AGE Grand Total

8 (iv) "SUMMARY OF OPERATIONS AND FINANCIAL POSITION" Corporation Summary Statements of Operations and Changes in Net Assets (dollars in thousands) 2013 Revenues Total unrestricted revenues ( 1) $476,227 Operating Expenses Salaries, wages, and employee benefits 253,740 Purchased services, supplies, and other costs 184,379 Depreciation 25,781 Interest 3,415 Total operating expenses 467,315 Income from Operations 8,912 Nonoperating income (loss): Investment income (loss): 14,794 Unrealized gain (loss) on trading portfolio (2) 908 Other (2,982~ Excess (deficit) of revenues over 21,632 expenses Other changes in unrestricted net assets (3) 52, 192 Increase in unrestricted net assets 73,824 Changes in restricted net assets 41,080 Total increase (decrease) in net assets 114,904 Fiscal year ended December 31 (audited) $509, , ,780 28,765 4, ,884 17,836 15,731 (3,559) ~3,418~ 26,590 ~18,321~ 8,269 ~22,476~ (14,207) (1) Provision for doubtful accounts is netted in Total Unrestricted Revenues (2) Represents Unrealized Gains and Losses in the Investment Portfolio (3) Changes to the Minimum Pension Liability and Foundation Transfers to the Corporation $578, , ,029 43,387 10, ,252 7,709 4,628 (7,380) (3,523) 1,434 1,880 3,314 2,786 6,100 Annual201 OABCBondFiling2015 #1.xls

9 (iv)(b) "SUMMARY OF OPERATIONS AND FINANCIAL POSITION" Summary Statements of Financial Position Corporation Summary Balance Sheets (dollars in thousands) Assets Current Assets: Cash and cash equivalents Patient accounts receivable, net Assets limited as to use Other current assets Total current assets Assets limited as to use Property, plant and equipment, net Interest in net assets of Foundation Other assets Total assets 2013 $14,977 73, ,977 33, , , ,054 67, ,670 1,077,650 December 31, (audited) 2014 $52,768 64,979 88,574 78, , , ,886 79,232 15,980 1, 178, $41,666 71,520 89,529 31, , , ,867 80,691 12,934 1, 140,455 Liabilities and Net Assets Current liabilities Current portion of long-term debt Accounts payable and accrued liabilities Accrued salaries & other employee benefits Risk pool liabilities Self insurance liabilities Estimated third-party payor settlements Total current liabilities Liabilities for pension benefits Self insured liabilities Long-term debt, less current portion Total liabilities Net Assets: Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets 101,660 43,054 24, ,522 7,526 6, ,706 18,844 20, , , ,708 98,400 3, ,475 1,077,650 1,755 67, , ,241 8,011 7, ,746 79, , , , ,977 75,908 3, ,268 1,178,856 4,405 39,616 29, ,143 6,737 3, ,442 77,230 14, , , ,291 78,759 3, ,368 1,140,455

10 (iv)(c) "SUMMARY OF OPERATIONS AND FINANCIAL POSITION- Sources of Revenue" Payor Mix HCP/ THIPA ---Full and Shared Risk (1) Medicare Managed Care (non Medicare) Medi-Cal Self Pay Other Workers' Compensation Total Fiscal Year ended December 31, % 36.4% 36.6% 31.2% 28.0% 29.6% 23.1% 25.0% 23.3% 4.6% 5.3% 6.1% 2.6% 2.1% 1.7% 2.1% 2.7% 2.1% 0.4% 0.5% 0.7% 100.0% 100.0% 100.0% (1) Represents total gross revenue from HCP and THIPA group members. The gross revenues represent patient charges to their members enrolled in full risk (capitated) agreements with the Corporation and shared risk agreements with Health Plans whereby the Corporation is paid by the Health Plans on a fee-for-service basis. #1 Copy of Annual201 OABCBondFiling2015

11 (iv)(d) "SUMMARY OF OPERATIONS AND FINANCIAL POSITION- Capitalization" Corporation Capitalization (dollars in thousands) Long-Term Debt, including current portion Series 2001A Bonds Series 201 O Bonds Total Long-Term Debt Unrestricted Net Assets ( 1) Total Capitalization Long-Term Debt to Capitalization Ratio , , , , , % December , , , , , % , , , , , % (1) Unrestricted Net Assets of the Corporation does not include Torrance Memorial Medical Center Health Care Foundation temporarily restricted assets or permanently restricted assets of $78,759 and $3,318, respectively for 2015.

12 (v) "MAXIMUM ANNUAL DEBT SERVICE COVERAGE" Corporation Maximum Annual Debt Service Coverage (dollars in thousands) Historical: Excess (deficit) of revenues over expenses Plus: Depreciation Plus: Interest Plus: Unrealized loss (gain) on trading portfolio Plus: Loss (gain) on disposal of property and equipment (1) Fiscal Year Ended December $ 21,632 25,781 3,415 (908) 19 $ 26,590 28,765 4,448 3,559 $ 1,434 43,387 10,697 7, Income Available for Debt Service Maximum annual debt service requirement Maximum annual debt service coverage ratio (2) 49,939 16, ,362 16, ,937 16, (1) Represents Unrealized Gains and Losses in the Investment Portfolio. (2) For purposes of calculating interest on the Series 201 OA Bonds, the Series 201 OA Bonds actual rates were used. For purposes of calculating interest on the Series 201 OB and Series 201 OC Bonds, an assumed annual interest of 2.74% was used, which is the average of the SIFMA Index over the last twenty years.

13 (v)(b) "LIQUIDITY AND CAPITAL RESOURCES" (1) Corporation Liquidity Position (dollars in thousands) December 31, Cash and cash equivalents (2) $ 60,445 $ 79,443 $ Short-term fixed income (3) 48,830 32,934 investments Long-term investments (4) 201, ,246 Total cash and investments 311, ,623 Less: Investments restricted as to 85,317 87,819 use Total unrestricted cash and 225, ,804 investments Days cash on hand (5) ,217 34, , ,227 95, , Source: Corporation (1) The Corporation's Assets do not include Foundation investments. (2) Includes debt securities with maturities less than three months. Excludes investments restricted to use. (3) Includes fixed income investments with maturities less than one year. Excludes investments restricted to use. (4) Includes all fixed income investments with maturities greater than one year, mutual funds and equities. (5) Total unrestricted cash and investments, divided by the calculation of total operating expenses, minus depreciation, divided by 365.