Forum Focus December 2019

Vol. 2 December 2019

NEW MEMBERS

We’re pleased to announce that over the last few weeks two new members have been elected to your Board.

Mark Didier, CEO of Tallahassee Orthopaedic Clinic in Tallahassee, FL, has been elected by the Atlantic OrthoForum groups to represent them as one of the two ATOF CEO positions. Mark has been involved in the planning and execution of several ATOF regional meetings, including moderating the most recent Atlantic OrthoForum in Charlotte, NC.

AnnMargaret McCraw, CEO of Midlands Orthopaedics and Neurosurgery in Columbia, SC, has been elected by the Asheville OrthoForum groups to represent them as one of the two AOF CEO positions. Like Mark, AnnMargaret has participated in the planning of several AOF regional meetings and served as the meeting moderator at the 2019 Asheville OrthoForum. She also was a presenter at the 2019 Annual Conference.

We look forward to their participation in the Board and know they will make significant contributions.

THANK YOU'S

Thanks to Kayo Elliott and Karen Simonton for their time and service on the Board. Kayo hopes to spend more time with his family, especially with his daughters’ sport activities, and Karen is stepping down as CFO of OrthoVirginia.

NEW ORTHOFORUM MEMBERS

The Board met via conference call on Monday, December 16 to select new group members for 2020. The following groups were approved:

OrthoAlaska, Anchorage, AK

- 21 physician practice with a full array of ancillary services
- Represents our first group in the state of Alaska

OrthoSC, Conway, SC

- 29 physician practice along the coast of SC
- Product of a 2018 merger of three groups

Spectrum Orthopaedics, Portland, ME

- 38 physician practice that is part of a much larger multi-specialty physician group
- Represents our first group in the state of Maine

New OrthoForum Hospital Affiliate Membership

As most of you know, the OrthoForum held its first meeting for groups that have ownership in their own specialty hospital. Based on success of our inaugural OrthoHospital Meeting, the Board has voted to create an affiliate membership for any of these groups which have majority physician ownership, but for which their financial structure doesn’t allow for benchmarking data comparisons to other OrthoForum groups. The 2020 meeting for these groups/hospitals will be held in June in Chicago at the same time as the ASC specialty meeting.

The following groups have been accepted as hospital affiliate members for 2020:

Crystal Clinic, Canton, OH
39 physician practice with their own orthopaedic hospital

OSS Health, York, PA
34 physician practice with their own orthopaedic hospital

In addition, long-time member, McBride Clinic in Oklahoma City, OK will be transitioning its membership to this new affiliate category.

This is a new and exciting venture for the OrthoForum. These groups have the same independent mindset as our regular members, but this arrangement allows them to benchmark against each other and focus on the issues and strategies that impact their specialty hospital emphasis.

AAOS Board Presentation

Glenn Sumner and Mike McCaslin represented the OrthoForum in a December 5, 2019, presentation to the AAOS Board. The leadership of the AAOS requested that the two of them speak to the Board’s annual workshop on three subjects; private equity investments in orthopaedic groups, the emergence of supergroups (100+ physicians) and the latest in hospital relationships with orthopaedic surgeons.

This gave the OrthoForum continued exposure to AAOS leadership as we grow our relationship with this important organization.

2020 Annual Conference Preview

Just a reminder that our Annual Conference will be held on February 27-29, 2020, in Phoenix, AZ. See the OrthoForum Annual Conference agenda here. The theme for our meeting will be:

Building Partnerships: Can Private Orthopaedics Produce Value and Meet Employers’ Needs?

We will be exploring the potential for orthopaedic groups to directly contract with employers and the opportunities available to the OrthoForum to develop a physician network to pursue this idea. In addition, there will be several networking sessions and the introduction of the condition-based bundle concept, which may be the next CMS APM. The conference will begin with a “fireside chat” with Billy Beane, the Executive Vice-President of the Oakland A’s and the subject of the movie “Moneyball”.

Two preconference sessions will also be available. One will be a workshop on how our groups as employers can seek ways to reduce their health benefit costs. The second will be on the introduction of artificial intelligence and machine learning to practice management and clinical operations.

Check the 2020 Meeting Schedule here for a full listing of OrthoForum events.

Meet the Somerset Team

Michael J. McCaslin, CPA
Principal

mmccaslin@somersetcpas.com

Mike provides services for health care clients in multiple states throughout the country. As a principal in our health care group, he has many areas of expertise which include the development of health care delivery systems and multi-physician specialty organizations, and the negotiation of physician and hospital relationships. Mike also specializes in joint venture and merger analysis and transactions, strategic planning, buy-in and buy-out structuring and restructuring, development of governance structures and succession planning structures. In addition, Mike assists clients with income distribution methodology design and change management, new services development, ambulatory surgery center development and other physician and health system consulting needs. Mike speaks on health care, accounting and practice management issues to physicians, hospitals and other medical organizations.

Mike believes that the key to success is to surround yourself with smart, capable people and then empower them to make full use of their talent and expertise.

EXPERTISE
Joint Ventures and Mergers
Strategic Planning
Business Plan Development
Ambulatory Surgery Centers, Specialty Hospitals and Medical Office Buildings
Recruitment of Physicians and Key Management Positions
Succession Planning
Organizational Structures and Governance Structures
Service Line Co-Management

EDUCATION
BS — Accounting, Indiana University

PROFESSIONAL AFFILIATIONS
Indiana CPA Society — Member
American Institute of CPAs — Member
American Association of Orthopaedic Executives — Member
American Health Lawyers Association — Member
Healthcare Financial Management Association — Member
Indiana Medical Group Management Association — Member
Medical Group Management Association — Member
The American Academy of Orthopaedic Surgeons — Educational Programs Faculty Member
Orthopedics Today — Editorial Board

Mandi M. Clossey, CPA
Principal

mclossey@somersetcpas.com

Mandi provides consulting services for physician-owned health care practices and other health care organizations. Her areas of expertise include income distribution methodology design and change management, practice merger analysis and transactions, new services development, practice benchmarking and development of practice dashboards, buy-in and buy-out structuring and restructuring and the development of governance structures and succession planning structures. She speaks frequently in front of physician organizations and health care professional management organizations. Prior to joining Somerset in 2005, Mandi gained experience in tax, assurance and internal control reviews with a Big Four firm.

Mandi serves as a health, fitness and life coach — enabling others to surpass their physical and mental barriers to living a healthy and fulfilling life.

EXPERTISE
Income Distribution Methodology, Design and Change Management
Practice Mergers and Acquisitions
Practice Buy-In and Buy-Out Agreements
Benchmarking and Data Analytics
Dashboard Development
Governance and Succession Planning
Ancillary Service Development and Implementation
Commercial Payer Reimbursement Analysis

EDUCATION

BS — Accounting (Minor in Information Systems and Economics), University of Indianapolis

PROFESSIONAL AFFILIATIONS
American Institute of CPAs — Member
Indiana CPA Society — Member
Medical Group Management Association — Member
Indiana Medical Group Management Association — Member
Healthcare Financial Management Association — Member

Robert R. Carlson
Manager

rcarlson@somersetcpas.com

Rob is a Manager on our Health Care Team. He and all the professionals of Meridian CPAs integrated with Somerset CPAs in 2012. Rob began his career with a third party administrator where he was an internal auditor for health care and then later joined a national CPA firm as a staff accountant. He provides a variety of tax, accounting and consulting services including valuations for our health care clients.

EXPERTISE
Tax
Accounting
Consulting
Valuations

EDUCATION
BS, University of Indianapolis

Pamela J. Houk
Senior Accountant

phouk@somersetcpas.com

Pam is a Senior Accounting Services Associate on our Health Care Team. She joined Somerset in March of 2016 after working as an accountant in the healthcare industry for eight years.

Pam enjoys the outdoors and traveling in her spare time.

EXPERTISE
Healthcare Accounting and Bookkeeping
Benchmarking
Data Analysis

EDUCATION
BSA – Indiana Wesleyan University
ABM – Indiana Wesleyan University

PROFESSIONAL AFFILIATIONS
Women for Change Coaching – Outreach Committee

COMMUNITY AFFILIATIONS
Foundation for Fighting Blindness