Fiscal Year 2011 Annual Plan and Five Year Capital Plan

At its July 2010 Board meeting, the WellStar Health System (WellStar) Board of Trustees approved the Annual Plan (Budget) for operating funds and capital funds for its fiscal year beginning on July 1, 2010 and ending on June 30, 2011.

This Fiscal Year (FY) 2011 Annual Plan was the culmination of many months of effort put forth by our physician service line leaders, hospital administrators, outpatient service leaders, health system leaders and management at virtually every level of the organization.  It is integrated and consistent with WellStar’s overall strategic plan, service line plans and facility plans.  A summary of the FY2011 Annual Plan and the Five Year Capital Plan follows.

FY2011 Operating Plan

The WellStar FY2011 Operating Plan represents our continued commitment to our financial strength. While the overall economic condition continues to be uncertain and the ultimate impact of healthcare reform is yet to be determined, the planned operating margin of 6% is consistent with our FY2010 operating margin target of 6% (which has been achieved and exceeded) and the long-term targets outlined by our strategic plan. 

This level of financial performance has been achieved substantially through our nationally recognized and award-winning Opportunities 2010 program.  Through the Opportunities 2010 program, more than $90 million in annual, sustainable financial improvements have been implemented throughout WellStar.   

FY2011 Capital Plan

The FY2011 through FY2015 Five-Year Capital Plan outlines our shared vision and commitment to deliver world-class healthcare. Several strategic initiatives approved include:

• The immediate construction of a new $40 million, all private room, patient tower at WellStar Kennestone Hospital with the anticipated opening in FY 2012.

• A multi-service Health Park on our properties in East Cobb and Acworth, which will help us bring our services closer to the patients we currently serve in those areas. The total projected investment in these new campuses will exceed $140 million during the next five years.

• A second medical office building on our Hiram property to be completed in FY2012 with the replacement hospital completion to follow, which will support the West Cobb and Paulding communities. The total projected investment in this campus is estimated at $135 million.

• Renovation and expansion of surgical suites at WellStar Cobb Hospital and WellStar Windy Hill Hospital in FY2011.

• Investment in information technology continues to grow with a total of $27 million expected for FY2011 (and more than $124 million over the next five years), including significant commitments to clinical technologies and meeting federal HITECH Act guidelines. This investment is essential to meeting requirements outlined to receive federal stimulus funding as well as avoiding penalties on reimbursement in future years.

• In FY2011, more than $50 million has been committed to medical equipment replacements and upgrades with an additional $8 million for imaging equipment.

The end result of our commitment to our financial strength is that WellStar will be able to continue its mission to communities and patients we serve, while continuing to rank in the top quartile of financially stable health systems in the country.