RUCE

INNON

Address

1611 Edgemoor Lane, Everett,

Washington 98203

Phone

Phone:

(425) 353-5642

Bruce@BruceMcKinnon.com

EDUCATION

High School

(1960); Worthington, Minnesota

College



Undergraduate

B.A. (1964);

Double Major, History and Political ScienceHamline University, St. Paul, Minnesota (Pre-Law)



raduate

M.B.A. (1979);

Masters Degree in Business Administration,University of Southern Mississippi, Hattiesburg, Mississippi

EXPERIENCE

Des Moines Orthopedic Surgeons, P.C. (DMOS), was then a

$30,000,000 gross

($19,000,000 net) group

practice--3 podiatrists & 19 physicians: 3 general orthopedists & 16 fellowship trained specialists (2 pain management + 14 orthopedists--hand, foot & ankle, sports, trauma, spine and total joint. The Group islocated in a (1994) 65,000 sq. ft. clinic (40 exam, 1 MRI, 8 cast & 4 x-ray rooms + separate areas for then hospital leased P.T., hand therapy & same-day surgery). Group owned 5 OR surgery center was later added to the practice. DMOS ranked in 95

percentile in U.S. in production with 90 FTE’s, a $650,000 computing investment (80+ P.C.’s in a Novell/SCO UNIX integrated, 4 server network—LAN/WAN) withelectronic medical records, hospital MIS access and an outcome study commitment. The 3 office, 15 satellite group dominated an 80 mile drawing area (90+% of Methodist and Lutheran Hospital orthopaedics) with 30+ contracts (IPA, PPO & HMO) in a rapidly evolving managed care environment.

Revised Business Structure

: Legal--

totally revamped corporate and building partnership documents.

Personnel--

Instituted new governance structure, a broader but more cost effective benefit program (health, dental, disability & lifeinsurance, and flex benefit plan), policy manual, team management and CQI.

Finance--

Led conversion of G/L, A/P andpayroll (with integrated electronic Kronos time clock and direct deposit software) to Great Plaines Dynamics software andMedical Group Management Associations

Chart of Accounts

. Outsourced pension plan tracking (SmithBarney investmentmix) to Milliman & Robertson.

Computing--

Initiated conversion of LAN to distributed Network (Microsoft Office 97).Led selection and implementation of Cubix NT fax communication server, Compaq Proliant 6000 (Medical Managerbilling system) and Proliant 2500 (LAN) servers

plus

sophisticated telephone (Corel/Tadiran)

call tracking

software.Developed and instituted internet web site.

Revitalized Operations:

Facilitated cross training and stabilization of

high turnover

billing department. Deployed newfee schedule, CPT/ICD-9 coding guides and A/R management monitoring tools (reduced A/R

turnover ratio

to 1.8months). Revamped MIS file structures and expanded EDI links. Implemented comprehensive marketing plan thatincluded a highly successful workers comp outreach program targeting employers and insurance networks. Negotiated

high returns

on managed care contracts (based on RBRVS). Cut costs and deployed budget. Facilitated selectionnegotiated purchase and directed installation of MRI. Directed recruitment of 5 orthopedic surgeons and 3 podiatrists.Prepared Board agendas and minutes.

Moved to Seattle to raise adopted children in multi-cultural environment. Later began career in real estate.



The Denver Orthopedic Specialists, P.C. (DOS) was a 40+ M.D., multispecialty, full-asset merged (effective 1/1/94), geographically distributed (10 offices, 10 hospitals) group practice. Denver OrthopedicClinic, P.C. (DOC), Denver’s oldest & largest orthopedic group (upper extremity, total joint, sports medicine, spine, tumor and pediatrics). DOS was heavily entrenched in outcome studies withinvolvement in 17 ongoing protocols plus SF-36/HSQ. DOC drew patients from 3 states, served 3 major hospitals and 2 satellites in the 5th highest penetrated managed care (discount FFS, risk & capitation payments) market in U.S. (MSO’s, PHO’s, IPA's & Groups Without Walls).

Revised accounting systems:

Converted G/L and A/P to Computer Associates’ ACCPAC+ software utilizing MedicalGroup Management Association’s

chart of accounts

. Installed new financial & budget reporting system and physician &P.A. income distribution formulas (70/30 split of net receipts) using 12-month rolling average.

Enhanced computing system:

Upgraded operating systems--UNIX (added LAN emulation package to extend A/Rsystem to 20 work stations) and Novell. Replaced 8 - 80286 computers with 50--80486 and Pentium PC's used in finance,research, medical records and transcription. Converted to Microsoft Windows environment (Windows for Work Groups,Word, Excel, Access, Outlook & Power Point).

Expanded practice base:

Negotiated higher managed care reimbursement rates with many major insurance networks(e.g., Kaiser Permanente, FHP, Sloans Lake PPO, United Healthcare, HMO Colorado). Designed floor plan for new18,500 square-foot office which included areas for research, PT, cast plus 3 x-ray rooms and 26 exam rooms. Negotiatedfinancing and designed and marketed 2--1600+ square-foot satellite offices. Recruited physician + 3 P.A.’s. Initiatedand crafted

full-asset merger

of 6 orthopedic groups. Implemented new benefit program {health, dental, life, disability,professional and general liability, cafeteria, 401(k) & money purchase pension plans} and group purchasing plan.

Managed Operations:

Personnel--

Initiated performance evaluations, cross-training and “

bottom-up

” team management.Reorganized operations.

Procedures—

Implemented pre-registration, insurance verification, pre-surgical deposits,“payment-for-today’s services”, and electronic data integration (EDI). Reduced A/R

turnover ratio

to below 1.8 months.Prepared Board agendas and minutes

. Accepted position with DMOS (see above).

August 1995 to October 1998

CEO

DES MOINESORTHOPAEDICSURGEONS,P.C.(

DMOS

)West Des Moines, Iowa

November 1991 to July 1995

ADMINISTRATOR

DENVERORTHOPEDICSPECIALISTS,P.C.

(

DOS

)

Formerly-

ADMINISTRATOR

and

CEO

DENVERORTHOPEDICCLINIC, P.C.

(

DOC

)

Denver, Colorado

mplemented A/Rmanagementmonitoring tools,

Resume of Bruce W. McKinnon Page 2

Washington Sports Medicine, P.C. (WSM) was Seattle’s largest private, multi-disciplined sports medicine practice (sports fellowship trained orthopedic, pediatric & family medicine M.D.'s and dieticians). WSM also served as team physicians for the University of Washington Husky athletic programs.

Transitioned and reorganized group. Secured

practice set-up

bank financing:

Converted GL and A/Pto Computer Associates’ ACCPAC+ accounting system software.Facilitated formation of professional corporation and building partnership. Instituted new income andexpense allocation formula. Developed and deployed strategic plan. Recruited 3 physicians.

Directed Operations:

Revised billing and collection procedures, improved cash flow, reduced contractualadjustments. Increased return on managed care contracts. Directed budget management. Prepared Boardagendas and minutes

. Offered position with DOC (see previous page).



Founder of medical practice consulting and computing firm. Set up 44 practices. Recruited 10 physicians. Designed 9 freestanding clinics (supervised construction on 3 new buildings). Set-up and managed 120 M.D.' IPA. Designed and sold computer software and hardware systems for physicians’ offices--12 installations, 9 different specialties.

Management and Strategic Planning Consultant to specialist and primary care physicians:

Set-upmedical practices. Services included:

(1)

group practice development --

“turn key”

set-ups, mergers,acquisitions, multi-site facility strategies and benefit plans;

(2)

physician contract preparation andnegotiation--partnership and employment agreements and income distribution formulas;

(3)

guide toorganizations addressing IPA/PPO/managed care issues; and

(4)

computer system selection.

Conducted practice management evaluations:

(1)

Analyzed office functions, physician and employeeproductivity, personnel management, computer systems, fee structure, income distribution formulas,practice expansion plans, managed care contract strategies,

(2)

presented findings and recommendations,and

(3)

provided summary report.

Streamlined operations:

(1)

developed client systems to maximize reimbursement and monitorperformance;

(2)

designed forms--patient brochures, charge tickets listing procedures and diagnoses basedon CPT and ICD-9-CM, management reports, collection systems, medical and ancillary record content, etc.;

(3)

trained personnel; and

(4)

implemented new procedures.

Designed clinics:

(1)

designed and prepared site and floor plan

blueprints

--a two-story, 6,000 square-footOB-GYN office* with lab and ultrasound; a two-story, 10,000 square-foot pediatric office* with lab andx-ray; a two-story 7,500 square-foot dermatology office* with a lab and 2 minor surgery suites; a 4,000square-foot ENT office with x-ray and allergy testing; a 2,500 square-foot ophthalmology office* withoptical lab; a two-story 5,200 square-foot dental office with 5 opratories and x-ray; a 3,500 square-footOB-GYN branch office*; a two-story 8,000 square-foot family practice office with lab and x-ray and aEKG/treadmill lab; and a 3,000 square-foot plastic surgery office with a surgery suite*;

(2)

negotiatedconstruction and permanent financing loans;

(3)

negotiated construction and architectural contracts; and

(4)

supervised construction on 6 building projects*

without

presence of architect.

Designed software and sold computer systems (1981-1986):

Formed computer firm and hardwaredealership (OEM/VAR). Developed multi-user, computerized billing system (software package) formedical groups. Directed operations and marketing. Demonstrated, sold and installed 12 computer systems($50,000+/installation). Trained personnel and provided technical support and software maintenance.

Consulting assignment led to Seattle position (see above).

February 1989 to November 1991

ADMINISTRATOR

and

CEO

WASHINGTONSPORTS

MEDICINE,P.C.

(

WSM

)

Kirkland, Washington(Seattle)

March 1977 to January 1989

PRESIDENT

and

CEO

SUPERSYSTEMSCORPORATION

(

SSC

)

Hattiesburg, Mississippi

Resume of Bruce W. McKinnon Page 3

Forrest General is a 537 bed hospital and trauma center (which included lithotripsy, open-heart surgery, MRI, freestanding psychiatric and 23 hour surgery center) located in a two-college community of then 50,000 with two hospitals (750 beds), a drawing area of 400,000 and 500+ board certified physicians. In1977, Hattiesburg was ranked 6th in the U.S. for living quality and 1st in health care (for cities under75,000 in population).

Administrative Assistant (part time) while attending graduate school:

Assigned special projects incollections, materials management, cart logistics, organizational development and unit dose. Designedmicrofilm MIS and an inventory control system for orthopedic implants in the O.R. Developed plan forreorganizing O.R. and patient discharge program. Served as consultant reporting directly to CEO andExecutive V.P.

Started private consulting business (see Super Systems Corp, previous page).



The Hattiesburg Clinic (HCPA)

was

a 30 physician, 120 employees, multispecialty group practice in a 150 physician community. Hattiesburg was ranked #1 in healthcare and # 6 in quality of life for cities under75,000 in population

(

small city

Places Rated Book, 1977).

Today, Hattiesburg is a 500+ physician community. HCPA (main clinic-250,000 square feet) consists of 250+ physicians, 1,880 employees, 19 family practice satellites and 12 “Free-standing” dialysis centers—and is now one of top 100 groups in size in U.S. The Milken Institute ranked Hattiesburg 31

out of the 179 best performing metropolitan areas in which to live in the U.S..

Managed 30 physician group:

Practice consisted of surgery (general, thoracic, vascular, cardiovascular),neurosurgery, orthopedics, ENT, OB-GYN, pulmonology, nephrology, cardiology, gastroenterology,rheumatology, hematology, oncology, internal medicine, neurology and family practice. Ancillarydepartments included P.T., dietary, EEG/EMG, EKG/treadmill, pulmonary functions, dialysis, andcontracted pathology and radiology.

Directed operations:

Designed personnel policies and all systems for appointments, registration, medicalrecords, insurance, billing, collections, inventory control and maintenance. First Administrator in U.S. tocomputerize the 1974 California Relative Value Study (CRVS).Served as “clerk-of-works” on five-story clinic construction program (90,000 square feet). Recruited 13physicians (practice grew from 17 to 30 M.D.’s). Coordinated activities of 3 organizations (including P.A.,equipment leasing company, and building corporation). Prepared Board agendas and minutes.

Author:

Wrote the 1974 Medical Group Management Association 54 page publication entitled

TheSuperbill--A Uniform Billing and/or Claims System.

Accepted part time position with Forrest General Hospital (above) in order to attend graduate school.



The Medical Education and Research Foundation (501-C3) was a 250+ physician academic faculty group practice located at St. Paul-Ramsey Hospital, a 550 bed, University of Minnesota affiliated teaching hospital. MERF was later Minneapolis and St. Paul’s second largest group practice and part of the largest managed health care, Integrated Services Network (ISN) in Minnesota

Managed 80 employee, physician' billing office for academic plan:

Reorganized, designed and equippednew business office. Directed operations. Devised computer charge tickets for 20+ medical and surgicaldepartments based on 1969 California Relative Value Study (CRVS), first U.S. and Minnesota computerizedadaptation. Responsible for

systems work

on new computer system designed for billing, insurance andcollections.Key player in the development of what became the

first

managed care (capitated) contract in Minnesotabetween a

fee - for - service

group (Ramsey M.D.'s) and a fully capitated system (at that time called

Group Health of St. Paul

)----before Paul M. Ellwood, M.D., founder of Interstudy and the Outcomes Institute(Minnesota), coined the term “HMO.”

Offered position with Hattiesburg Clinic (see above).

March 1977 to August 1979

ADMINISTRATIVEASSISTANT

(