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FACT SHEET as of 10-02-17

AUGUSTA HEALTH COST PERFORMANCE STATISTICS

1. According to the VHI, Augusta Health has the lowest cost per Adjusted Admissions compared to the
other regional providers. Below is the ranking by quartile.

Quartile Health Systems


1st Quartile < $8045 No local Hospitals
2nd Quartile ($8045-$8936) Augusta Health = $8,804
3rd Quartile ($8936-$10,018) Sentara (MJH & RMH ave) = $9311
4th Quartile (> $10,018) Carilion Medical Center = $12,681
UVA = $15,693
2. According to CMS, Augusta Health has a lower Medicare spending ratio per beneficiary compared to
regional hospitals.

Hospitals Ratio
UVA 1.03
Carilion Roanoke .99
National Average .99
State Average .95
Sentara RMH .94
Sentara MJH .93
Augusta Health .91

3. According to CMS, Augusta Health has the 4 th lowest cost Medicare Shared Savings Program (MSSP)
ACO in the country of over 450 ACOs

4. Augusta Health has reduced annual operating expenses by $40M over the last 6 years through
process improvements, productivity enhancements, supply management, monitoring service-line
performance, and other expense reductions.

5. Augusta Healths continual A1 rating from Moodys requires disciplined financial stewardship.
NATIONAL HEALTH CARE TRENDS

1. Premiums are expected to jump nearly 60% in VAs 2018 Individual Market. The increase is the
highest ever according to David Shea, health Actuary with Virginias Bureau of Insurance. This is
higher than last years ACA market increase of 24.8%.

2. According to sources at the VH&HA, as of July 2017, Prescription Drugs continue to have the highest
annual increase in price changes compared to other components of national Health Care
Expenditures.
Prescription Drug 4.2%
DME 2.3%
Nursing Home 2.1%
Dental Services 1.8%
Other Prof Srvs 1.6%
Hospital Care 1.5%
Phys & Clinical Care 0%

3. Total Federal ACA Hospital Reimbursement reductions will increase from $120M in FFY 2017 to
$500M in FFY 2025, passing an increasing greater portion of the cost of care to hospitals and
physicians.

4. VA Region #9, where Augusta Health is located, has a higher uninsured population rate of 13.3%.
than the VA state uninsured rate which is 8.7%, and the US uninsured rate which is 8.6%.

5. Almost 750,000 (nonelderly) Virginian Adults lack health insurance coverage. 60% are between 100%
and 401+% of the Federal Poverty Level. Its not just the unemployed without Healthcare.