Boston Scientific Corporation · NYSE:BSX

Boston Scientific — pres VSFellows Ouriel 2005UCLA 01 us

14 slides from Boston Scientific's investor presentation, 2005

  1. Slide 1: If I Knew Then What I Know Now… Asking the Right Questions

    IfIf II Knew Knew Then Then What What II Know Know Now… Now… Asking Asking the the Right Right Questions Questions Kenneth Ouriel, MD The Cleveland Clinic Foundation All financial projections are for demonstration purposes only. Actual financial numbers will vary by practice, institution, specialty

  2. Slide 2: 20 yrs ago… What Was Vascular Surgery Like?

    20 20 yrs yrs ago… ago… What What Was Was Vascular Vascular Surgery Surgery Like? Like? „ Academics „ Private practice The Cleveland Clinic Foundation

  3. Slide 3: Physician Payment

    Physician Physician Payment Payment „ Payors „ Amount „ Rules and Audits The Cleveland Clinic Foundation

  4. Slide 4: Payment changes over decades

    Payment Payment changes changes over over 22 decades: decades: $3,500 1987 $3,000 2005 $2,500 Inflation-Corrected $2,000 $1,500 $1,000 $500 $0 AAA Carotid Fem-Tib Endarterectomy The Cleveland Clinic Foundation All financial projections are for demonstration purposes only. Actual financial numbers wi

  5. Slide 5: How have surgeons survived?

    How How have have surgeons surgeons survived? survived? „ Vascular non-invasive lab „ Increased volume, addition of endovascular procedures „ Improved efficiencies The Cleveland Clinic Foundation

  6. Slide 6: How do Hospital Finances Work?

    How How do do Hospital Hospital Finances Finances Work? Work? $9,000 $8,000 $7,000 $6,000 Net Revenue $5,000 Direct Expenses Contrib Margin $4,000 Indirect Expenses $3,000 Net Income $2,000 $1,000 $0 Carotid Endarterectomy The Cleveland Clinic Foundation All financial projections are for demonstrati

  7. Slide 7: Know the Hospital's Numbers!

    Know Know the the Hospital’s Hospital’s Numbers! Numbers! $40,000 $30,000 Net Revenue $20,000 Direct Expenses Contrib Margin $10,000 $0 Cardiac Medicine Vasc Vasc Surgery Open Endo The Cleveland Clinic Foundation All financial projections are for demonstration purposes only. Actual financial numbers

  8. Slide 8: What Practice Model Is Best For Me?

    What What Practice Practice Model Model Is Is Best Best For For Me? Me? „ Private Practice „ Group „ Solo „ Academics „ Competitive Model „ True Group Practice The Cleveland Clinic Foundation

  9. Slide 9: How should I structure my deal?

    How How should should II structure structure my my deal? deal? „ Salary model „ With or without a bonus „ Productivity model „ With or without a base „ Benefits- “Salary” is not “Compensation” The Cleveland Clinic Foundation

  10. Slide 10: Setting up an office

    Setting Setting up up an an office: office: „ Front-desk people „ Billing „ Nursing assistants „ Let’s look at the numbers… The Cleveland Clinic Foundation

  11. Slide 11: Example 1: Salary + Bonus

    Example Example 1: 1: Salary Salary ++ Bonus Bonus „ Base pay $150k/yr „ Incentive bonus, based on cases „ <150 cases- Zero „ 150-200 cases- $25k „ 200-250 cases- $50k „ 250-300 cases- $75k „ >300 cases- $100k „ But, what is the best metric? „ Cases, Revenue, “Profit”, RVUs, Academics The Cleveland

  12. Slide 12: Example 2: Pure Productivity

    Example Example 2: 2: Pure Pure Productivity Productivity „ No base salary „ Metric to base compensation- „ Net Revenue „ Contribution Margin „ Net income „ Surgeon takes home: „ 40% of Net Revenue „ 60% of Contribution Margin „ 95% of Net Income The Cleveland Clinic Foundation All financial project

  13. Slide 13: Challenges for the next decades

    Challenges Challenges for for the the next next 22 decades: decades: „ Malpractice „ Diminishing payment for procedures „ Changing technology The Cleveland Clinic Foundation

  14. Slide 14: Bottom Line: Be Prepared for the Future

    Bottom Bottom Line: Line: Be Be Prepared Prepared for for the the Future; Future; Control Control It, It, Don’t Don’t Let Let ItIt Control Control You! You! The Cleveland Clinic Foundation

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