Ms. Margaret Bengzon President and Chief Executive Officer, Guam Healthcare Development Inc – Guam Regional Medical City Opportunities for Health Human Resources in Guam and Micronesia 14 March 2012 Presentation Outline Demand for Healthcare Available Healthcare Human Resources The Guam Regional Medical City Opportunities Presented by GRMC Conclusions Demand for Healthcare Guam’s healthcare spending per capita and as a % of GDP is quite low compared to U.S. and World averages – pointing to room for further growth. Historical and Estimated Healthcare Expenditure (HE) per Payor (in $ millions) 395 256 Health Expenditure / GDP Guam USA World 8.8% 17.4% 9.7% Guam USA 10-year HE CAGR 4.4% 6.8% 9-year GIP CAGR 3.1% 4.0% Source: GHDI and FCCM estimates; US Department of Commerce - Bureau of Economic Analysis; National Health Expenditures Report, 2009; World Bank Report, 2009 Guam’s population growth rate is higher than that of the U.S. and the World average. Guam’s median age exceeds World averages and is rising geometrically. Comparative Population Statistics : Guam, USA, World Population Guam USA Population Growth Rate (%) 1.31% 0.96% Median Age (in years) Total 29.40 36.90 Male 29.00 35.60 Female 29.80 38.20 Source: CIA estimates, CIA World Factbook 2011 World 1.09% 28.40 27.70 29.00 Guam authorities project Population CAGR at 1.18% from 2010 to 2020. The number of persons over 65 is expected to approach 10% of the total population by 2030, from 7% today. Guam’s disease burden is more severe than U.S. averages. Diabetes, heart disease and cancer are particular areas of concern. Top leading causes of death (2007) Heart disease Malignant neoplasms Cerebrovascular disease Diabetes mellitus Suicide Motor vehicle accidents All other accidents and adverse events Fibrosis and cirrhosis of the liver Chronic obstructive pulmonary disease Guam* U.S. 228.4 122.3 50.1 44.0 16.0 16.0 26.2 18.9 23.2 190.9 178.4 42.2 22.5 11.3 14.4 40.0 9.1 40.8 Cancer Incidences and Mortality* 100% 2003-2007 263 264 201 117 100 68 Diabetes incidences 73% 329 *Age-adjusted incidences/deaths per 100,000. The age-adjusted rates are rates that would have existed if the population under study had been distributed by age the same way as in the US population. 1998-2002 394 As of 2009, at least 40,000 people on Guam have diabetes (close to 25% of the population) In the United States, only 8% of the population have diabetes (less than one in ten) Males Females Mortality Males Females Incidence Poor oncology services on Guam may be a factor for the significant increase in mortality rates, even as incidence rates remained steady. Sources: Guam Cancer Facts and Figures 2003-2007 (June 2009), National Vital Statistics Report US Department of Health and Human Services 2007. CDC National Diabetes Fact Sheet 2007. Department of Health and Senior Services – Missouri. Majority of Guam’s population have the capacity to pay for healthcare through third party private and public payors. Estimated Guam Population by Healthcare Coverage (2010) Estimated Breakdown of Guam Health Expenditures by Payor (2010) Medicare 7% Self-Pay 28% Self-Pay 12% Medicaid 17% Medicaid 8% MIP 6% Medicare 12% Tricare 7% MIP 7% Private Insurance Private Insurance 34% 41% Tricare 21% Neighboring Pacific Islands and growing tourism sector present additional demand for healthcare services. Commonwealth of the Northern Mariana Islands Guam Republic of Palau Republic of the Marshall Islands Federated States of Micronesia Country Guam** Commonwealth of the Northern Mariana Islands Federated States of Micronesia Republic of the Marshall Islands Republic of Palau Total9 *Based on World Bank population figures ** Population estimates excludes the impact of the military build-up Sources: Guam Statistical Yearbook 2008, World Bank Guam Visitors *FCCM estimates based on World Bank 2008 population figures Pop. (2009) 178,287 63,112 107,973 61,300 20,397 431,069 1,215,180 Available Health Human Resources Guam has been designated a Medically Underserved Area due to deficiencies in the number of health professionals relative to the population served. Staff Metrics Physicians Physician - Population Ratio Registered Nurses Nurse - Population Ratio Guam 283 16 800 44 Source: Office of Guam Medical Examiners, Kaiser Family Foundation Website, 2010 Data * Population Ratios Per 100,000 Population USA 811,533 27 2,655,020 87 Gaps in specialized care, especially in relation to the Island’s disease burden, have also been observed. Leading Causes of Death Heart Disease Malignant Neoplasms Cerebrovascular Disease Diabetes Mellitus COPD Fibrosis and Cirrhosis of the Liver Age-Adjusted Death Rate* Subspecialists 228.4 1 Cardiologist 122.3 5 Oncologists 50.1 2 Neurologists 44.0 2 Endocrinologists 23.2 1 Pulmonologist 18.9 0 Gastroenterologists / Hepatologists Source: National Vital Statistics Report US Department of Health and Human Services 2007 ; Guam Subspecialists compiled by GHDi. * Per 100,000 Population The Guam Regional Medical City GRMC, the only private hospital on Guam, is scheduled for operation in June 2014, with total project cost estimated at US$ 216 million. Project Summary Location Dededo, Guam Bed Capacity 130 Beds Floor Area 266,785 Square Feet Project Cost US$216 Million Target Date of Operation June 2014 Components of Project Cost (USD MMs) Total Hospital building Equipment Furniture and Fixtures IT Land and Site Preparation Start –up Costs Financing Costs Contingency Total Project Cost 127.9 26.3 5.1 5.5 4.0 13.4 20.8 13.0 216.0 GRMC will be strategically located in the most densely populated area of the island, Dededo, and within reasonable proximity to major tourist areas in Tumon Bay and US military bases. Andersen Air Force Base Close to 70% of the island population live in the Northern part of Guam Guam Regional Medical City Tumon Bay Guam Memorial Hospital Naval Hospital US Naval Station Guam Regional Medical City Guam population density map Number of Households 420-768 249-419 155-248 85-154 39-84 13-38 0-12 Source: Guam Statistical Yearbook 2008 GRMC will be operated by PSI / TMC, a Joint Commission accredited organization with an established track record in healthcare quality, safety and innovation. Operates the largest healthcare network under a single trade name in the Philippines, including a world-class 500-bed tertiary flagship hospital, 3 provincial hospitals and 20 outpatient clinics. Serves some 40,000 inpatients and 1.2 million outpatients every year. Engages 2,700 employees and 1,500 medical staff. Has been accredited and re-accredited by the Joint Commission International, the most prestigious accrediting body of healthcare organizations. In its accreditation surveys, TMC has received perfect scores in key standards on service quality and patient safety. With Centers of Excellence in Wellness, Cancer, Cardiovascular and Regenerative Medicine that are well-aligned with healthcare needs of Guam and the rest of Micronesia. Has had a medical coordination office in Guam since 2008 to support the large and growing number of patients from Micronesia receiving care in its Manila site. GHHDF, a long-time champion of the hospital project, serves as a vital link between the developers and the local community. GHHDF Officers Peter R. Sgro, Jr. J.D. President & Board Chairman Frank Arriola M.S.S.M: Vice-President Frances Taitague-Mantanona M.H.A; Secretary John Onedera CPA; Treasurer GHHDF Board of Directors Peter R. Sgro, Jr. J.D. President & Chairman, International Group, Inc. Katherine Calvo Sgro M.B.A.. EVP & Chairman, Payless Markets, Inc. Ruth Gurusamy R.N., M.N. Administrator, Health Services of the Pacific John Onedera CPA. Partner, Ernst & Young Art Mesa: Veterans’ Advocate, Small Business 2010 Veteran of the Year. Mayor Roke Blas. Mayor, Municipality of Sinajana Richard Lai: Director of the Chinese Chamber of Commerce. Frank Arriola M.S.S.M; CEO of Pacific Rim Brokers, Inc. Mary Torre. President, Guam Hotel & Restaurant Association Hidenobu “George” Takagi. President. Takagi & Associates Larry Lizama M.D. Internal Medicine Kia Rahmani M.D. General, Vascular and Oncologic Surgeon Frances Taitague-Mantanona. Masters in Health Administration Thomas Shieh, M.D. Fellow American College of Obstetricians & Gynecologists John Ray Taitano M.D. MSS FACP Internal Medicine David Silva, EMBA. General Manager, Century Insurance Guam Ernesto V. Espaldon, Jr. President, Sun Foods Int’l dba Lina Leon Guerrero: General Manager of Marianas Physicians Group The Foundation has developed key relationships : Local and federal government agencies Military and veterans’ groups Medical and allied medical organizations Insurance companies Educational institutions Business and community leaders GRMC will augment bed capacity and deliver world-class healthcare services that respond to the specific needs of the Region. Hospital Beds Facilities 380 361 Emergency Surgery Intensive Care Delivery 2 Triage Rooms 4 Major ORs 10 ICUs 6 LDRs 9 Exam Rooms 5 Minor ORs 4 Isolation 4 IMUs 1 Trauma Room 12 PACU/RR 130 43 158 13 NICU 6 Observation Units Services Cardiology Gastroenterology Orthopedics Laboratory Oncology Nephrology Ophthalmology Radiology ENT Pharmacy General Surgery Physical Therapy Anesthesia Emergency Medicine Endocrinology Infectious Disease Pulmunology Pediatrics/ Neonatology Neurology OB-Gynecology Project development and construction will proceed from 2011 to 2014. Hospital operations will commence mid-2014. Project Development 2011 Hospital Build Out Hospital Operation 2012 - 2013 2014 Onwards Opportunities Presented by GRMC Peak employment during construction will number 290. Some 75% of staff will be sourced on-island. Position Office Quality Control Manager Field Quality Control Manager Electrical Engineer Mechanical Engineer Cost Controller Assistant Supervisor Field Foreman MEP Superintendent Finishes Superintendent Administrative Assistant Equipment Operators Laborers Carpenters Concrete Finishers Masons Drywall Hangars Painters Mechanics/Sheet Metal Plumbers Electricians Total Source Guam Other 1 1 1 1 Total Peak 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10 15 15 15 6 30 15 48 25 30 5 5 5 4 10 5 17 10 10 10 20 20 20 10 40 20 65 35 40 218 72 290 1 At full operation, GRMC will employ 58 hospitalists and 396 allied medical and support staff. In addition, GRMC will credential some 250 medical staff across all clinical services. Service Internal Medicine Surgery OB-Gyn Pediatrics Anesthesia Ophthalmology Otolaryngology Radiology Pathology Physical Medicine Emergency Intensive Care Neonatal Intensive Care TOTAL Consultants Hospitalists 90 12 35 6 25 4 70 6 7 3 5 3 5 3 6 6 4 3 6 6 3 250 58 Service Nursing Ancillary Services Administration and Support TOTAL Staff Count 158 134 104 396 “Rural hospitals provide a source of high-tech jobs for young people who might otherwise leave communities heavily dependent upon natural resource-based industries and tourism. Rural hospitals also provide an anchor for other health care jobs, such as physicians and pharmacists that, in the absence of the hospital, may not be available.” Healthy Hospitals. Healthy Communities. The Economic Impact of Wisconsin’s Hospitals, 2008. GRMC will provide an attractive platform for staff to advance personal and professional aims. Research Teach Professional Standing Learn Financial Security Personal Fulfillment Practice GRMC has made provisions for a competitive salary package to attract and retain qualified medical staff. Physician Staffing for GRMC Salary Benchmarking 396,141 GMH Guam US Mainland 324,330 261,960 234,277 130,000 25th Percentile Number of Hospitalists = 58 Number of Credentialed Consultants = 250 160,021 Average 75th Percentile Budget of US$300,000 per hospitalist per year is competitive relative to island and mainland salary levels Sources: Guam Memorial Hospital Staffing Pattern as of May 2011, Medical Group Management Association 2009 Recruitment efforts will be directed at medical and allied medical professionals in Guam, the U.S. mainland and the Philippines. U.S. Professionals Philippine (U.S. Boarded) Professionals Guam Professionals Better income- Access to top quality facilities and services generating Opportunities for potential Robust practice professional capacity development, platform but teaching/mentoring closer to the and research Philippines Estimated number: 1,500 Estimated number: 283 Recent Graduates Established Practice With Guam Ties With Philippine Ties Access to student loan Improved quality of repayment programs life, given challenges and other incentives of practice in the directed at medically mainland U.S. underserved locations Rising costs of living in the mainland U.S. Prospect of practice at home in a world‐class hospital complex Prospect of practice in a U.S. setting but closer to the Philippines Total Graduates (2010): 16,8381 Pacific Islander / Other Minority Races Non-Federal Physicians (2008): 20,263 Sources: Association of American Medical Colleges, American Medical Association,, Guam Board of Medical Examiners, The Medical City, The Economist. In partnership with Regional providers, GRMC will facilitate access to federal incentives to practice in medically-underserved locations, as well as advocate for the institution of parallel programs at the local level. Federal Government Local Government Scholarships Loans Research Grants Loan Repayment Programs Matching of State-Funded Programs Visa Waiver Programs Preferential Reimbursement Rates Tax Credits Locum Tenens GRMC will leverage its existing network of educational institutions, as well as develop linkages with the University of Guam, to provide professional staff with extensive opportunities for capacity building, teaching/mentoring, and research. In conclusion , ”Field of Dreams” ”Anonymous”