On behalf of the three partner hospitals, Western Maryland Regional Medical Center

Attachment B – ROI by Strategy for CY 2016-2019; including All 4 Years Combined

Strategy 1 ROI: Behavioral Health (BH)

	CY 2016, Year 1	CY 2016, Year 2	CY 2016, Year 3	CY 2016, Year 4	Years 1 - 4 Combined
A. Number of Patients	7,223	7,223	7,223	7,223	7,223
B. Number of Medicare and Dual Eligible	798	798	798	798	798
C. Annual Intervention Cost	$ 1,916,216	$ 2,201,379	$ 2,147,449	$ 2,147,449	$ 8,412,494
D. Annual Intervention Cost/Patient	$ 265	$ 304	$ 297	$ 297	$ 1,164
E. Annual Intervention Cost (B x D) For Medicare and Dual Eligible Patients	$ 211,704	$ 243,209	$ 237,251	$ 237,251	$ 929,415
F. Annual Charges (Baseline)	$ 28,470,478	$ 28,470,478	$ 28,470,478	$ 28,470,478	$ 113,881,912
G. Annual Charge Savings % Target	9%	12%	12%	12%	11%
H. Annual Gross Charge Savings (F x G)	$ 2,562,343	$ 3,416,457	$ 3,416,457	$ 3,416,457	$ 12,811,715
I. ROI: Gross Charge Savings Per Intervention Cost Invested (H / C)	$ 1.34	$ 1.55	$ 1.59	$ 1.59	$ 1.52
J. Variable Savings %	30%	40%	40%	40%	38%
K. Variable Savings (H x J)	$ 768,702	$ 1,366,582	$ 1,366,582	$ 1,366,582.	$ 4,868,451

Strategy 2 ROI: Complex Care Management (CCM)

	CY 2016, Year 1	CY 2016, Year 2	CY 2016, Year 3	CY 2016, Year 4	Years 1 - 4 Combined
A. Number of Patients	1,153	1,153	1,153	1,153	1,153
B. Number of Medicare and Dual Eligible	907	907	907	907	907
C. Annual Intervention Cost	$ 3,702,624	$ 4,312,274	$ 4,201,754	$ 4,201,754	$ 16,418,409
D. Annual Intervention Cost/Patient	$ 3,211	$ 3,740	$ 3,644	$ 3,644	$ 14,239
E. Annual Intervention Cost (B x D) For Medicare and Dual Eligible Patients	$ 2,912,645	$ 3,392,223	$ 3,305,283	$ 3,305,283	$ 12,915,435
F. Annual Charges (Baseline)	$ 52,500,880	$ 52,500,880	$ 52,500,880	$ 52,500,880	$ 210,003,520
G. Annual Charge Savings % Target	13%	18%	21%	21%	18%
H. Annual Gross Charge Savings (F x G)	$ 6,825,114	$ 9,450,158	$ 11,025,184	$ 11,025,184	$ 38,325,642
I. ROI: Gross Charge Savings Per Intervention Cost Invested (H / C)	$ 1.84	$ 2.19	$ 2.62	$ 2.62	$ 2.33
J. Variable Savings %	30%	40%	40%	40%	38%
K. Variable Savings (H x J)	$ 2,047,534	$ 3,780,063	$ 4,410,073	$ 4,410,073	$ 14,647,745