Veritas

of Washington, LLC

Statement of Capabilities

February 27, 2016

1. Overview

Introduction
Veritas of Washington, LLC (Veritas), is District of Columbiabased healthcare management,
advisory, and consulting firm. The firm is comprised of principals that have been leading
providers of healthcare management, consulting and strategic advisory services to hospitals,
health systems, skilled nursing facilities and other healthcare entities. The firms leadership team
has longstanding experience with District of Columbia health systems and with the District
government.
The firms seasoned healthcare executives have a proven track record of successful hospital
turnarounds and restructurings, along with management and performance improvement
consulting. Veritas is focused exclusively on health care with a special emphasis on hospitals and
health systems in highly competitive urban markets.
As a minorityowned local company, the firms owner and leading principals live and work in
the District and understand the Districts unique needs and healthcare environment. A key
principal of the firm has experience in working with all aspects of District government and has a
track record in working successfully with key government officials.
Here are just a few examples of experiences that reflect the firms capabilities:

One of the principals served as Chairman and CEO of Health Risk Management,
comprised of a Medicaid managed care program in three states.
One of the principals has experience in mergers and acquisitions and in the creation
of affiliation agreements with hospitals.
Several of the principals have worked on the study for DC General Hospital regarding
organizational structure and operations.
One of the principals consulted on the reorganization of Hospital for Sick Children in
Washington, DC and the Psychiatric Institute of Washington.

Capabilities
The comprehensiveness of the firms capabilities is grounded in the qualifications and
extensive experience of its key personnel. In addition to the senior executives, the firms
consultants are also seasoned professionals with an average of over 20 years of health care and
financial experience covering a full spectrum of management, consulting, operations, strategic
advisory, business planning, and restructuring services. Veritas has the breadth of resources and
the depth of knowledge and expertise to assist our clients in a variety of special studies and
analyses.
The firms consultants have been very successful with a solutionsoriented leadership style
that has transformed, revitalized and restructured troubled organizations with significant

financial and operational problems. Our consultants experience covers a broad range of health
related organizations including small and midsized urban hospitals, multihospital systems, rural
facilities, thirdparty administrators and large Medicaid HMOs, longterm care and other non
acute facilities, and multispecialty physician group practices.
Once the executive team is in place and any initial crises at the organization have been
brought under control, the firm is able to provide an array of additional services. We have a
diverse team of managementlevel executives with expertise in capital structure, risk
management, strategic and operational program alignment, quality of care improvement, human
resources, and much more. The firm assesses financial and operational stress factors and
strategic shortcomings, such as issues with debt structure, cash management, revenue
generation, and quality of care. The firms full capabilities encompass the entire spectrum of
executive management and consulting services, including, but not limited to, the following:

Executive leadership and management

DaytoDay Operations Management
Financial Restructuring
Stabilization and Turnaround Planning
Organizational and Financial Analysis
Financial Management and Business Operations
o Install accountabilitybased command and control environment
o Financial analysis, planning, and reporting
o Serviceline profitability analysis
o Revenue cycle restructuring and review of managed care contracts
o Capital finance, including debt/bond capacity analysis
Expansions, Mergers and Acquisitions
o New facility analysis, planning, and advice
o Join venture analysis, negotiation and planning
o Mergers and acquisition analysis
o Strategic partnerships
Strategic Planning
o Market analysis to characterize and identify service opportunities
o Need and demand analysis
o Strategic business plan development for organizations and for new service lines
Complex Analysis
o Simulation Modeling and Forecasting
o Empirical Research and Data Analysis
o Dashboard/Scorecard Facility Reports
Clinical Operations/Efficiency
Supply chain development and management
Quality of Care
Regulatory, Legal & Payor Compliance
Labor/Productivity including Staffing Systems and Productivity Tools
Risk Management
Governmental Relations

Key Advantages
The firms project team is uniquely positioned and qualified to provide daytoday operations
management. Key advantages of Veritas include the following:

Experienced healthcare executives of a quality and expertise that cannot be attracted to

work at United Medical Center (UMC) under the current conditions. We can immediately
apply our skills in leadership, operational effectiveness and efficiency, and revenue cycle
management. We would strengthen the efficiency and effectiveness of the UMC
management systems.
Specialize in managing financially distressed hospitals and crisis management situations
Local firm: founded and based in the District
o Understand the Districts unique environment and needs
o Understand the importance to UMC of governmental relations (e.g., working
cooperatively with District Government) and external constituencies.
o Two of the principals are native Washingtonians.
The engagement leader has experience in working with all aspects of the District
government and has a track record in working with key government officials.
Experienced with expansions (including new construction)

2. Qualifications

Overview
Veritas is focused exclusively on health care, with a special emphasis on hospitals and health
systems in competitive urban markets. Many of the firms principals each have in excess of 20
years experience in areas including health care operations, executive and financial management,
public and private financings, medical staff relations, human resources and strategic planning.
Members of the team have worked together providing individualized management and
consulting services to hospitals and health care systems across the United States and in multiple
international settings. Members of the team have worked together providing individualized
management, restructuring and consulting services to over 25 hospitals and health care systems
in Washington, D.C., Maryland, Virginia, Pennsylvania, New Jersey, West Virginia, Connecticut,
New York and Georgia.
The firms team of management professionals reflects a broad range of ethnic and cultural
backgrounds and are able to understand the unique needs of organizations in multicultural
environments. Because of this, the firm understands the community and the importance of the
local health care delivery system; these have been critical factors in the successes of the firms
principals in these environments.
The Veritas team is familiar with the District of Columbia and understands the issues related
to the socioeconomic, racial and ethnic diversity in the District and their impact on the healthcare
system. The location of UMCs facilities and the types of services provided have attracted a
disproportionate share of patients with low reimbursement. Migration of patients to
competitors and to surrounding jurisdictions is significant. Many physicians have elected to
practice in other hospitals where payment for services is more secure and where facilities and
equipment are more updated. Veritas principals have successfully addressed similar issues in its
engagements with other health organizations in markets much like that of the District.

A few of the highlights of the firms personnel experience and qualifications include the
following:

The core team has worked together for over 15 years. Member of our executive team have
managed hospitals as small as 25 beds and up to an 800bed system. Members of our
team have managed over 40 hospitals over the last 25 years.
Our specialty is small to midsized urban, financially distressed hospitals. Three of the
firms leading principals jointly authored an article in a leading peerreviewed health care
journal about financially distressed hospitals.
Members of the firm have experience in dealing with CMS violations and compliance
issues.
A senior member of the team holds a PhD in healthcare finance and coauthored the
leading textbook on healthcare financial management. His expertise includes detailed
analysis of the revenue cycle and internal control.
Another senior member also holds a doctorate and has over 30 years of experience in
health care organizations, including evaluating, designing, improving, and measuring
operational and clinical processes and systems in hospitals.

3. Relevant Local Experience

The firms principals have extensive experience working with healthcare organizations of
almost every size, complexity, ownership and structure. The firm specializes, however, in small
and midsized urban hospitals. One characteristic that further separates Veritas from the
competition is the firms principals understanding of and experience with Washington, D.C.,
healthcare environment. Certain key members of Veritas have been involved in the following
local projects:

District of Columbia General Hospital
Washington, DC
This 420bed urban public hospital experienced a financial hemorrhaging of nearly $100
million per year consisting of $35 million annual loss from operations and another $59
million in subsidies. Several of the firms principals provided a comprehensive assessment
and fiscal recovery plan for one of its hospitals. We also conducted an intense operational
assessment covering revenue enhancement opportunities; labor and productivity; non
labor expenses; business office processes and performance; DRG coding efficiencies; clinical
case mix and length of stay studies; capital expenditure processes; contract service
evaluations and program review. We also examined the corporate structure of the Hospital.

Hospital for Sick Children

Washington, DC
This 130bed specialty hospital had an incomplete management team; open Board of
Trustees positions; lack of Board leadership, direction and accountability; high dependency
on Medicaid and very narrow market niche. Several of the firms principals were engaged by
the Hospital to conduct a strategic and organizational assessment of its preparedness for
the future. We provided the Hospital with a comprehensive evaluation of the organizations
ability to accomplish both its stated mission and to reach its vision outlined in its strategic
plan. We focused on the role, responsibilities and accountabilities of the Board of Trustees

and the Hospitals management team, as well as the consistency and appropriateness of the
Hospitals policies, procedures and practices. We facilitated a Board of Trustees retreat
based on the organizational assessment and the 21point Action Plan for the Future.