Strategic and Financial Planning Process

The Planning Team began the strategic and financial planning effort by analyzing the current revenue structure of MCLNO and identifying opportunities for improvement. The team was given a variety of planning objectives around which to build the financial model; they are as follows:

• Support the replacement of University and Charity hospitals
• Maintain uncompensated care and teaching roles at current levels
• Avoid extensive added state funding
• Allow MCLNO to operate on an enterprise basis
• Do not require unrealistic assumptions
Support the gradual rationalization of the delivery system

A financial model was developed to test various operating models to seek the best balance between mission fulfillment, operating results, risk and outside support requirements, as well as other issues. The "Shreveport Model" served as the inspiration for the new facility, serving both paying and indigent patients and enhancing the patient care mission while improving the education base. A financial plan was specified that could support this preferred operating configuration.