The document discusses using cash management best practices to optimize liquidity decision making. It provides an overview of Mercy Health, a large healthcare system, and its treasury operations. Mercy Health has grown significantly through acquisitions and aims to centralize its banking infrastructure. The document outlines a value creation hierarchy for treasury, emphasizing liquidity optimization, cash forecasting, account visibility, and security/controls. It also lists additional resources on treasury management systems and the treasury mandate.

1. Kyriba
Webinar
Using Cash Management Best Practices to
Optimize Liquidity Decision Making
November 11, 2013
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PRIVILEGED & CONFIDENTIAL.
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2. Speaker Panel
Steve Walden
•
Manager, Treasury Operations, Mercy
•
Steve has worked in Treasury for 22 years for various St. Louis companies in different
industries – public, private, not-for-profit, healthcare, investments and manufacturing. He
has been with Mercy since 2004 and is responsible for all cash management, banking,
and basically anything that touches Mercy’s $8-10 billion of annual cashflows.
Phil Mattes
•
Treasury Strategist, Kyriba
•
Phil has over 15 years of consulting and corporate experience in treasury. He began his
treasury career as a Treasury Analyst at the New York City headquarters of the global
oilfield services firm, Schlumberger. He then spent more than 8 years with the corporate
treasury consulting practice of PricewaterhouseCoopers. Feeling the pull of the corporate
world again, he joined CareerBuilder LLC in Chicago as the Director of Treasury to
establish their corporate treasury function. Mostly recently, Phil was the Global Director
of Treasury for Groupon Inc.
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3. Value Creation Hierarchy
Liquidity Optimization
Cash Forecasting
Account Visibility
Banking Infrastructure
Security and Control
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• Maintain database of signer and
bank account information
• Rationalize signers and directors
• Use bank products that enhance
security (positive pay, etc.)
• Centralize security administration
• System enforced delegation of
authority
• Policy documents clearly outline
roles and responsibilities
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4. Value Creation Hierarchy
Liquidity Optimization
• Rationalize number of banking
partners
Cash Forecasting
• Reduce number of bank
accounts
Account Visibility
• Optimize services
• Automate analysis of fees
Banking Infrastructure
• Conduct bank reviews on a
periodic basis
Security and Controls
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5. Value Creation Hierarchy
Liquidity Optimization
Cash Forecasting
• Automate connectivity to
banks for electronic statements
• Leverage abilities of a treasury
management system
To consolidate information
Account Visibility
Banking Infrastructure
Security and Controls
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To assign reporting
categories to transactions
• Make it easy for executives to
get the information they want
(dashboards, executive
summaries, etc.)
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6. Value Creation Hierarchy
• Executive support
Liquidity Optimization
Cash Forecasting
Global visibility
Banking Infrastructure
Security and Controls
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• Collaboration with information
sources
• Communication of roles,
responsibilities and process
• Information
systems/integration to support
the process
• Measurement of accuracy and
feedback to sources.
• Incentives for improvement
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7. Value Creation Hierarchy
Liquidity Optimization
• More strategic investment of
cash
Cash Forecasting
• Repayment of debt
• Maximization of earnings credit
Account Visibility
• Use of supply chain discounts
Banking Infrastructure
• Overall improved ability to plan
future uses of cash.
Security and Controls
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8. Mercy Health Treasury
Overview
Steve Walden – Manager,
Treasury Operations

9. Mercy Health Overview
• Catherine McAuley – Mercy Foundress - Dublin, Ireland
• Built a house to shelter and educate young women – run by lay people at first
• September 24, 1827, Foundress Day - the House of Mercy opened its doors.
• Sisters of Mercy order was born December 22, 1831
• Sisters of Mercy Health System formed 1986
• Rebranded as Mercy Health in 2012 – name celebrates Sisters of Mercy
One Mercy - What has Always been Our Only Mission is Now Our Only Name
Sisters pass torch to Lay People - Advanced Formation/Mercy Associates
28 hospitals, 1400 doctors, 38,000 CW, 600+ clinics, Outreach, 6 states, $4B
St. Louis – LOTS of Healthcare - SSM, BJC, Ascension, Sisters of Mercy
How does Treasury help? Inv Income, cost savings, more NI than Operations

10. Follow the Money – it’s ALL about CASH –
95% of Treasury relates to Collections
• Forecasting (Canary in the Mine)
o One year rolling Excel forecast – access to capital and budgeting systems
o Historical – top level only
o Current TWS not helpful for forecasting – new TWS in 2013
• Community Master Plan
o $4 billion in growth over next 10 years
o Cashflow from Operations, Debt Offerings, Philanthropy, Reduce Op Costs
o Each community has a detailed Master Plan for the right growth for their area
• Growth and Acquisitions
o Before - Doctors broke away, started own networks, built hospitals (Ft. Smith)
o Now, they can’t afford it and are coming back – less money/fewer headaches
o Big emphasis on Physician integration, buying practices, leasing hospitals
o Single hospitals, small systems, gov’t owned can’t afford to exist on their own
o Need to grow to spread infrastructure/ admin costs across larger # of entities

12. Differences and Best
Practices in Healthcare
• Imagine if Walmart allowed you to buy and walk out the door with a 72” flat screen TV
without requiring a payment OR you knowing how much it would cost? That’s Healthcare!!
• Patients owe more each year – high deductibles/copays, HRA/HSA plans
• BIG emphasis on POS collections - My Mercy, Kiosks, Mobile, Bedside, Patient Loans
• ACA - Affordable Care Act – NOBODY knows the financial impact on Healthcare providers.
• ACA will add 45MM Insured. States vote whether to expand Medicare (MO is a NO)
•
•
•
•
•
Best Practices in Healthcare Treasury – centralize and minimize Bank accounts and Lockboxes
ONE pool of cash for all of Mercy – reduce from 100 entities/300 accounts to 10 to 1.
Treasury Workstations – automate manual processes, one database of bank info.
One Mercy Finance – automation helps centralize Finance and Bank account recon
Virtual Business Office – one patient statement for all, one bank account, one lockbox

13. Additional Resources
The Treasury Mandate: A Strategic Partner for
Unlocking Business Value white paper
http://goo.gl/cjlWqk
Treasury Management Systems and SCF white paper
http://goo.gl/YceL3P
Kyriba Module Overview fact sheet
http://goo.gl/Kx6wpn
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PRIVILEGED & CONFIDENTIAL.
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14. Contact Kyriba
kyriba.com/blog
twitter.com/kyribacorp
linkedin.com/company/kyriba-corporation
facebook.com/kyribacorp
slideshare.com/kyriba
youtube.com/kyribacorp
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