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Darrell Early
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Alan Germany <agermany@teamhcca.com>
Friday, August 04, 2017 1:20 PM
Skylar Crane
Timothy Ong; Mark El-Hinn
RE: Celtic Commercial Finance- HFMA (Equipment List)

Attaching nts:

imageOOLgif; image002.png; image003.png; image004.png; image005.png

Skylar:
Last O ctober TRMC converted to th e C em er Inform ation System . On th e in p atien t side, w e had Siem ens MS4
previously and NextGen on th e o u tp a tie n t side. After th e conversion, th e re w as a 4 m onth gap until claims
sta rte d being released again. W e had engaged an experienced project m anager to o v ersee th e en tire project,
as well as an experienced R evenue Cycle project m anager. I had even brought on a GO a y e a r or so prior to
th e conversion w ho had m ost recently w orked a t C em er and previously a t Siem ens. W ith all o f th a t said, I did
n o t folio n C erner's advice to have a working capital line in place at th e tim e o f th e conversion. Our cash
collections from p a tie n t accounting have declined 24% post-conversion as com pared to pre-conversion. That
e q u a te s to a cum ulative to ta l o f $9M M . Adding on to p o f th a t, we incurred a b o u t $9.4 MM in conversion
costs (in :iuding $3.3 MM fo r th e actual C em er license).
As a sep; irate m atte r, in O ctober 2014, th e G eneral Obligation bond proceeds w ere ex h au sted which has
caused riie to have to fund th e continuing patien t Tow er construction o u t of hospital op eratio n s. That has
to ta le d a b o u t $8 MM cum ulative as o f th is point.
We do n o t plan to use th e funds for acquisitions or fu tu re sites. The anticipated new funding will go to w ard s
replenishing cash reserves d u e to th e $26.4 MM expenditures outlined above. W e also m ay use a portion of
th e proceeds to retire th e existing rev en u e bonds, which currently to ta l $13.6 MM.
Let m e know if you would like fu rth er explanation or rationale.
Thanks, Alan
From: Skylar Crane [SCrane@ Celticfinance.com ]
Sent: Friday, August 04, 2017 10:41 AM
To: Alan G erm any
Cc: Timothy Ong; M ark El-Hinn
Subject:  E ; Celtic Commercial Finance- HFMA (Equipm ent List)
Alan,
Thanks a^ain

fo r

your tim e yesterday going through th e detaiis/tim ing.

Per your last convo with Mark, our guys w an ted it in your ow n w ords why you are going th ro u g h this
reim b u rsem en t/fu n d in g process now.
We understand you sp e n t a lot on th e recen t EHR/other projects, but it helps us to u n d e rsta n d th e m otivation
for raising cash.
For exam ple, are going to use it for acquisitions, fu tu re sites, etc.?
Thanks in advance for your explanation.
l