best practices in cash mgmt review final

© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 11November 11, 2013

Kyriba Webinar

Using Cash Management Best Practices to Optimize Liquidity Decision Making

© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 2

• 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.

Speaker Panel


Security and Control

Banking Infrastructure

Account Visibility

Cash Forecasting

Value Creation Hierarchy

• 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

Liquidity Optimization


• Rationalize number of banking partners

• Reduce number of bank accounts

• Optimize services

• Automate analysis of fees

• Conduct bank reviews on a periodic basis

Security and Controls


Account Visibility

Cash Forecasting






Account Visibility

Cash Forecasting

• Automate connectivity to banks for electronic statements

• Leverage abilities of a treasury management system

To consolidate information

To assign reporting categories to transactions

• Make it easy for executives to get the information they want (dashboards, executive summaries, etc.)






Global visibility

Cash Forecasting

• Executive support

• 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






Account Visibility

Cash Forecasting

Liquidity Optimization • More strategic investment of cash

• Repayment of debt

• Maximization of earnings credit

• Use of supply chain discounts

• Overall improved ability to plan future uses of cash.


Mercy Health Treasury OverviewSteve Walden – Manager, Treasury Operations

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

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 systemso Historical – top level onlyo Current TWS not helpful for forecasting – new TWS in 2013

• Community Master Plano $4 billion in growth over next 10 yearso Cashflow from Operations, Debt Offerings, Philanthropy, Reduce Op Costso 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 headacheso Big emphasis on Physician integration, buying practices, leasing hospitalso 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

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


Additional Resources

Kyriba Module Overview fact sheet http://goo.gl/Kx6wpn

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


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