IBJNews

2010 CFO OF THE YEAR: Brian D. Morris

Back to TopCommentsE-mailPrintBookmark and Share

Top Honoree, Private Companies (revenue $100 million or less)

Few executives had a busier 2010 than Brian D. Morris, CFO of St. Vincent Medical Group Inc. The multi-specialty company he helps oversee serves as a model for physician-hospital integration, employing 145 physicians and 700 associates at eight major central Indiana practice sites, with another 20 outreach facilities and clinics around the state.



But here’s the kicker. SVMG, created by integrating Care Group LLC and St. Vincent Health into one unit, didn’t even officially exist until July 1, 2010. “The transaction involved building a consensus among 140 private physicians,” Morris said. As if that job—tantamount to herding cats—wasn’t daunting enough, there was also a long list of other hoops to jump through, including (but by no means confined to) transitioning to new payroll and benefit plans; preparing a new company budget; building a new revenue database; and making appropriate banking arrangements.

“Because initial discussions with St. Vincent Health did not begin until September of 2009, it was quite an achievement from both sides to consummate a deal of this magnitude in a little over nine months,” he said.

morris-factboxBesides possessing a gift for understatement, Morris also brings a great deal of talent and commitment to his position. Given the economic climate, he needs them. Managing both SVMG and one of its precursor entities, Care Group, he weathered both the economic downturn and the uncertainties surrounding health care regulation without laying off a single employee while growing revenue and patient volume.

Morris is used to operating in such a less-than-benign environment. It’s the nature of the health care industry these days. “Because so much of our revenue is derived from government programs, we are inextricably tied to annual legislation that comes out of Washington,” he said. “For example, because of congressional delays in recent years, I have not been able to present final annual budgets to our board before the year begins because I’m waiting for Congress to determine how we’re going to get paid for that year.”

There’s plenty of potential for things to get worse—or rather, more complicated and challenging. Morris says that the third-party payer pool has radically consolidated in recent years, creating a small group of ever-more-powerful entities that are increasingly stingy about what they’ll offer for services. That, combined with government pressure to reduce payments, creates a “unique” industry environment in which Morris must cover his inflationary expenses (rent, salaries, supplies, and pretty much everything else) using a decidedly deflationary revenue stream.

Morris expects more of the same—in the form of additional cuts to physician reimbursement by the Medicare system—in 2011. But he sees a silver lining for his new entity, because physicians and medical groups looking for economies of scale and access to capital may gravitate to SVMG.

The new health care reform legislation’s desire to integrate physicians with hospitals and form accountable care organizations could have a similar effect. “For these reasons, I predict that we will grow through the addition of new physicians and groups in various specialties,” Morris said. “Our capital appetite will determine the extent of our growth.”

Though he doesn’t predict that 2011 will, in general, offer much to write home about (low inflation, a slight drop in unemployment, near-zero interest rates, a GDP of 2 percent), he thinks his firm’s solid financial practices will see it through. “When we have historically been challenged from a top-line revenue approach, we have looked at creative equity positions for our company and attempted to diversify our revenue stream by adding new lines of business,” Morris said.

If his past record on this front is any gauge, then growth is on the way. During his 12 years with Care Group and SVMG he’s contributed to the planning and implementation of several new ventures, including the Indiana Heart Institute, Gateway Electronic Medical Management Systems and the St. Vincent Heart Center of Indiana.

It was the Heart Center, a joint venture between the Care Group and St. Vincent Health, and other combined projects that provided the genesis for the formation of SVMG. “Post-transaction, we also successfully produced a set of financial statements within five days after our first month-end for the new entity,” Morris said. “The successful management of this transaction occurred while we were still managing the former company during the first half of the year.”•
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

  2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

  3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

  4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

  5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

ADVERTISEMENT