UMHS reports strong financial results, growth
The University of Michigan Health System reported positive fiscal year-end results today, with an anticipated 4.2 percent ($129 million) operating margin on budgeted operating revenues of $3.1 billion for the U-M Hospitals, Health Centers, and Medical Group.
This financial performance helps position the university’s clinical enterprise for continued investment in support of the Health System’s goals to advance patient care, education and research.
David Spahlinger, M.D., presented the positive projection of year-end results for fiscal 2016 along with the fiscal 2017 plan today to the U-M Board of Regents during its monthly meeting. Strong patient volume in both clinics and hospitals, along with improved patient access contributed to the strong financial performance, says Spahlinger, who is president of UM Hospitals, Health Centers and the Medical Group.
“We also credit high levels of engagement of physician faculty, nurses and support staff across all of UMHS’ clinical programs and care locations to our continuing success. The teamwork of our expert, dedicated staff makes the difference,” says Spahlinger.
Spahlinger cited several capacity projects that have improved patient access in fiscal year 2016, including in the medical short stay unit, the emergency critical care center, an ambulatory diagnostic treatment unit and new specialty imaging capacity.
Also today, the Regents approved a budget that sets a higher financial performance target for the fiscal year that begins July 1st.The fiscal 2017 plan aims for a 4.3 percent operating margin on revenues of $3.2 billion, based on further increases in patient activity and effective management to reduce the rate of expense growth.
UMHS has embarked on additional projects to increase patient access, including the planned opening of four new operating rooms in University Hospital, a new health center in west Ann Arbor set to open in fall 2017 and another health center in Brighton set to open in 2018.
“We are in a good position to meet our operating and financial goals for 2017, aligned with our long-term plan to continuously improve the financial strength of our clinical enterprise so we can invest in our missions of patient care, education and research,” says Spahlinger.
UMHS Chief Financial Officer Paul Castillo says UMHS leaders are continuing to improve the quality and safety of care while reducing costs and improving patient experience.
“We can be very proud of achieving our financial target. We plan to continue to focus on adding value while improving operational efficiencies in the coming year,” Castillo says. “We are confident that we are prepared to navigate the pressures facing our industry, so that we can meet or exceed our projections.