Video: Virtual Town Hall from Sept. 18
Last Friday, Michigan Medicine leaders hosted a virtual Town Hall to provide updates on COVID-19 clinical trials and operational preparedness for the fall.
If you missed it, you can view the video above.
Additional questions from the meeting can be found below.
Q. Does the UMHS Board have decision making authority in finances or are they advisory? Who makes the decisions?
A. The board is advisory to the U-M Board of Regents.
Q. I know the president and regents will need to approve any proposals, but what proposals for financial relief are your priorities (e.g., retirement funds; CME)?
A. Economic recovery decisions were made early during the pandemic experience with the knowledge that we were yet to learn the depth and duration of the downturn in patient activity. During that time, we planned to revisit these decisions based on actual experience. It is early and there is still uncertainty about how patient activity will be influenced as we enter into flu season and we still have the potential for a COVID-19 resurgence. Leadership is exploring a reinstatement of certain changes that we will be prepared to discuss in more detail within the next month or two.
Q. Can you provide greater detail regarding the improved financial situation of UMHS?
A. The response will be broken down in to two separate reporting periods – fiscal 2020 and fiscal 2021 through August. For fiscal 2020, original operating margin projections were a loss of $130 to $230 million before government support. The actual result was at the lower end of the range with a reported loss of $139 million before governmental support. Actual governmental support of $118 million brought the loss down to $21 million. This represents a $196 million swing compared to the budgeted $175 million margin for 2020.
For the two months ending Aug. 31, 2020 we reported a positive operating margin of $49 million. This result is on track to achieve pre-pandemic expectations for fiscal 2021 (twelve months ending June 30, 2021). Achieving and sustaining this level of operating margin has and will enable leadership to address reinstatement of certain of the reductions made this past spring.