June 13, 2003
FY 2003 second-quarter results
A status report of hospital performance
Financial overview: The hospital's year-to-date operating gain was $8.8 million below the budget target at $18.4 million. This represented a 2.4 percent operating margin. The hospital saw a deterioration of Net Patient Service Revenue compared to budget in the second quarter, particularly in January and February. Expenses ran 1.0 percent over budget, which was not consistent with declines in revenue. Personnel and outside services continue to be the largest expense overages. Indirect research revenue continued to reflect strong growth in research activity. The $12.7 million year-to-date net gain lagged behind budget by $11.0 million because of operating and investment performance.
Because of the continuation of existing revenue and volume hits, as well as new government revenue cuts and expense additions, the forecast for FY 2003 projects a $16.4 million gap against the budget. Performance improvement plans are being made in three areas — increasing volume through LOS management; examining expense categories and areas that are over budget; and implementing revenue and expense improvement initiatives.
Admissions fell short of budget by 2.3 percent year-to-date, but grew 1.7 percent from the prior year. Admit-to-observe stays also lagged behind budget in the second quarter, but still represents a 7.3 percent increase over fiscal year 2002.
Admissions |
|
| FY '03 actual: |
21,678 |
| FY '03 budgeted: |
22, 194 |
| FY '02 actual: |
21,322 |
| Patient Days |
128,521 |
| Inpatient Surgeries |
8,879 |
| Births |
1,752 |
Length of stay (LOS) improved in the second quarter, but was 0.12 days over the year-to-date target. Management of LOS is important to create capacity space for admissions and as a workload/expense driver.
Length of stay |
Days |
| FY '03 actual: | 5.93 |
| FY '03 budgeted: |
5.81 |
| FY '02 actual: |
5.87 |
Average daily census |
|
| FY '03 actual: |
706 |
| Average beds |
882 |
| Occupancy rate |
80.06% |
| FY '03 budgeted |
709 |
| FY '02 actual |
688 |
Outpatient visits growth did not occur where it was anticipated. Health center visits were up, but Emergency Department and on-campus visits were flat or down. Ancillary activity, which grew in the second quarter, was the real driver of outpatient revenue.
Outpatient visits |
|
| FY '03 actual: |
391,842 |
| Clinic visits |
205,440 |
| Health Center visits |
150,214 |
| Emergency visits | 36,188 |
| FY '03 budgeted: |
400,923 |
| FY '02 actual: | 390,083 |
| Outpatient Surgeries |
7,376 |
Observation stays |
|
| FY '03 actual: |
2,474 |
| FY '03 budgeted: | 2,523 |
| FY '02 actual: | 2,305 |
| Chemotherapy infusion |
153 |
| Routine post-proceedure recovery | 698 |
General Hospital financial statement (in millions)
| YTD Actual | Variance to Budget | FY 2002 | |
| Net Patient Revenue | 535.0 | (5.3) | 493.1 |
| Research Revenue | 189.0 | 14.5 | 161.4 |
| Other Operating Revenue | 53.8 | 2.1 | 49.1 |
| Total Revenue | 777.8 | 11.3 | 703.6 |
| Salary and Benefits | 299.2 | (4.0) | 266.2 |
| Supplies and Outside Services | 182.3 | (4.7) | 163.1 |
| Outside Operating Expenses | 141.7 | .9 | 134.6 |
| Direct Research Expenses | 136.2 | (12.3) | 114.8 |
| Total Expenses | 759.4 | (20.1) | 678.7 |
|
|
|||
| Gain/(Loss) from Operations | 18.4 | (8.8) | 25.0 |
Non-Operating Gains/(Losses) |
(5.7) |
(2.1) |
4.0 |
|
|
|||
| Net Gain/(Loss) | 12.7 | (10.9) | 29.0 |
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