September 28, 2001
FY 2001 third-quarter results
A quarterly status report of hospital performance
Financial overview: The MGH's third-quarter results have exceeded an aggressive budget target, resulting in the hospital being ahead of budget, with a year-to-date operating gain of $26.3 million. Year-to-date revenue adjustments played a significant role in the third-quarter operating gain. Expense variances have grown, stemming from inflationary pressures for salaries. The tight labor market continues to affect salary expense, which includes a recent market adjustment for nursing and a new shift differential policy. A $2.5 million overage in pharmaceuticals accounts for 44.5 percent of the supplies variance, while a reclassification of transplant-related supplies from outside services has helped drive a 12.9 percent overage in implants. A significant increase in the steam rate created a large variance in utilities.
Admissions were up by 537 over FY '00 but were 593 below FY '01 budgeted admissions. Admissions for the year are forecast to be 41,698, based on the assumption that fourth-quarter admissions will slightly exceed budget.
Admissions |
|
| FY '01 actual: | 30,967 |
| FY '01 budgeted: | 31,560 |
| FY '00 actual: | 30,430 |
| Patient Days | 185,383 |
| Inpatient Surgeries | 12,831 |
| Births | 2,507 |
Length of stay (LOS) in the third quarter improved but still lags behind budget and prior year on a year-to-date basis.
Length of stay |
Days |
| FY '01 actual: | 5.99 |
| FY '01 budgeted: | 5.88 |
| FY '00 actual: | 5.93 |
Average daily census |
|
| FY '01 actual: | 679 |
| Average beds in service | 858 |
| Occupancy rate | 79.14% |
| FY '01 budgeted | 680 |
| FY '00 actual | 661 |
Outpatient visits numbered 2,700 more than budget in the third quarter. Year-to-date outpatient visits, however, were 0.8 percent below both budget and FY '00 levels. Health center visits maintained a strong volume in the third quarter, and the Emergency Department exceeded budget by 1,673 visits by the end of the third quarter. Outpatient ancillary revenue exhibited strong growth over the previous quarters, and outpatient surgeries exceeded budget by 471 through the third quarter.
Outpatient visits |
|
| FY '01 actual: | 569,607 |
| Clinic visits | 305,405 |
| Health Center visits | 209,208 |
| Emergency visits | 54,994 |
| FY '01 budgeted: | 574,455 |
| FY '00 actual: | 573,982 |
| Outpatient Surgeries | 11,175 |
Observation stays |
|
| FY '01 actual: | 3,878 |
| FY '01 budgeted: | 4,309 |
| FY '00 actual: | 4,148 |
| Chemotherapy infusion | 244 |
| Routine post-procedure recovery | 1,189 |
General Hospital financial statement (in millions)
| YTD Actual | Variance to Budget | FY 2000 | |
| Net Patient Revenue | $665.0 | $12.0 | $593.6 |
| Research Revenue | 215.2 | 3.9 | 196.6 |
| Other Operating Revenue | 63.4 | 6.2 | 57.3 |
| Total Revenue | 943.6 | 22.1 | 847.5 |
| Salary and Benefits | 354.6 | (8.2) | 313.1 |
| Supplies and Outside Services | 219.2 | (10.0) | 188.1 |
| Outside Operating Expenses | 193.0 | 1.0 | 181.0 |
| Direct Research Expenses | 150.5 | (3.6) | 138.4 |
| Total Expenses | 917.3 | (20.8) | 820.6 |
| Current Operating Gain/(Loss) | 26.3 | (1.2) | 26.9 |
| Restructuring Charges | 0.0 | 0.0 | 0.0 |
| Prior Year Adjustments | 0.0 | 0.0 | 5.5 |
| Gain/(Loss) from Operations | 27.6 | (2.5) | 35.1 |
Non-Operating Gains/(Losses) |
18.2 |
3.5 |
33.8 |
| Net Gain/(Loss) | $45.8 | $6.0 | $68.9 |
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