fourth quarter financial report – fy 2009
DESCRIPTION
Fourth Quarter Financial Report – FY 2009. FINANCE COMMITTEE MEETING OCTOBER 19, 2009. Highlights of Operating Results. Academic Enterprise (everything but the hospital) FY 2009 original budget operating margin = -1.5% FY 2009 amended budget operating margin = -3.2% - PowerPoint PPT PresentationTRANSCRIPT
FINANCE COMMITTEE MEETING
OCTOBER 19 , 2009
Fourth Quarter Financial Report – FY 2009
Highlights of Operating Results
Academic Enterprise (everything but the hospital) FY 2009 original budget operating margin = -1.5% FY 2009 amended budget operating margin = -3.2% FY 2009 actual operating margin = -2.1% FY 2010 budgeted operating margin = 0%
Clinical Enterprise FY 2009 budgeted operating margin = 5.1% FY 2009 actual operating margin = 1.1% FY 2010 budgeted operating margin = 3%
Overall FY 2009 original budget operating margin = .9% FY 2009 amended budget operating margin = -.2% FY 2009 actual operating margin = -1% FY 2010 actual operating margin = 1%
Academic Financial Results ($millions) Actual Budget Favorable
(unfavorable)
Net Tuition $ 189.0 $ 185.2 $ 3.8
SSI $ 125.9 $ 124.8 $ 1.1
Sales & Service $ 81.9 $ 71.7 $ 10.2
Grants/Other $ 108.6 $ 89.0 $ 19.6
Total Revenue $505.4 $470.7 $34.7
Salaries & Benefits $ 306.2 $ 301.2 ($ 5.0)
Supplies, etc $ 53.7 $ 47.7 ($ 6.0)
Occupancy $ 25.5 $ 26.1 $ 0.6
COGS Auxiliary $ 30.7 $ 22.7 ($ 8.0)
Depreciation $ 30.8 $ 30.0 ($ 0.8)
Hospital cross chg ($ 8.9) ($ 10.4) ($ 1.5)
Grants $ 72.7 $ 63.7 ($ 9.0)
Other $ 5.6 $ 4.8 ($ 0.8)
Total operating expenses $ 516.3 $ 485.8 ($ 30.5)
Operating loss ($ 10.9) ($ 15.1) $ 4.2
Investments loss ($ 31.4) ($ 8.0) ($ 23.4)
Net Loss ($ 42.2) ($ 23.1) ($ 19.1)
Senate Bill 6 Ratios
Primary Reserve Ratio – expendable net assets / total operating expenses
Viability Ratio – expendable net assets / long-term debt
Net Income Ratio – net income / total operating revenues
OSU = 3.2 Miami = 2.9 UT = 2.6 Cincinnati = 2.3 Akron = 2.0
Ohio University Scores
Senate Bill 6 Composite Score
Akron
Cincinnati
Miami
Ohio State
Outlook for FY 2010
Reasons for Optimism Fall Enrollments
Exceeded Budgeted Amounts
More Reliable Budget – Structural Deficits Corrected in FY 2010 Budget Process
New IT-enabled Budgetary Controls Implemented July 1, 2009
State of Ohio Exceeded First Quarter Revenue Projections by $30 Million
New Hospital Alliances Healthcare Reform
Reasons for Concern State of Ohio FY 2011
Operating Budget Video slots Rescission of tax cut
State of Ohio FY 2012 Operating Budget Federal stimulus dollars
UTMC Operating Margin Partially Funded
Depreciation Payer Mix –
Uncompensated Care AFSCME Negotiations
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
UTMC Uncompensated CareFY 2008 FY 2009 FY 2010
In 0
00's
2008 2009 Change
$15,345,785 $16,152,110 $806,325
YTD YTD 2009 2010 Change
$2,626,246 $5,351,525 $2,725,279
Cost Savings Initiatives - Clinical
Reduction in force and workforce reorganizations.Vendor consolidation/renegotiation.Controlling the use of high-cost biological agents
and drugs.New procedures to control uncompensated care.Outsourcing/more student employment where
appropriate.Strategic service line growth strategy.New strategic alignments/joint ventures.New union contract (in progress).New departmental liaison program (“Margin
Marines”). Hired new hospital budget director.
Furlough program (continued planning)
Conclusion
FY 10 operating budget for the Academic Enterprise is currently solid; State of Ohio budget is an unsettled issue.
There are ongoing UTMC cost-reduction initiatives to protect its 3% operating margin and to create a more sound fiscal footing in a highly dynamic environment.
