UMass Memorial posts $68M surplus for 2016
UMass Memorial Health Care grew its overall surplus in fiscal 2016 to $68 million as patient volume remained steady and investment income grew.
UMass Memorial Health Care grew its overall surplus in fiscal 2016 to $68 million as patient volume remained steady and investment income grew, according to an earnings call on Thursday morning.
The results are a significant gain over the previous year, when the net surplus was $47.6 million.
Patient volume has remained stable compared to last year, while an increase in patient acuity level, which refers to how serious healthcare needs are, boosted patient revenue from $2.1 billion in fiscal 2015, to $2.3 billion in fiscal 2016.
Standard & Poor’s affirmed the systems BBB+ bond rating this week, even in the face of $125 million of new debt UMass Memorial borrowed last month to pay for the EPIC electronic health records project.
Spending on EPIC actually drove down the system's operating surplus to $47 million (down from $58 million the previous year) but UMass end up with the overall net surplus of $68 million because of its investment income.
Despite the electronic health records expense, UMass Memorial President and CEO Eric Dickson said in a call with reporters Thursday morning that the year ended Sept. 30 marked the third in a row of stable finances, which have allowed the system to double down on a vision for the future.
“It’s allowed us to stop thinking in reactionary mode and start thinking about the long-term strategy for the organization,” Dickson said.
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