2008 Annual Report

We have the 2008 Annual Report, complete with leadership teams, available as an electronic download (pdf)

URMC Financials

2008 Fiscal Year in Review

James P. Wilmot Cancer CenterThe University of Rochester Medical Center’s consolidated financial statements for the 2008 fiscal year reflect a $32.5 million increase in net assets. While this level of financial performance is commendable, it should be noted that it is significantly less than the 2007 fiscal year, which generated a $69.7 million increase in net assets.

Several recent fiscal achievements are worth highlighting. The Medical Center has maintained compliance with the University endowment draw guidelines of 5.5 percent (for both the School of Medicine and Dentistry and the School of Nursing), and continued growth and steady financial performance in its clinical enterprise (Strong Memorial Hospital, Highland Hospital, and the University of Rochester Medical Faculty Group). URMC has also finished several key construction projects – including the new Wilmot Cancer Center, the new Strong Memorial Hospital Observation Unit, and renovations of 4-1300 (an adult inpatient unit), the Eye Institute, and the CVRI vivarium. URMC has finalized financial planning for future ventures, including the Pediatric Replacement and Imaging Sciences Modernization (PRISM) project, the Clinical and Translational Science Building (CTSB), and the new, off-site Ambulatory Surgical Center.

Clinical and Translational Science BuildingAdditionally, URMC has invested $133 million in property, plant and equipment, has paid $18.4 million to debt principal payments (leaving an outstanding long-term debt balance of $419 million), and has realized the highest annual royalty income in its history.

The discrepancy between this year’s financial performance and last year’s can be attributed primarily to a year-over-year decline ($37 million) in the increase in net assets related to Strong Memorial Hospital (SMH). While analyzing the major reasons for this trend, the most significant factors include: a precipitous decrease in the number of liver transplant cases and tracheotomy cases, an unrealized loss on investments, market rate recognition on swap transactions, and the adoption of FAS 158 (a measure requiring full recognition of post-retirement benefits). With the exception of SMH, the other Medical Center divisions reported results that were not significantly different from previous years.

As indicated on the Consolidated Statement of Operations, the change in total net assets, together with non-cash expenditures (e.g., depreciation), results in significant capital available to fund debt and other capital requirements. However, in light of ongoing expenses – including replacing equipment and emerging technology, new construction and renovation projects, and recruitment and retention of faculty and staff – URMC’s faculty and staff must continue to work even more diligently to generate extramural sources of funding, while also becoming more efficient in the delivery of the services provided to the region.

Consolidated Statement of Operations (in thousands)
  For the 12 Months Ended:
June 30, 2007
For the 12 Months Ended:
June 30, 2007
Total revenue $1,837,320 $1,943,610
Total expense 1,752,300 1,902,670
Excess of revenues over expenses 85,020 40,940
Other changes in net assets (15,290) (8,400)
Change in net assets 69,730 32,540
Add back depreciation expense 47,970 51,240
Amount available to meet capital requirements including debt payment 117,700 83,780
Total capital requirements, including debt payments 160,080 151,800
Shortfall $ (42,380) $ (68,020)
The Medical Center consolidated statements include: Strong Memorial Hospital, the School of Medicine and Dentistry, the School of Nursing, the University of Rochester Medical Faculty Group, Highland Hospital and Affiliates, Eastman Dental Center, the Visiting Nurse Service and The Highlands at Brighton.
Revenues (Fiscal year 2008)
Revenue chart
Expenses (Fiscal year 2008)
Expenses Chart

Total Capital Requirements $ In Thousands (includes department principal payments)
Fiscal Year 2009 SMD SMH SON HAD URMFG EDC URMC
(total)
HH HS VNS Total
Capital Budget (total submissions)* 60,814 97,373 239 11,722 4,983 2,368 177,499 21,075 1,294 304 200,172
Debt principal payments** 3,405 7,032 ----- 1.815 ------ ------ 12,252 3,395 961 446 17,054
  64,219 104,405 239 13,537 4,983 2,368 189,751 24,470 2,255 750 217,226
*Capital budget submission files **LTD production spreadsheet from UR Finance   Rounded 217,200
Acute Care (For Strong Memorial Hospital and Highland Hospital)
Fiscal Year 2007
(revised)
2008
Patient Discharges 57,549 58,758
Patient Days 343,654 337,138
Average Length of Stay (days) 6.0 5.7
Occupancy 92.0% 89.9%
Deliveries 6,149 6,495
Clinic Visits 525,693 529,157
Ambulatory Surgery 18,094 17,810
Emergency Visits 122,512 127,007
Long-Term Care
Fiscal Year 2007 2008
Resident Days Highlands at Brighton
Highlands Living Center
51,570
42,851
51,390
42,557
  Total 94,421 93,947
Occupancy Highlands at Brighton
Highlands Living Center
97.4%
96.2%
96.8%
95.3%
  Total 96.8% 96.1%
Visiting Nurse Service of Rochester
Fiscal Year 2007 2008
Total Visits Professional Visits
Para-professional Hours
132,628
307,418
134,533
286,603
Hospice      
Occupancy Highlands at Brighton 97.4% 96.8%
Research Spending School of Medicine and Dentistry (in thousands)
SMD Research spending chart
Research Spending School of nursing (in thousands)
SMD Research spending chart