2009 Fiscal Year in Review
Stress within the national financial markets affects all aspects of our economy, including health care, and for the University of Rochester Medical Center (URMC), the fiscal year ended June 30, 2009, was extremely challenging. Our combined financial statements show an $18.8 million decrease in net assets, marking the first time in decades that URMC’s net assets did not increase.
Nonetheless, URMC still generated a $29.7 million operating margin, thanks to an increase in both the volume and intensity of clinical services provided, as well as a careful cost-reduction effort.
Given the market crisis, URMC saw a significant decrease in net assets due to non-operating activity, including but not limited to (1) losses on investments, (2) unfavorable mark-to-market adjustments on swap transactions, and (3) the recognition of minimum pension liabilities in connection with certain defined benefit pension plans.
It should be noted that, even during these difficult economic times, the Medical Center invested more than $109 million in property, physical plant, and technology upgrades. These investments will help ensure that URMC continues to provide high quality care, conducts breakthrough research, and attracts the very best faculty, students, and residents.