Fiscal Flexibility

In 2009, URMC faced a confluence of internal and external financial pressures including tightened state and federal budgets which triggered cuts to Medicaid and Medicare reimbursement, limited debt capacity, and market instability, as well as sluggish endowment performance, philanthropy, and investment income. The national economic meltdown intensified a number of ongoing pressures already felt by the Medical Center. To avoid a financial crisis, our hospitals – like all URMC components – proactively trimmed expenses to meet new revenue targets. 

By engaging leadership, faculty, and staff in dozens of rapid-cycle teams, we found creative ways to cut expenses by more than $40 million through improved efficiency, staff attrition, and generally doing more with less. In the end, about 45 layoffs were needed to realign our balance sheets, a number controlled by careful forethought and a proactive response. The success of our “Fiscal Fitness” initiative demonstrated our commitment to our collective success, leaving us with a leaner operation that can thrive in a future that will demand efficiency. 

 

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