2011 Fiscal Year in Review
Last year, we reported that fiscal year ending June 30, 2010 – in terms of financial performance – ranked among the best in our Medical Center’s history. Even so, when we first began preparing for fiscal year ending in June 2011, we carefully considered a host of variables – including, but not limited to, the challenges associated with national health care reform, the New York State budget crisis, and a declining National Institutes of Health budget. Foreseeing these pressures, we projected that revenues would exceed expenses by 1.6 percent.
In light of this goal, we’re pleased to report that – while our financial performance did not rise to the record-setting level of our previous fiscal year – our final consolidated Medical Center financial statements for the twelve months ending June 30, 2011, exceeded the original budget, reflecting revenues in excess of operating expenses of $66 million (or 2.96 percent).
This better-than-budgeted performance can be attributed primarily to the success of URMC’s clinical divisions – including Strong Memorial Hospital, Highland Hospital and the University of Rochester Medical Faculty Group. Major drivers of their achievement included:
- An increase in outpatient volume (largest driver);
- Favorable pricing and lower utilization of certain medical supplies; and
- A significant decrease in professional liability insurance.
While we expect the same pressures noted above (reform, tightening NIH budgets, etc.) will only continue to escalate, we strongly believe that the greatest asset of the Medical Center – its people, including faculty, staff, and volunteers – will work together, remain nimble, and successfully meet the challenges ahead by creating a culture of innovation.