Financials

Health System Operating Statistics

In fiscal year 2022, UMMC posted a $10 million positive margin. While this was below the budgeted $33 million goal, it is important to recognize that it was accomplished in yet another consecutive year in which hospitals nationwide continued to battle the impact of the COVID-19 pandemic. FY2022 challenges centered around rising nurse wages, supply prices and drug prices – and largely stagnant reimbursements from insurers. Hospital staffing shortages constrained the number of available beds and the number of surgeries that could be performed on the main campus.

Over the past three fiscal years that have been impacted by the pandemic, UMMC has posted a cumulative $35 million margin against a planned $103 million margin budget. It is essential for the organization to achieve budget to support the many investments in facilities and our people that are required to support all missions. So, despite the years of federal and state COVID funding support and of internal spending controls, the Medical Center’s balance sheet assets are $68 million below our originally planned expectations. We are well positioned to recover with continued focus on revenue growth.

In FY2022 endowment values also suffered from a declining equity market which further reduced financial results. Favorably, UMMC realized strong growth in grant and tuition revenue. Grant revenue of $93 million was well ahead of the $73 million budget due to an increasing number of grant awards and a higher percent utilization of existing awards. Tuition revenue exceeded budget due to growing student counts. 

Going into the next fiscal year, UMMC is budgeting for another difficult year that will require the design of new and creative staffing models in patient care settings, improved supply utilization, and increased reimbursements from insurance partners to address continued inflationary pressures.

Statement of Revenue and Expenses