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HEALTH
AFFAIRS COMMITTEE
Friday, March 27, 1998
10:30 - 11:00 a.m.
East Oval Room, The Rotunda
Committee Members:
Charles
M. Caravati, Jr., Chair
John P. Ackerly, III
William G. Crutchfield, Jr.
William H. Goodwin, Jr.
T. Keister Greer
C. Wilson McNeely, III
Albert H. Small
AGENDA
-
REPORTS BY THE VICE PRESIDENT AND PROVOST FOR HEALTH SCIENCES
(Dr. Cantrell)
-
A. Medical Center Financial Report (as of December 31, 1997) (Dr.
Cantrell to introduce Mr. Halseth) (Mr. Michael J. Halseth to
present)
- B.
Vice President's Remarks
- MEDICAL
CENTER FINANCIAL REPORT (as of December 31, 1997)
- BACKGROUND:
The University of Virginia Medical Center prepares a quarterly
operating and financial report for management and Board review.
These reports are reviewed with the Executive Vice President and
Chief Financial Officer before they are sent to the Health Affairs
and Finance Committees of the Board of Visitors.
- DISCUSSION:
At mid-year, the Medical Center is experiencing strong levels
of inpatient occupancy, outpatient activity, and very high patient
acuity. These factors have resulted in higher revenues, expenses,
and staffing than originally projected.
-
New accounting procedures and systems allow the Medical Center
to report actual revenues and expenses in a more timely and effective
way. Through December, total operating revenues have exceeded
budget by $4.5 million, and contractual allowances from third
party payors have increased substantially as the result of Medicare
reimbursement cutbacks and growth in managed care. These increased
contractual allowances reduce the Medical Centers total operating
revenues.
-
Through December, total operating expenses, due to growth in volumes
and acuity, have exceeded budget by $6.4 million, driven primarily
by growth in the use of high-tech drugs and medical supplies.
Programs aimed at more aggressive medical management of high cost
drugs and supplies are underway.
-
Projections for the remainder of the fiscal year assume continued
strong volumes of activity, continued growth in managed care,
and a reasonable operating margin. The Medical Center is implementing
further cost reduction and revenue enhancement strategies.
- REQUIRED
ACTION: None.
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