Fiscal year ends with positive margin after midyear cost-cutting efforts, but new fiscal year presents fresh challenges
ANN ARBOR, Mich., June 18 /PRNewswire-USNewswire/ -- Despite a very challenging economic environment, the
Also today, the Regents approved UMHHC's budget plan for the next fiscal year. It renews the challenge to end in positive territory, despite an economic climate that will continue to include declining revenue growth for care provided at U-M's three hospitals and 40 outpatient locations.
Positive margins are needed to fuel the growth and renewal -- in both physical facilities and human resources -- that will allow the U-M Health System to meet the rising demand for its nationally known patient care.
UMHHC is expecting to end fiscal 2009 with a margin of $14 million on operating revenues of $1.8 billion - a 0.8 percent margin that's smaller than a 3 percent goal set last spring. The target for 2010 is a 1.7 percent margin on revenues of $1.91 billion.
What kept the fiscal 2009 operating margin in positive territory was the diligent effort at all levels to use teamwork, collaboration and integration to contain costs while also serving more patients, says Doug Strong, MBA, the director and CEO.
"The collective efforts of our faculty and staff and administration, both those in direct patient care and the rest that support that care, made it possible for us to achieve a positive margin at a time when many of our peer institutions regionally and nationally are struggling," says Strong. "The coming year will likely be even more challenging. But the str
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