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U-M Hospitals & Health Centers Weathers Tough Economic Climate, Plans for Growth
Date:6/18/2009

d eliminate re-work," says Strong. "As a result, patient care quality has improved during this challenging time."

At the same time, the non-clinical areas of UMHHC have used attrition management and a hiring freeze to minimize layoffs while reducing staff levels. Some areas have had a reduction in force (RIF), affecting 60 employees. The majority have found other positions in the organization, and the remaining ones are receiving transition assistance.

Building for the future

A number of expansion projects now under way at UMHS show why positive operating margins are so important. All will help UMHHC and its partners in the Medical School's Faculty Group Practice serve even more patients in coming years. And all are paid for out of UMHS reserve funds - the "savings account" that comes from years of positive operating margins. Some borrowing is used for large projects, but U-M's excellent bond rating ensures interest rates are as low as possible.

Among the projects: an 18-bed Medical Observation Unit that will open next month in University Hospital. It will accommodate patients who do not need a regular inpatient hospital bed but need to be observed to determine their other care requirements. Such care is on the rise, and helped account for the 3.2 percent rise in adjusted hospital discharges that UMHHC experienced in fiscal 2009. Outpatient visits were also up by 3.1 percent.

In fiscal year 2010, an additional 21 beds in renovated space at University Hospital, and three new intensive care beds in C.S. Mott Children's Hospital, will be available for use as needed, based on rising demand. New medical imaging facilities will also go on-line for patient care.

Another major project now under way is the Brehm Tower, an expansion of the Kellogg Eye Center named for donors Bill and Dee Brehm. It will open in less than a year and will replace and expand Kellogg's existing
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SOURCE University of Michigan Health System
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