ANN ARBOR, Mich. — Michigan Medicine reported projected fiscal year-end results today, with an anticipated 2.4 percent ($103 million) operating margin on budgeted operating revenues of $4.3 billion for the academic medical center of the University of Michigan.
The financial results for Michigan Medicine include performance from the University of Michigan Health System’s three hospitals, 125 clinics and the U-M Medical Group, as well as U-M Health, which represents Michigan Medicine affiliations.
David Spahlinger, M.D., presented the projection of positive year-end results for fiscal 2018 along with the fiscal 2019 plan today to the U-M Board of Regents during its monthly meeting.
“We’ve created a strategic framework that allows us to execute our long-term vision of being a healthcare provider of choice and an employer of choice in the state of Michigan,” says Spahlinger, executive vice dean for clinical affairs and president of the University of Michigan Health System.
“Our results reflect the commitment of our dedicated faculty and staff to providing excellent health care, improving our patients’ experiences and elevate the quality and efficiency of our services.”
Spahlinger said Michigan Medicine has continued to focus on activating new capacity and relationships with affiliate partners to position the whole organization for success across all its missions: patient care, education and research.
Several initiatives in fiscal year 2018 were designed to improve patient access and alleviate capacity issues.
• In February, Michigan Medicine and St. Joseph Mercy Health System announced a joint venture for the 133-bed St. Joseph Mercy Chelsea hospital.
The joint venture expands the surgical procedures that Michigan Medicine provides at St. Joseph Mercy Chelsea, as well as increases access to Michigan Medicine physicians for patients in Chelsea and across western Washtenaw County. Trinity Health owns and operates St. Joseph Mercy Chelsea Hospital as a part of St. Joseph Mercy Health System.
• In September, Michigan Medicine’s Brighton Center for Specialty Care will open in Brighton, Mich. The new ambulatory care facility will have 297,000 square feet of space that houses more than 40 Michigan Medicine specialty services for children and adults.
• At the end of this month, many of Michigan Medicine’s Department of Pathology’s services will have moved into newly refurbished space at the North Campus Research Center, freeing up space in patient care locations like University Hospital.
• Last fall, Michigan Medicine opened the new West Ann Arbor Health Center Parkland Plaza in Scio Township, which houses 27 adult and pediatric primary and specialty care services.
Also today, the Regents approved a budget that sets Michigan Medicine financial performance targets for the fiscal year that begins July 1st.The fiscal 2019 plan aims for a 2.8 percent operating margin on revenues of $4.6 billion.
“Our plan is aggressive, but achievable. The current legislative and regulatory environment is putting pressure on academic medical centers nationwide,” Spahlinger says. “But we are taking proactive steps to reduce the cost of care and successfully navigate these changes to keep our financial trajectory on the right path.”
About Michigan Medicine: At Michigan Medicine, we create the future of healthcare through the discovery of new knowledge for the benefit of patients and society; educate the next generation of physicians, health professionals and scientists; and serve the health needs of our citizens. We pursue excellence every day in our three hospitals, 125 clinics and home care operations that handle more than 2.3 million outpatient visits a year.
Michigan Medicine includes the top ranked U-M Medical School and the University of Michigan Health System, which includes the C.S. Mott Children’s Hospital, Von Voigtlander Women’s Hospital, University Hospital, the Frankel Cardiovascular Center and the Comprehensive Cancer Center. Michigan Medicine’s adult hospitals were ranked no. 6 in the nation by U.S. News and World Report in 2017 and C.S. Mott Children’s Hospital was the only children’s hospital in Michigan nationally ranked in all 10 pediatric specialties analyzed by U.S. News and World Report for 2017-18. The U-M Medical School is one of the nation's biomedical research powerhouses, with total research funding of more than $470 million.
More information is available at www.michiganmedicine.org