Financial Update June 11, 2018 OPEN HEALTH AFF INFO 1 1 - - PowerPoint PPT Presentation

Financial Update

June 11, 2018

OPEN – HEALTH AFF – INFO 1 – 1

OPERATING RESULTS

April F2018

OPEN – HEALTH AFF – INFO 1 – 2

Patient utilization – average daily census

April F18

• Average Daily Census was 7.2% higher than plan reflecting a higher census at all hospitals
• The higher census at University Hospital reflected a more severe infectious disease season, additional

staffed beds, and market share growth

• The higher census at the Women’s and Children’s Hospital reflected a higher neonatal census
• Patient acuity as measured by case-mix-index was higher than plan reflecting an increase in acuity at

the Orthopaedic Institute and Psychiatric Hospital

244.6 238.5 252.3 82.4 83.8 91.7 49.5 48.3 51.5 10.4 9.1 11.4 386.9 379.7 406.9

1.74 1.73 1.75 1.60 1.65 1.70 1.75 1.80 1.85 1.90

• 50.0

100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 F2017 Plan F2018 UH WCH MUPC MOI Case mix index

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Patient utilization – surgical volume

April F18

• Surgical volume was near plan and slightly favorable to prior year
• Higher volume at the Women’s & Children’s Hospital, due mostly to Ophthalmology, offset

unfavorable volume at the Orthopaedic Institute due primarily to the timing of surgeon ramp-up

• The mix of outpatient to inpatient surgical cases was 63.9% compared to a plan of 63.2% reflecting

higher outpatient activity at both University Hospital and Women’s & Children’s Hospital

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Patient utilization – clinic visits

April F18

• Clinic visits were 4.6%, or 24,890 visits, favorable to plan with favorable visits at all operating units
• The favorability at University Hospital reflected higher visits at various Family Medicine clinics, Eye

Institutes and the Ellis Fischel Cancer center due to additional physicians and productivity

• The favorability at the Women’s & Children’s Hospital reflected higher visits at the Autism and

Hearing centers

345,799 350,420 363,865 118,587 120,524 129,053 15,005 14,042 14,552 52,832 53,802 56,208 532,223 538,788 563,678

• 100,000

200,000 300,000 400,000 500,000 600,000 F2017 Plan F2018 UH WCH MUPC MOI

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Financial performance

April F18

• Operating Income of $90 million was $47 million favorable to plan driven primarily by higher patient

utilization, favorable service-mix, and labor cost efficiencies

• Net Income of $68 million was $41 million favorable to plan driven by favorable operating income and

investment income, reduced by higher performance based academic mission support

Actual Plan Consolidated Financial Results Prior Year FY18 Annual Plan Moody's A Rated

($000'S)

$838,504 $780,494 Total Operating Revenue $770,858 $938,952 748,163 737,186 Operating Expenses* 692,426 886,446 90,341 43,308 Operating Income 78,432 52,506 (22,230) (16,047) Non-operating Expenses, Net (16,651) (17,739) $68,111 $27,261 Change in Net Assets $61,781 $34,767

*Includes University purchased clinical services annual budget of $44 million.

Financial Ratios and Benchmarks

10.8% 5.5% Margin Percent 10.2% 5.6% 3.2% 6.7% 2.9% Annualized Return on Total Assets 6.4% 2.9% 4.6% 177.7% 166.3% Cash to Total Debt 151.3% 169.6% 121.5% 27.9% 29.0% Debt to Capitalization 30.9% 28.6% 33.9% 5.4 3.6 Maximum Annual Debt Service Coverage 5.2 3.6 5.0 228.7 216.4 Days Cash on Hand 224.3 217.8 215.5 48.9 51.0 Net Days Revenue in AR 53.9 51.0 48.1

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