Continuing on a path of financial rebound, the University of Toledo Medical Center reported a strong finish to 2020, reporting higher-than-expected inpatient and outpatient surgeries, and an increase in acute admissions in December.
The medical center, which was put up for sale in early 2020 following operating losses of $12 million through two quarters of the fiscal year, has an operating margin of over $2.6 million through December.
Though $11 million from the CARES Act assisted in improving the hospital’s finances, higher than anticipated revenues in certain departments has officials optimistic about UTMC’s financial sustainability moving forward.
“This is absolutely great news,” UT board trustee Mary Ellen Pisanelli said following a financial presentation of the former Medical College of Ohio hospital at a virtual board of trustees meeting Wednesday. “I think the takeaways are that operationally, there’s been a lot of excellence that’s gone on, it’s not just COVID funds that are helping us out here. There’s a lot of other good news that’s packed into here, so congratulations to everybody.”
UT chief financial officer Matt Schroeder applauded UTMC chief executive officer Rick Swaine, noting that he and his team of executives have done an “exceptional job” working with physicians to build back revenues.
After the arrival of interim President Dr. Gregory Postel last June, the school quickly decided the hospital, which was still up for sale at the time, had a path forward, and it stopped accepting requests for proposals. UTMC then began to rebound financially with help from the coronavirus aid given by the government, a partnership with the Toledo Clinic that has strengthened its Eleanor N. Dana Cancer Center, and higher than expected revenues from pharmacy retail business.
Speaking Wednesday at the virtual meeting, UTMC chief financial officer Troy Holmes said inpatient surgeries have increased by 11 percent from what was budgeted for fiscal year 2021. That coupled with a nearly 17 percent increase in outpatient surgeries, is good news for the hospital even as coronavirus restrictions continue to limit certain departments.
“Surgery revenues are comparatively much higher than nonsurgery revenues,” Mr. Holmes said.
For many clinics at UTMC, volumes have decreased amid the pandemic as people have postponed or canceled elective procedures.
“The need for additional providers is evident in several areas,” he said. “Family medicine, orthopedics, heart,and vascular center.”
But the hospital is also on pace to deliver a record number of kidney transplants in fiscal year 2021, Mr. Holmes said. And the hospital also saw its revenue increase from November to December to finish the calendar year strong.
“We’re much better than we anticipated,” Mr. Holmes said.
First Published February 10, 2021, 7:56 p.m.
