These reports are reviewed with the Executive Vice President and Chief Financial Officer before they are sent to the Health Affairs and Finance Committees of the Board of Visitors. At mid-year, the Medical Center is experiencing strong levels of inpatient occupancy, outpatient activity, and very high patient acuity. These factors have resulted in higher revenues, expenses, and staffing than originally projected. New accounting procedures and systems allow the Medical Center to report actual revenues and expenses in a more timely and effective way. These increased contractual allowances reduce the Medical Centers total operating revenues.
Programs aimed at more aggressive medical management of high cost drugs and supplies are underway.
Projections for the remainder of the fiscal year assume continued strong volumes of activity, continued growth in managed care, and a reasonable operating margin. The Medical Center is implementing further cost reduction and revenue enhancement strategies.