Michigan Medicine shares expected positive financial results for FY ’18


Michigan Medicine reported fiscal year-end results June 21, with an anticipated 2.4 percent — or $103 million — operating margin on budgeted operating revenues of $4.3 billion for the University of Michigan’s academic medical center.

The financial results for Michigan Medicine include performance from the U-M 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, executive vice dean for clinical affairs and president of the Health System, presented the projection of positive year-end results for fiscal year 2017-18 along with the fiscal year 2018-19 plan June 21 to the Board of Regents at its monthly meeting.

“We’ve created a strategic framework that allows us to execute our long-term vision of being a health care provider of choice and an employer of choice in the state of Michigan,” Spahlinger said.

“Our results reflect the commitment of our dedicated faculty and staff to providing excellent health care, improving our patients’ experiences and elevating 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 FY ’18 were designed to improve patient access and alleviate capacity issues, including the following:

• In February, Michigan Medicine and Saint 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 Saint Joseph Mercy Health System.

• In September, Michigan Medicine’s Brighton Center for Specialty Care will open in Brighton, Michigan. 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 June, 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 at their meeting, regents approved a budget that sets Michigan Medicine financial performance targets for the fiscal year that begins July 1. The FY ’19 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 said. “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.”


Leave a comment

Commenting is closed for this article. Please read our comment guidelines for more information.