Michigan Medicine is projecting positive 2024 fiscal year-end results for its clinical operations, with an anticipated 2.9% — or $226.5 million — operating margin on forecasted operating revenues of $7.9 billion.
The results reflect performance from University of Michigan Health, the organization’s clinical branch that includes 11 hospitals, hundreds of clinics statewide, and the U-M Medical Group, UM Health-West and UM Health-Sparrow.
David C. Miller, president of U-M Health and executive vice dean for clinical affairs at the Medical School, presented the projected results for the fiscal year that ends June 30, along with the FY ’25 plan, to the Board of Regents on June 20.
“In fiscal year 2024, we maintained our focus on our BASE priorities — Belonging & Inclusion, Access, Safety & Quality, and Experience for our patients and team members — while also building the foundations for a statewide network that supports integrated, cost effective and high-quality health care services for the patients and communities we serve across Michigan,” Miller said.
The FY ’24 financial performance allows for continual investments in faculty and staff, and capital improvements including the construction of a new hospital — The D. Dan and Betty Kahn Health Care Pavilion — that is scheduled to open in fall 2025, a new Ypsilanti Health Center set to open later this year, and an innovative program providing patients with hospital level care at home.
Marschall S. Runge, CEO of Michigan Medicine, dean of the Medical School and executive vice president for medical affairs, expressed gratitude to Michigan Medicine employees who made the solid financial performance possible.
“The work of our collective teams allows us to provide life-changing, patient-centered care every day. We are grateful for their dedication,” Runge said. “The skills, expertise and commitment of our employees will allow us to manage nearly 90,000 discharges and more than 4 million outpatient encounters in FY ’25 at over 200 care locations.”
Regents also approved a budget that sets financial performance targets for Michigan Medicine’s clinical operations for the fiscal year that begins July 1. The FY ’25 plan aims for a 1.7% operating margin.
U-M Health will “strengthen its clinical enterprise for both today and tomorrow by continuing to invest in our teams, improving access and experience at our academic medical center, promoting and supporting continued innovation, and advancing clinical integration across our statewide network, with an emphasis on providing the right care in the right place at the right time,” Miller said.
“As we grow, maintaining the highest quality of care across UM Health will always be our top priority.”
