January 11, 2002
year-end results
A status report of hospital performance
Financial overview: The MGH recorded strong financial results for the entire fiscal year (FY) '01, with fourth-quarter results driving an overall $43.7 million operating gain, which is $9.2 million better than budget. FY '02 budget is based on FY '01 performance.
Investment income was below budget and below prior year because of the market performance. This will affect the projections of cash available for capital spending. The total FY '01 expense variance was $37.0 million. A higher patient acuity and tight labor market drove an increase in salary rates and the number of FTEs. Pharmaceuticals and steam/electricity were the largest individual nonsalary variances. New utility contracts should stabilize rates for FY '02.
Admissions increased by 1.9 percent from FY '00. Although admissions were under budget in each quarter, variances decreased.
Admissions |
|
| FY '01 actual: | 41,504 |
| FY '01 budgeted: | 42,171 |
| FY '00 actual: | 40,747 |
| Patient Days | 247,668 |
| Inpatient Surgeries | 17,139 |
| Births | 3,416 |
Length of stay (LOS) was 5.91 days for the fourth quarter, bringing LOS for the fiscal year to 5.97, which was 0.08 days above budget and 0.04 days higher than in FY '00. LOS reduction efforts must continue to ensure that capacity is managed more effectively.
Length of stay |
Days |
| FY '01 actual: | 5.97 |
| FY '01 budgeted: | 5.89 |
| FY '00 actual: | 5.93 |
Average daily census |
|
| FY '01 actual: | 679 |
| Average beds | 860 |
| Occupancy rate | 78.9% |
| FY '01 budgeted | 680 |
| FY '00 actual | 662 |
Outpatient visits were under budget for the year, but slightly ahead of FY '00 levels. On-campus outpatient visits were responsible for the entire negative variance. One-time events, such as the snowstorm in March 2001 and the Sept. 11 tragedy, negatively affected outpatient volume. Health center and Emergency Department visits actually exceeded budget.
Outpatient visits |
|
| FY '01 actual: | 755,270 |
| Clinic visits | 404,060 |
| Health Center visits | 276,227 |
| Emergency visits | 74,983 |
| FY '01 budgeted: | 771,016 |
| FY '00 actual: |
754,246 |
| Outpatient Surgeries | 14,599 |
Observation stays |
|
| FY '01 actual: | 5,029 |
| FY '01 budgeted: | 5,723 |
| FY '00 actual: | 5,392 |
| Chemotherapy infusion | 335 |
| Routine post-procedure recovery | 1,633 |
General Hospital financial statement (in millions)
| YTD Actual | Variance to Budget | FY 2000 | |
| Net Patient Revenue | 910.0 | 33.4 | 808.7 |
| Research Revenue | 293.0 | 9.0 | 265.7 |
| Other Operating Revenue | 87.9 | 11.0 | 77.3 |
| Total Revenue | 1,290.9 | 53.4 | 1,151.7 |
| Salary and Benefits | 484.4 | (20.2) | 427.9 |
| Supplies and Outside Services | 303.0 | (22.0) | 262.1 |
| Outside Operating Expenses | 255.8 | 4.5 | 236.0 |
| Direct Research Expenses | 206.5 | (9.0) | 187.3 |
| Total Expenses | 1,249.7 | (46.7) | 1,113.3 |
| Current Operating Gain/(Loss) | 41.2 | 6.7 | 38.4 |
| Restructuring Charges | 0.0 | 0.0 | 0.0 |
| Prior Year Adjustments | 2.5 | 2.5 | 11.0 |
| Gain/(Loss) from Operations | 43.7 | 9.2 | 49.4 |
Non-Operating Gains/(Losses) |
15.8 | (3.8) | 40.2 |
| Net Gain/(Loss) | 59.5 | 5.4 | 89.6 |
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