July 27, 2001
FY 2001 second-quarter results
A quarterly status report of hospital performance
Financial overview: Although the MGH had a positive second quarter, the financial results were slightly behind budget. The year-to-date operating gain is $1.9 million behind the budgeted target of $12.3 million. Inflationary pressures continue to affect expenses. For example, managers have been using more expensive non-permanent employees because of the tight labor market. Expenses because of medical/surgical supplies, pharmaceuticals and implants have driven the 3.7 percent supplies overage. The $2.0 million utilities variance is a result of volatile steam expenses.
Admissions exceeded the prior year by 2.8 percent, but continued to lag behind this year's budget target. Admissions should rebound in the second six months, but are expected to fall short of the FY'01 admissions budget. In March, the hospital experienced an increase in births, which should continue and will catch up to budget by the end of the fiscal year. Opening additional inpatient beds also will help to accommodate additional volume and enable admissions to grow in key areas.
Admissions |
|
| FY '01 actual: | 20,551 |
| FY '01 budgeted: | 20,958 |
| FY '00 actual: | 19,992 |
| Patient Days | 123,068 |
| Inpatient Surgeries | 8,510 |
| Births | 1,660 |
Length of stay (LOS) crept up to nearly 6.0 days, 11 days above budget and .04 days longer than last year. Several initiatives established through the Clinical Performance Management program continue to focus on improving patient flow and reducing LOS.
Length of stay |
Days |
| FY '01 actual: | 5.99 |
| FY '01 budgeted: | 5.88 |
| FY '00 actual: | 5.95 |
Average daily census was at 676.
Average daily census |
|
| FY '01 actual: | 676 |
| Average beds | 855 |
| Occupancy rate | 79.09% |
| FY '01 budgeted | 677 |
| FY '00 actual | 653 |
Outpatient visits were slightly below budget and 2.2 percent behind FY'00. Health center visits and Emergency Department visits partially offset the unfavorable variance in the main campus visits. Total outpatient visits were significantly affected by the March snowstorm, which closed the health centers and main campus practices for one full day. Outpatient ancillary volume is expected to increase slightly in the second half of the year.
Outpatient visits |
|
| FY '01 actual: | 376,028 |
| Clinic visits | 202,102 |
| Health Center visits | 136,825 |
| Emergency visits | 37,101 |
| FY '01 budgeted: | 377,365 |
| FY '00 actual: | 384,415 |
| Outpatient Surgeries | 7,268 |
Observation stays |
|
| FY '01 actual: | 2,554 |
| FY '01 budgeted: | 2,788 |
| FY '00 actual: | 2,746 |
| Chemotherapy infusion | 142 |
| Routine post-proceedure recovery | 767 |
General Hospital financial statement (in millions)
| YTD Actual | Variance to Budget | FY 2000 | |
| Net Patient Revenue | $429.0 | $0.4 | $385.9 |
| Research Revenue | 139.8 | 0.1 | 127.3 |
| Other Operating Revenue | 41.5 | 3.7 | 38.6 |
| Total Revenue | 610.3 | 4.2 | 551.8 |
| Salary and Benefits | 232.8 | (2.5) | 206.2 |
| Supplies and Outside Services | 142.4 | (4.6) | 120.0 |
| Outside Operating Expenses | 127.4 | 1.1 | 122.3 |
| Direct Research Expenses | 97.3 | (0.1) | 89.3 |
| Total Expenses | 599.9 | (6.1) | 537.8 |
| Current Operating Gain/(Loss) | 10.4 | (1.9) | 13.9 |
| Restructuring Charges | 0.0 | 0.0 | 0.0 |
| Prior Year Adjustments | 0.0 | 0.0 | 5.5 |
| Gain/(Loss) from Operations | 10.4 | (1.9) | 19.4 |
Non-Operating Gains/(Losses) |
15.1 |
5.3 |
23.4 |
| Net Gain/(Loss) | $25.5 | $3.4 | $42.8 |
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