September 20 , 2002

Financial overview: The MGH's third-quarter results have been the strongest so far in FY'02. The hospital's year-to-date operating gain of $45.2 million exceeded budget by $13 million. Revenue increases drove these positive results. By the end of the quarter, all major components of revenue were better than budget and well above prior year. Expenses continued to rise in the third quarter with medical and surgical supplies accounting for 40.1 percent of the $5.1 million overage in supplies. Increased hiring and temporary staff usage in the tight labor market also affected salary expenses. Positive variances in depreciation, interest and provision for bad debt partially offset salary, supplies and outside services expense overages.

Admissions climbed in the third quarter and were a significant improvement over the target. Admit-to-observe stays continued to lag behind budget. Overall inpatient admissions improved after dipping down in the second quarter. Hospital volume needs a positive variance of 62 admissions in the fourth quarter to reach the forecasted target of 43,301.

Outpatient visits finished the third quarter 0.7 percent better than budget and 3.4 percent more than the prior year. The third quarter favorable variance was a result of health center visits. Emergency Department visits surpassed the budget target by 200. On-campus visits were 217 below budget in the third quarter.

General Hospital financial statement (in millions)