University, MCG hospitals prospering

Both University Hospital and Medical College of Georgia Hospital and Clinics are faring better than expected financially this year.

The boards of both health systems met separately Thursday. University was more than $3 million ahead of budget on total revenue and about $700,000 ahead of budget on income from operations through the end of March.

The health system is looking at healthier volumes in certain areas, such as surgeries, and there are “lots of downstream revenues from surgeries,” said Chief Financial Officer Dave Belkoski.

The hospital is surpassing the 5 percent margin goal it set, CEO Jim Davis said.

Because its fiscal year begins in July, MCG health system was looking at nine months of data. While net patient service revenues were off about $3 million from budget, the health system benefited from slightly higher indigent care payments, an increase in other operating revenue and expenses coming in under budget by more than $1 million.

That pushed the margin from a budget of $10.7 million to nearly $13 million.

Officials credited increases in inpatient and ambulatory surgeries and a more favorable payor mix.

The health system was aided in last year’s finances by $14 million in previous year revenue that is not there this year, so the results are a true reflection of performance, said David Hefner, the executive vice president for clinical affairs.

“We hope that these trends will continue,” said Georgia Health Sciences University President Ricardo Azziz, who serves as chairman of the health system’s boards.

IN OTHER ACTION

• Medical College of Georgia officials got an update on the health information exchange system that is being developed in collaboration with Medical Center of Central Georgia in Macon and others. The Georgia Regional Academic Community Health Information Exchange is seeking other partners, including the mental health system in Georgia and Augusta hospitals such as University Hospital.

• University honored longtime board member and chairman R. Lee Smith Jr., who has served on University boards since 1985 and was made chairman in 2000. He was given the title of chairman emeritus and received a standing ovation during the meeting.

More