KeepHealthCare.ORG – MU Health Care exceeds revenue expectations but seeks improvements | Higher Education
MU Health Care hospitals have treated more patients and earned $58 million more than expected so far this year.
“We are running favorable in almost all of the metrics,” said CFO Tony Blair Monday in a presentation to the UM Board of Curators Health Affairs Committee. “We’re running favorable today. We’ve got to continue running favorable in the future.”
He warned that the hospitals are running near capacity and about half of the beds are at least 50 years old.
“We’re going to have to, at some point here, reinvest back into the system,” Blair said. “And that’s expensive.”
He said paying for hospital upgrades would create a cycle where the financial metrics would drop for a while before returning to high revenues once the hospitals are operating at a higher capacity than before.
In addition to capital improvements, some of the additional revenue will go toward the School of Medicine.
Blair said MU Health Care will likely invest $6 million more in the School of Medicine than expected this year.
Even with the high revenues, UM System President Mun Choi encouraged MU Health Care officials to focus more energy on philanthropic support as a way to further increase funding. He called MU Health Care “the most important financial organization at the university.”
Blair started work as the chief financial officer of MU Health Care last month, and this was his first Health Affairs Committee meeting.
He was most recently the vice president for financial affairs at University of Minnesota Health.
The Health Affairs Committee also continued discussing the proposed restructuring of the Health Care Board in order to streamline the governance of and coordination between the academic and medical sides of the system.
The proposed structure would eliminate the Health Care Advisory Board, which advises Choi on health care issues, in favor of giving the president a permanent position on the Health Affairs Committee.
The redesigned committee would consist of the UM System president, MU chancellor, one curator, one representative of the Capital Region Medical Center and five members appointed by the curators. The committee would advise MU Health Care on long-term strategy, hire and fire the CEO and approve finances.
The chancellor would serve as the connecting piece between academic affairs and the committee. The Board of Curators would continue to have the final say in all major decisions.