Michigan Medicine reported projected positive fiscal year-end results today, with an anticipated 4.2 percent ($233 million) operating margin on forecasted operating revenues of $5.5 billion.
The results include fiscal 2022 performance from University of Michigan Health, the organization’s clinical branch that includes five hospitals, 125 clinics and the U-M Medical Group, as well as UM Health-West.
David C. Miller, M.D., M.P.H., presented the projected results for the fiscal year that ends June 30, along with the fiscal 2023 plan, to the U-M Board of Regents during its regular meeting.
“These results reflect the resiliency of our teams. We focused this year on our mission to advance health care as we continued to face challenges presented by COVID-19,” said Miller, who is president of University of Michigan Health and executive vice dean for clinical affairs.
“Despite patient surges, supply chain shortages and employee recruitment challenges, we’ve continued to maintain our high standards of quality and safety for both our patients and staff.”
Marschall S. Runge, M.D., Ph.D., expressed gratitude to Michigan Medicine employees who have successfully managed both the ongoing COVID-19 pandemic and the pandemic-related issues that created a volatile healthcare environment.
“From dealing with the Omicron surge, to weathering supply chain issues and managing workforce shortages, the people of Michigan Medicine remained committed to being a health care provider of choice in the state of Michigan,” said Runge, who is CEO of Michigan Medicine, dean of the U-M Medical School and executive vice president for medical affairs for the University of Michigan.
“It is their dedication, talent and commitment to the highest standards of patient care that allowed us to reach the financial results we report today.”
Miller said focusing on inclusion and teamwork allowed Michigan Medicine to successfully manage continued COVID-19 issues, but at the same time introduce new initiatives to improve access.
One of these initiatives, the Care at Home program, offers patients hospital-level care combined with the opportunity to recover at home. The Care at Home program provides eligible patients with the option to receive nurse and physician visits, plus a wide array of tests, treatments and monitoring, in their homes. That means some hospitalized patients are able to return home sooner to receive care in familiar surroundings, closer to loved ones.
The Regents also approved a budget that sets Michigan Medicine financial performance targets for the fiscal year that begins July 1. The fiscal year 2023 plan aims for a 4.1 percent operating margin on revenues of $5.9 billion.
This financial performance allows Michigan Medicine to continue to invest in people, technology and facilities, such as the construction of a new hospital, called The Pavilion, Miller said. The new 12-story hospital will house 264 private rooms capable of converting to intensive care, a state of the art neurological and neurosurgical center, high-level specialty care services for cardiovascular and thoracic patients and advanced imaging services. Construction resumed on the 690,000-gross-square-foot building last spring and it is expected to open in fall 2025.
Also planned is a major expansion into specialty and mail pharmacy services, located at a new facility in Dexter. The expansion will allow Michigan Medicine to more than double the number of prescriptions it fills each year through its existing in-house pharmacy.
“We have a relentless focus on continuous improvement and innovation to provide high quality care, ensure an exemplary experience for our patients, support our incredible teams, and ensure financial sustainability,” Miller said. “We expect the next year to bring some of the same problems we’ve faced this year – recruitment and retention of our workforce, continuing inflation and rising costs and continued management of pandemic care.”
“But we are confident in our plan because we know we can rely on the people that make up Michigan Medicine,” Miller said.
About Michigan Medicine: At Michigan Medicine, we advance health to serve Michigan and the world. We pursue excellence every day in our three hospitals, 125 clinics and home care operations that handle more than 2.3 million outpatient visits a year, as well as educate the next generation of physicians, health professionals and scientists in our U-M Medical School.
Michigan Medicine includes the top ranked U-M Medical School and the University of Michigan Health, which includes the C.S. Mott Children’s Hospital, Von Voigtlander Women’s Hospital, University Hospital, the Frankel Cardiovascular Center and the Rogel Cancer Center. The U-M Medical School is one of the nation's biomedical research powerhouses, with total research funding of more than $500 million.
More information is available at www.michiganmedicine.org
Department of Communication at Michigan Medicine