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Financial update

Financial update. Preliminary FY13 September Results: HHC September Operating Margin: ( $11.6M) Year to Date Operating Margin: ($25.4M) MS September Total Margin: ($10.2M) Year to Date Total Margin: ($23.4M). Financial update: HHC .

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Financial update

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  1. Financial update Preliminary FY13 September Results: • HHC • September Operating Margin: ($11.6M) • Year to Date Operating Margin: ($25.4M) • MS • September Total Margin: ($10.2M) • Year to Date Total Margin: ($23.4M)

  2. Financial update: HHC HHC FTE Trend Actual versus Departmental Forecasts

  3. Financial update: HHC HHC Appointed FTEs by Operational Group

  4. Financial update: HHC Revenue for the clinical labs has grown more than expenses. Our current challenge is to achieve an additional 2.5% savings:

  5. Financial update: HHC Immediate $ Value Impact High Management Pay Policies FTE Layoffs / Reductions in Force Contractor Exit / New Contractor Freeze “2% Solution” Expense Reductions “Differentiated Solution” Targeted Expense and Productivity FTE Overtime Caps Supply Chain Optimization Implementation Effort Challenging Implementation Effort Easier FTE Hard Freeze on all positions Capital Freeze on Select Investments Travel / ConferenceFreeze Immediate $ Value Impact Lower 5

  6. Financial update: Medical School FY03 – FY13 All Funds Total Margin

  7. Financial update: Medical School • Balancing our new investments while also addressing structural expense difficulties creates several challenges • To meet our margin targets in the future, we must: • Continue healthy growth of the Clinical Operating Margin • Focus on productive use of research space • Focus on unproductive internally supported research time • Relentlessly strive to drive out waste • Ensure the success of the UMHS Development reorganization • Work w/ campus on appropriate funds flow changes • Continue to partner w/ the HHC to ensure financial success for all of UMHS

  8. Financial update: Medical School

  9. Financial update: Department New departmental revenue (versus 2005):* Professional component billing $1,100,000/yr Part A renegotiation $900,000/yr MLabs margin improvement $850,000/yr *Does not include increases in space productivity, philanthropy, Medical School or HHC commitments to Department, or potential revenue from new business ventures and partnerships

  10. Financial update: Department New departmental expenses/revenue reduction :* NCRC $580,000/yr FAMIII $900,000/yr Development $300,000/yr Impact of 10% “exercise” $1,892,146/yr *Does not include salary expenses for incremental faculty, clinical fellows, staff, salary increases, startups, other academic commitments, Paradigm investment, other expenses

  11. Financial update: Department Implications : We will need to identify about $1.9 million in expense reduction/revenue enhancement (3.8% of operating budget) We are currently working with the Division Directors and Section heads to develop a plan We will be as equitable as possible We will keep you informed We are committed to excellence in our three missions

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