Preliminary report: UMass Memorial Health Care in the black
UMass Memorial Health Care (UMMHC) will post a $29 million operating surplus in fiscal 2014, according to preliminary results the Worcester-based health care system shared with bond investors this week.
The unaudited financials, which will be finalized in December, signal that the system has been able to stay afloat through shedding services and cutting jobs over the last two years, in order to make the system more efficient, according to UMMHC.
That included the $107 million sale of its outreach laboratory business to Quest Diagnostics in 2013, as well as the closing of hospital units and the reduction of about 400 full-time equivalent positions. The sale of Wing Memorial Hospital in Palmer to Springfield-based Baystate Health was also scheduled to close in September.
According to UMMHC, payments also increased in fiscal 2014, rising to $2.2 billion, compared with over $2 billion in fiscal 2013. But the system’s net profit is expected to total $61 million in fiscal 2014, including investment income. That’s down from $72 million last year, as UMMHC spent $16.4 million on reducing its workforce.
UMMHC officials declined to comment on the preliminary results through spokesman Anthony Berry, but Dr. Eric Dickson, CEO of UMMHC, said fiscal 2014 operating results are due in part to efforts to improve quality.
“In 2014 we instituted more than 7,000 ideas from the frontline staff that helped us improve the quality of care we deliver to our patients as is evident from our extremely successful Joint Commission survey, and our financial position, as is evident by our just released 2014 preliminary financial summary,” Dickson said.” I am incredibly proud of the resilience and commitment our caregivers showed this past year. We look forward to discussing our final, audited financial statements upon completion in December.”
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