Does UM Need JA? (Junior Achievement)
Which brings to mind the New Testament parable bemoaning hypocrites who bitch about the splinter in their neighbor's eye while ignoring the two-by-four in their own.
Earlier this week UM Med School COO loudly wondered if Jackson was “in a (fiscal) slide that it can pull out of”?
Fair question, given UM's years as a teaching partner with Jackson.
However, the numbers suggest the UM Med School official blithely ignored the apparent fiscal crisis in his own backyard.
How so?
It's been two years since UM bought the 560-bed Cedars Medical Center paying some $260 million to it's for-profit owners HCA .
That was in December of 2007 – when Cedars reported a meager “bottom line” after taxes profit of $777,770 under HCA's ownership.
The following year, under UM management, the 560-bed hospital reported a “bottom line” loss of $11,534,612 – and this sans taxes.
Why?
Basically, UM Med School officials blew the basic rule of business as taught to high school students who join Junior Achievement to learn the fundamentals of the free enterprise system
Like Your revenues should exceed your expenses
Anyhow...
What follows are a few dismal numbers comparing the hospital's last year under HCA ownership versus its first year under UM's management team – plus similar numbers for the average Florida hospital:
2007 2008
As Cedars As U of M
Medical Medical
Beds 560 560 0%
Occupancy 43.7% 24.5%
Adjusted
Patient Days 110,317 61,038 (44.7%)
Staff FTE 1,049 602 (42.6%)
Average Daily
Patient Census 245 137 (44.1%)
Uninsured 13 10 (23.1%)
Medicaid 41 11 (73.2%)
% low income 22% 15%
% state avg. 22% 20%
Gross Charges
Per Adj. Pat. Day $6,589 $7,507 13.9%
Avg. State Hospital $6,851 $7,177 4.7%
Deductions for
Bad Debt
Per Adj. Pat. Day $102 $309 202.9%
Avg. State Hosp. $255 $260 1.9%
Charity Care
Per Adj. Pat. Day $153 $81 (47.1%)
Avg. State Hosp. $291 $319 9.6%
Net. Patient Revenue
Per Adj. Pat. Day $1,517 $1,590 4.8%
Avg. State Hosp. $1,692 $1,787 5.6%
Op. Expenses
Per Adj. Pat. Day $1,579 $1,788 13.2%
Avg. State Hosp. $1,725 $1,775 2.9%
Surplus (Loss)
Per Adj. Pat. Day $7.05 ($185.87) (2736%)
Avg. State Hosp. $98.14 $48.01 (51.1%)
NOTE: An Adjusted Patient Day is a baseline used
by the nation's healthcare industry to reflect a hospital's
inpatient and outpatient population.
SOURCE: Agency for Health Care Administration
STAY TUNED - BECAUSE MONDAY THE NUMBERS ARE WORSE.
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