Wake Forest Baptist Fiscal Year 2016 First Quarter Financial Performance
Eckes, M.B.A., Chief Financial Officer, Wake Forest Baptist Medical Center
Re: FY16 Q1 Financial Performance
November 17, 2015
Wake Forest Baptist Medical Center released
its first quarter earnings Tuesday and reported operating performance for the
first three months of fiscal year 2016 (FY16) improved over the same period
last year. Operating income through the first quarter was $12.6 million or a 2.2%
operating margin compared to prior year’s operating margin of 1.2%.
Total net revenues increased 10.4% higher than
the prior year to $567.2 million. Underlying patient revenues improved 12.6%
over the same period last year due to growth in clinical volumes and yield improvements.
The Medical Center incurred net non-operating losses
of $56.9 million primarily attributed to first quarter investment losses driven
by overall equity market declines in the first quarter. This net non-operating loss
offset by operating income of $12.6 million led to Wake Forest Baptist reporting
a loss in unrestricted net assets of $44.3 million in the first quarter of
Medical Center utilization improvement seen in
FY15 continued in the first quarter of FY16.
inpatient admissions increased by 2.6% compared to prior year, while operating
room cases across the health system increased by 0.3% over prior year with
growth in outpatient settings of 2.9% and softening in inpatient settings of
4.4%. This trend is consistent with the strategy to migrate operating room
volume from inpatient to outpatient where possible. The surgical volume was primarily driven by
the growth of the new Davie Medical Center, the expansion of ambulatory
facilities and operating room capacity management strategies, while patient
access improvement marked by growth in emergency department visits and
ambulatory clinic visits drove increases in inpatient admissions.
System Emergency Department visits of 39,934
represented a 1.8% increase over prior year. The expansion of Wake Forest
Baptist multi-specialty clinics and urgent care centers in Clemmons and Davie
have increased access points for care and provides appropriate care settings
while supporting growth.
Outpatient volumes continued to show strong
growth with an 11.7% increase over the prior year.
Wake Forest Baptist is a national leader in
patient quality and is continuing the transformation of its operating and cost
structure to leverage the quality of its clinical faculty and staff. Wake
Forest Baptist is honored to have 325 physicians named to the prestigious
2015-2016 “Best Doctors in America” list; this is a 17 percent increase over last
year. The Wake Forest Baptist physicians on this list work in 37 specialties;
59 of the doctors are pediatric specialists at Brenner Children's Hospital,
part of Wake Forest Baptist. North Carolina has 1,690 physicians on the
2015-2016 Best Doctors list and 23% of those doctors are from Wake Forest
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