Wake Forest Baptist Fiscal Year 2016 Second Quarter Financial Performance
By: Chad Eckes, M.B.A., Chief Financial Officer, Wake
Forest Baptist Medical Center
Re: FY16 Q2 Financial Performance
Forest Baptist Medical Center released its second quarter report on operating
performance and operating statistics for the first six months of fiscal year
2016 (FY16), which shows continued improvement over the same period last year.
income through the second quarter, which ended December 31, 2015, was $27.6
million or a 2.4% operating margin driven by higher clinical volumes, increased
access points for care, improved cost management strategies and enhanced clinician
productivity. This higher margin compares to the prior year’s operating margin
Forest Baptist reported a net non-operating loss of $50.2 million primarily
attributed to year-to-date investment losses driven by overall declines in the
equity market. This net non-operating loss offset by operating income of $27.6
million led to the Medical Center reporting a loss in unrestricted net assets
of $22.6 million.
Patient volumes across all
entry points continued to improve through the second quarter.
Thanks to our dedicated
faculty and staff, Wake Forest Baptist generated overall clinical volume growth
with a 9.5% year-over-year increase in case mix adjusted equivalent discharges
Our total net revenues of
$1.1 billion were 9.2% higher than the prior year. Although market declines
earlier in the fiscal year overshadow our operating performance, our planned long-term
investments saw gains begin to return during the second quarter.
Forest Baptist handles over 1.1 million patient visits annually and employs
over 1,000 physicians. Its degree-granting educational programs annually train
over 1,800 students in health care-related fields and it receives nearly $200
million annually in research funding from federal and state agencies, industry
and other sources.2/29/2016http://www.wakehealth.edu/News-Releases/2016/Wake_Forest_Baptist_Fiscal_Year_2016_Second_Quarter_Financial_Performance.htm
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