By: Bradley A. Clark,
M.B.A., Executive Vice President and Chief Financial Officer, Wake Forest Baptist
Re: FY18 Q2 Financial
Feb. 28, 2018
Forest Baptist Medical Center released its second quarter report on operating
performance and operating statistics for fiscal year 2018 (FY18) today and
stated improvements in key areas primarily driven by volume growth in the
clinical enterprise, the addition of Wilkes Medical Center and yield
improvements. Continued efforts toward improving patient access with afterhours
care and expansion of service offerings at community hospitals are underway.
net assets increased $118.5 million for the six-month period (July
1, 2017 – December 31, 2017). This gain is comprised of operating income of
$33.8 million (2.4% operating margin) and net non-operating gains of $84.7
net revenues of $1,406.5 million were 8.5% higher than
the prior year.
clinical volume saw 4.1% year-over-year growth in case mix
adjusted equivalent discharges (CMAEDs). Increased system inpatient discharges,
outpatient volumes, and operating room cases contributed to the year-over-year
utilization or system inpatient case mix adjusted
discharges increased when compared to the prior year due to an increase in
discharges (4.9%) offset by a slight decrease in case mix index (1.6%). Both
year-over-year changes were driven by the addition of Wilkes Medical Center,
which increased system discharges while reducing case mix index.
volumes grew 7.6% compared to the prior year, driven by 6.2%
growth in inpatient cases and an 8.5% growth in the outpatient setting. Higher
case volume was primarily driven by the expansion of ambulatory facilities and
the addition of Wilkes Medical Center.
volumes overall continued to show strong growth with a 10.8%
increase over the prior year. This growth is attributable to the migration of
treating patients in an observation setting, improvements in ambulatory and
diagnostics access, and the addition of Wilkes Medical Center.
February 2, 2018, Wake Forest Baptist and Hugh Chatham Memorial Hospital
announced a partnership to ensure the future of Alleghany Memorial Hospital
(AMH). Under the agreement, Wake Forest Baptist and Hugh Chatham create a 50-50
joint venture called Alleghany Health, LLC, which will become the full owner of
AMH. The goal of the joint venture is to ensure fiscal stability for AMH and to
enhance coordination of patient care and access to clinical services across the
October 25, 2017, Wake Forest Baptist and UNC Health Care, the parent
organization of High Point Regional Health, signed a Letter of Intent in which
Wake Forest Baptist would acquire and integrate High Point Regional and its
affiliates into the regional health care system with an expected close in the
third quarter of 2018.