By: Bradley A. Clark, M.B.A., Executive Vice President
and Chief Financial Officer, Wake Forest Baptist Medical Center
Re: FY18 Q3 Financial Performance
May 30, 2018
Wake Forest Baptist Medical Center
released its third 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.
Unrestricted net assets increased $106.1 million for the nine-month period (July 1, 2017 – March
31, 2018). This gain is comprised of operating income of $30.7 million (1.5%
operating margin) and net non-operating gains of $75.4 million.
Total net revenues of $2,113.7 million were 6.9% higher than the prior year.
Overall clinical volume saw a 3.3% year-over-year growth in case mix adjusted equivalent
discharges (CMAEDs). Increased system inpatient admissions, outpatient volumes,
and operating room cases contributed to the year-over-year growth.
Inpatient utilization or system inpatient case mix adjusted discharges increased when compared
to the prior year due to an increase in discharges (5.9%) 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.
Surgical volumes grew 8.7% compared to the prior year, driven by 6.6% growth in inpatient
cases and a 9.9% growth in the outpatient setting. Higher case volume was
primarily driven by the expansion of ambulatory facilities and the addition of Wilkes
Outpatient volumes overall continued to show strong growth with a 9.0% 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.
On March 8, 2018, Wake Forest Baptist
and UNC Health Care, the parent organization of High Point Regional Health,
announced that they have signed a binding agreement that advances the process
to transition ownership of High Point Regional from UNC Health Care to Wake
Forest Baptist. Leadership and work teams from both Wake Forest Baptist and
High Point Regional Health are diligently working together to take the
necessary steps toward full integration which is anticipated early this fall.