Planning underway to stabilize hospital finances and examine future options
Facing the same economic realities of a rapidly evolving healthcare industry that confront most independent hospitals, The University of Toledo is thoroughly examining the operations and services of The University of Toledo Medical Center (UTMC) in the context of the current healthcare environment. This is being undertaken to determine the best options moving forward for the well-being of the University, its faculty, staff and students, and the Toledo community.
In recent years, UTMC has responded to the changing demographics and healthcare needs of our community by increasing its focus on primary care with the opening of the Comprehensive Care Center (2019), transitioning its Trauma Center to a Level 3 facility (2019) and expanding behavioral health services with the addition of an in-patient detoxification unit (2017).
“We have been investing in UTMC to help strengthen and expand the services most needed in our region because it is the right thing to do for our employees and the right thing to do for our neighbors,” UToledo President Sharon L. Gaber said. “During this time, we’ve also been closely monitoring the hospital’s financial health. We recognize the challenges at hand and have outlined a process to evaluate options for the future of UTMC.”
The University previously shared that the hospital’s losses for fiscal year 2018 totaled $3.5 million and grew to $7 million in fiscal year 2019. Halfway through the current fiscal year UTMC losses stand at $12.6 million, as reported by UTMC CEO Dan Barbee and UToledo CFO Matt Schroeder to the trustees on Monday.
“Unfortunately, the hospital is in an unsustainable financial position in its current model,” UToledo Board of Trustees Chair Mary Ellen Pisanelli said. “We are determined to work with a sense of urgency to address the hospital’s current financial situation and consider all options for UTMC moving forward. We will be as transparent and inclusive as possible throughout this process.”
UToledo has engaged advisors to review UTMC’s financial information, current service lines, market conditions and changing community needs, current and projected healthcare industry trends and more.
The process is expected to take several months.
If you have any questions to direct to the Board of Trustees, please submit them in writing to BOT@utoledo.edu.