The University of Toledo Medical Center ended the fiscal year $4 million positive and established a one-time capital reserve to invest in the hospital.
During a report to the UToledo Board of Trustees at its regular meeting on Sept. 22, UTMC Chief Financial Officer Troy Holmes shared publicly the performance update for the hospital through fiscal year 2021 that ended June 30. UTMC ended the year with operating revenues exceeding budget by more than $48 million, which more than covered increased operating expenses for the year and provided funding to establish a one-time capital reserve of $21 million. The hospital also received during the fiscal year $28 million in COVID-19 stimulus funding to offset increased expenses due to the pandemic.
Holmes explained to the board the improved revenues are a result of better coding and increased staffing in the billing department, an improved case mix index supported by software for better physician documentation, an enhanced relationship between University of Toledo Physicians group and the hospital and between the Toledo Clinic and UTMC Eleanor N. Dana Cancer Center, and expansion of the 340B program led by the pharmacy. UTMC also improved operating room efficiency, renegotiated contracts, established new and expanded existing service lines, and reorganized clinic services that included a consolidation of a call center.
UTMC’s stabilization also was supported by increased marketing efforts with the launch of the “Open for You” campaign in November to communicate the hospital’s commitment to providing care to the community.
The operating performance of the hospital provided an opportunity to create a $21 million capital reserve. The funding is planned to be used to support, in part, the conversion to the new EPIC electronic medical record system for the hospital. Additional funding will support anticipated capital projects that include a new cardiac procedure room, radiology room upgrade, additional operating room equipment, new ultrasound machines, ventilators and patient room furniture. UTMC also plans to acquire a new patient monitoring system and nuclear medicine camera.
UToledo ended the fiscal year with a balanced budget and a reinvestment fund to support the 2020-22 key initiatives identified by UToledo President Gregory Postel focused on increasing efficiencies, addressing operational challenges and embracing innovative ideas to prepare UToledo for the future. The investment allocations will primarily support teaching and student success, faculty and staff support and development, and academic research and scholarship.
In other business, the UToledo Board of Trustees approved a contract for the abatement and demolition of Carter Hall. Removing the former residence hall is part of the Multiple Campus Master Plan approved in 2017.
Carter West was built in 1964 and Carter East in 1965. The residence halls, which housed 535 beds, were last in full operation in spring 2015.
Trustees also approved the annual candidates for degrees for commencement ceremonies during the academic year. The fall commencement will take place Saturday, Dec. 18 and spring commencement will be Saturday, May 7. The College of Law will graduate students Sunday, May 8 and the College of Medicine and Life Sciences will hold its graduation on Friday, May 20.