Tennessee’s Vanderbilt University Medical Center hit some rough patches in 2018, like costly healthtech management services installation, but it still managed to perform well for the year.
The non-profit medical centre managed to generate $74 million in operational income, as well as $2.2 billion worth of revenue within the six months that ended the end of December 201, which is a notable increase of $30.6 million in operating income, alongside $2 billion worth of revenue within the same time period in the preceding year. In that same time, expenses went up to 6%, to $2.1 billion.
The medical centre’s went up by 8%, and is attributed, primarily, to an increase in patient service revenue, according to the narrative section of Vanderbilt’s financial results. The report noted that the primary reason for increases in expenses is due to salaries, wages and benefits, drug costs and medical supplies.
According to the medical centre’s report, their YTD FY19 operational results is a reflection of their focus on increasing the centre’s net revenue from patient service, all while keeping their variable and fixed costs on a leash, evidence by the data, which showed that the centre’s expenses only went up by 6%, but the centre’s revenue, as well as net patient revenue, grew by 8%.
Vanderbilt didn’t offer other comments on the issue, but the centre has shown signs of recovering from the recent healthtech management services installation in 2017, a $214 million project that cut into operational income.
The CMS in November also told Vanderbilt that they would be stripped of their Medicare funding following an issue of the centre not properly reporting the accidental death of a patient, but that warning was rescinded after the centre submitted their plans for correction, as well as improvement.
According to Cecelia Moore, Chief Financial Officer in Vanderbilt, the organisation still sees a lot of demand for their services and they have ironed out issues that stemmed from the installation of the new EHR. She adds that problems that risked getting their Medicare removed have been dealt, stopping it from impacting the centre’s volume within the latter half of 2018.