ANN ARBOR – Michigan Medicine anticipates positive financial results for fiscal year 2022, with a projected $233 million operating margin -- or 4.2% -- on a forecasted $5.5 billion in operating revenues.
The results include University of Michigan Health’s performance in fiscal 2022. U-M Health is Michigan Medicine’s clinical branch that includes five hospitals, the U-M Medical Group, U-M Health-West and 125 clinics.
The results were presented by president of U-M Health and executive vice dean for clinical affairs, David C. Miller, during the June 16 Board of Regents meeting.
“These results reflect the resiliency of our teams,” Miller said in a statement. “We focused this year on our mission to advance health care as we continued to face challenges presented by COVID-19. Despite patient surges, supply chain shortages and employee recruitment challenges, we’ve continued to maintain our high standards of quality and safety for both our patients and staff.”
CEO of Michigan Medicine and dean of the U-M Medical School, Marschall S. Runge, credited the health system’s staff for the positive results.
“From dealing with the Omicron surge, to weathering supply chain issues and managing workforce shortages, the people of Michigan Medicine remained committed to being a health care provider of choice in the state of Michigan,” Runge said in a statement. “It is their dedication, talent and commitment to the highest standards of patient care that allowed us to reach the financial results we report today.”
During their regular meeting, the Regents also approved a 4.1% operating margin on revenues of $5.9 billion for the fiscal year 2023, which begins on July 1.
Miller said the financial performance will allow the health system to continue its many projects, including construction of its new 12-story hospital The Pavilion which will feature 264 private rooms and is slated to open in fall 2025.
Another project includes a new facility in Dexter with a focus on specialty and mail pharmacy services. The expansion will allow Michigan Medicine to fill more than double the prescriptions it fills annually in its in-house pharmacy.
“We have a relentless focus on continuous improvement and innovation to provide high quality care, ensure an exemplary experience for our patients, support our incredible teams, and ensure financial sustainability,” Miller said in a release. “We expect the next year to bring some of the same problems we’ve faced this year – recruitment and retention of our workforce, continuing inflation and rising costs and continued management of pandemic care.
“But we are confident in our plan because we know we can rely on the people that make up Michigan Medicine.”