STATEMENT
By: Chad Eckes, M.B.A., Chief Financial Officer, Wake
Forest Baptist Medical Center
Re: FY16 Q2 Financial Performance
Feb.
29, 2016
Wake Forest Baptist Medical Center released its second quarter report on operating performance and operating statistics for the first six months of fiscal year 2016 (FY16), which shows continued improvement over the same period last year.
Operating income through the second quarter, which ended December 31, 2015, was $27.6 million or a 2.4% operating margin driven by higher clinical volumes, increased access points for care, improved cost management strategies and enhanced clinician productivity. This higher margin compares to the prior year’s operating margin of 1.8%.
Wake Forest Baptist reported a net non-operating loss of $50.2 million primarily attributed to year-to-date investment losses driven by overall declines in the equity market. This net non-operating loss offset by operating income of $27.6 million led to the Medical Center reporting a loss in unrestricted net assets of $22.6 million.
Patient volumes across all entry points continued to improve through the second quarter.
Thanks to our dedicated faculty and staff, Wake Forest Baptist generated overall clinical volume growth with a 9.5% year-over-year increase in case mix adjusted equivalent discharges (CMAEDs).
Our total net revenues of $1.1 billion were 9.2% higher than the prior year. Although market declines earlier in the fiscal year overshadow our operating performance, our planned long-term investments saw gains begin to return during the second quarter.
Wake Forest Baptist handles over 1.1 million patient visits annually and employs over 1,000 physicians. Its degree-granting educational programs annually train over 1,800 students in health care-related fields and it receives nearly $200 million annually in research funding from federal and state agencies, industry and other sources.
- View full FY16 Q2 Financial Statement
Media Relations
Paula Faria: pfaria@wakehealth.edu, 336-716-1279
Mac Ingraham: mingraha@wakehealth.edu, 336-716-3487