Wake Forest Baptist Fiscal Year 2018 Third Quarter Performance

May 30, 2018

STATEMENT

By: Bradley A. Clark, M.B.A., Executive Vice President and Chief Financial Officer, Wake Forest Baptist Medical Center

Re: FY18 Q3 Financial Performance

May 30, 2018

Wake Forest Baptist Medical Center released its third quarter report on operating performance and operating statistics for fiscal year 2018 (FY18) today and stated improvements in key areas primarily driven by volume growth in the clinical enterprise, the addition of Wilkes Medical Center and yield improvements. Continued efforts toward improving patient access with afterhours care and expansion of service offerings at community hospitals are underway.

Unrestricted net assets increased $106.1 million for the nine-month period (July 1, 2017 – March 31, 2018). This gain is comprised of operating income of $30.7 million (1.5% operating margin) and net non-operating gains of $75.4 million.

Total net revenues of $2,113.7 million were 6.9% higher than the prior year.

Overall clinical volume saw a 3.3% year-over-year growth in case mix adjusted equivalent discharges (CMAEDs). Increased system inpatient admissions, outpatient volumes, and operating room cases contributed to the year-over-year growth.

Inpatient utilization or system inpatient case mix adjusted discharges increased when compared to the prior year due to an increase in discharges (5.9%) offset by a slight decrease in case mix index (1.6%). Both year-over-year changes were driven by the addition of Wilkes Medical Center, which increased system discharges while reducing case mix index.

Surgical volumes grew 8.7% compared to the prior year, driven by 6.6% growth in inpatient cases and a 9.9% growth in the outpatient setting. Higher case volume was primarily driven by the expansion of ambulatory facilities and the addition of Wilkes Medical Center.

Outpatient volumes overall continued to show strong growth with a 9.0% increase over the prior year. This growth is attributable to the migration of treating patients in an observation setting, improvements in ambulatory and diagnostics access, and the addition of Wilkes Medical Center.

On March 8, 2018, Wake Forest Baptist and UNC Health Care, the parent organization of High Point Regional Health, announced that they have signed a binding agreement that advances the process to transition ownership of High Point Regional from UNC Health Care to Wake Forest Baptist. Leadership and work teams from both Wake Forest Baptist and High Point Regional Health are diligently working together to take the necessary steps toward full integration which is anticipated early this fall.

  • View Full FY18 Q3 Financial Statement

Media Relations

Paula Faria: pfaria@wakehealth.edu, 336-716-1279

Joe McCloskey: jmcclosk@wakehealth.edu, 336-716-1273