STATEMENT
By: John D. McConnell, M.D., CEO, Wake Forest Baptist
Medical Center
Re: FY15 Q2 Financial Performance
Feb. 24, 2015
Wake Forest Baptist Medical Center released its second quarter earnings Monday and reported a gain in unrestricted net assets of $8.1 million for the six months ended December 31, 2014. This gain is comprised of an operating income of $19.2 million and net non-operating losses of $11.1 million.
In recent months, Wake Forest Baptist has realized significant improvements in operating performance. Management has implemented strategies and processes to restore financial performance and enhance existing programs aimed at providing a value-based academic health care model with emphasis on safety, service and quality.
Medical Center utilization continued to improve for the year-to-date period driving total net revenues of $1.05 billion, a 9.5% increase over the same period for the prior year. Underlying patient revenues improved over the same period last year due to growth in inpatient admissions, surgical cases, physician work relative value units (RVUs), and other outpatient volume.
Operating income for the quarter was $19.2 million or 1.8% compared to prior year of -2.4%. Operating earnings before interest depreciation and amortization (EBIDA) margin was $92.1 million or 8.8% for the quarter compared to prior year of 3.9%.
Across all entry points, patient volumes continued to improve through the second quarter. Wake Forest Baptist generated overall volume growth with a 17.1% year over year growth in case mix adjusted equivalent discharges (CMAEDs). Our President and Chief Operating Officer, Dr. Bobbi Carbone, brought significant focus on improving patient access and enhancing provider throughput. We are very appreciative of the dedicated work of our staff and faculty in the past year to not only maintain the exceptional quality that was already present but also to improve processes that make our services more available to patients and consumers across the region. Our teams have dedicated themselves to exceptional teamwork and patient centered care of which we are very proud.
System inpatient admissions increased by 10.7% compared to prior year, while operating room cases increased by 6.3% over prior year with growth in both inpatient and outpatient cases. The growth of the new Davie Medical Center, the expansion of ambulatory facilities and operating room capacity management strategies primarily drove the higher case volume. System Emergency Department visits of 79,696 represented a 7.0% increase over prior year.
The recent openings of several Wake Forest Baptist multi-specialty clinics and urgent care centers in Clemmons and Davie have increased service offerings for emergent care in the past year while effectively moving ED volume to lower cost settings and supporting core growth. Outpatient volume has continued to show strong growth with a 7.8% increase over the prior year.
Wake Forest Baptist remains a national leader in patient quality and is continuing the transformation of its operating and cost structure to leverage the quality of its clinical faculty and staff.
- View Full FY15 Q2 Financial Statement
Media Relations
Paula Faria: pfaria@wakehealth.edu, 336-716-1279
Mac Ingraham: mingraha@wakehealth.edu, 336-716-3487