Wake Forest Baptist Fiscal Year 2017 Second Quarter Financial Performance

February 28, 2017

STATEMENT

By: Chad Eckes, M.B.A., Executive Vice President, Corporate Services and

Chief Financial Officer, Wake Forest Baptist Medical Center

Re: FY17 Q2 Financial Performance

Feb. 28, 2017

Wake Forest Baptist Medical Center released its second quarter report on operating performance and operating statistics for fiscal year 2017 (FY17) today and reported improvements in key areas primarily driven by volume growth in the clinical enterprise.

Unrestricted net assets increased $46 million for the six month period (July 1, 2016 – December 31, 2016). This gain is comprised of operating income of $26.7 million and net non-operating gains of $19.3 million.

Total net revenues of $1.3 billion were 12.7% higher than the prior year.

Overall clinical volume saw 3.0% year-over-year growth in case mix adjusted equivalent discharges (CMAEDs). Reflective of growth from the acquisition of Cornerstone Health Care, clinic visits increased 49.1% compared to the prior year including non-Cornerstone clinics that also grew 3.2% compared to the prior year.

Inpatient utilization or system inpatient case mix adjusted discharges were flat compared to prior year due to a slight decline in discharges offset by an increase in case mix index. The slight decline in discharges was driven by the continued migration of lower acuity patients being treated in an observation setting. Observation volumes increased 8.8%.

Surgical volumes increased across the health system with operating room cases up by 4.6% over prior year, growth in inpatient cases of 3.8% and growth in the outpatient setting of 5.0%.

Outpatient volumes overall continued to show strong growth with a 10.5% 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, clinician and staff productivity, expansion of outpatient facilities and the Cornerstone acquisition.

Wake Forest Baptist’s annual outpatient visits exceed 1.2 million. Its degree-granting educational programs annually train over 1,900 students in health care-related fields and it receives nearly $170 million annually in research funding from federal and state agencies, industry and other sources.

  • View Full FY17 Q2 Financial Statement

Media Relations

Mac Ingraham: mingraha@wakehealth.edu, 336-716-3487

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