publication date: Jun. 2, 2017
MD Anderson posts four months of positive operating margins as deficit shrinks to $43.9 million
By Paul Goldberg
MD Anderson Cancer Center reported positive operating margins after posting losses over the first four months of the fiscal year.
Between September and December, the institution’s losses totaled $169.4 million, but between January and April, operating revenues added up to $125.5 million.
This reduces the year-to-date deficit to $43.9 million.
“Thanks to everyone’s hard work and commitment to our patients, we’ve had four straight months of positive operating margins,” Steve Hahn, deputy president and chief operating officer, said to The Cancer Letter. “We are making great progress and feel as though we’ve turned the tide back toward financial sustainability. With continued momentum, we’re cautiously optimistic that we’ll achieve a positive margin for this fiscal year ending Aug. 31, 2017.”
MD Anderson’s monthly financials dipped into the red in March 2016, when the institution switched to the Epic system. Clinical productivity is often reduced during such switchovers as doctors take longer to enter data, but productivity usually recovers as they become more familiar with the system.
The trend was broken in January, when the operating margin jumped to $92.1 million.
This included a $63.4 million settlement from Medicare, which allowed the cancer center to claim a portion of its expenses for implementing the Epic system (The Cancer Letter, March 3).
MD Anderson officials said the second half of the fiscal year at the institution is traditionally stronger, and cautious optimism exists that a positive operating income for the fiscal year will be achieved.
The results of … Continue reading MD Anderson posts four months of positive operating margins as deficit shrinks to $43.9 million
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