The University of Missouri Healthcare, long the financial engine of the University of Missouri System, is facing financial headwinds, Ryan Rapp, UM System’s executive vice president of finance, told the curatorial committee last week. .
But it remains healthy and will withstand challenges to turn around, Rapp told the board.
“MU Healthcare faces financial constraints as spending growth outpaces operating revenue growth while high capital expenditures are draining the healthcare system’s debt capacity,” said a director. “MU Healthcare’s financial plan represents a commitment by management to return financial performance to target over a five-year period. , MU Healthcare should submit a turnaround plan to the President and provide a detailed update to the Finance Committee.”
In fiscal 2022, MU Healthcare was the only unit to fall short of financial targets, according to the documents, and has underperformed financial targets in fiscal 2023 through the second quarter.
That’s nothing to worry about, Rapp said in a phone interview Monday.
“Don’t worry if you didn’t meet your goals in a particular year,” says Rapp.
Curator Greg Hovelock asked Rupp on Thursday whether the five-year goal was too ambitious, but Rupp said if the hospital doesn’t meet the target, it can move forward with its rehabilitation plan. rice field.
“Management has committed to achieving both the operating margin and cash on hand reflected in the plan for fiscal 2023 and 2024,” a board statement reads.
The “severe economic impact of the pandemic” is affecting all hospitals, MU Healthcare, Rapp said on Monday.
“The main driver is increased labor costs,” says Rapp. “There is nothing unique to MU Healthcare about this.”
The hospital has a record number of patients, he said.
Current construction projects include the MU Children’s Hospital on the MU Hospital campus. At a conference on Thursday, Richard Barohn, MU’s executive vice president of health affairs, said it was on time and on budget.
All current construction projects are planned costs, says Christian Basi, spokesman for MU and UM Systems.
MU Health Care’s financial position is stable, system president and MU Chancellor Mun Choi said in a statement on Friday. He pointed out that the credit rating system gives the system a very good rating. According to Rapp, this is his second highest credit rating.
“I am very optimistic about the future of MU Healthcare,” Choi said in a statement. I have.”
The financial plan, which was approved Thursday, shows MU Health Care is on track to serve the people of Missouri, Choi said.
“Significant investments made to date include the new Roy Brandt Precision Health Building, Children’s Hospital, Medical Science Building and Thompson Autism Center,” Choi wrote.
Investment in these buildings may slow down in the short term, according to financial plans.
“MU Healthcare’s financial plans also include planned reductions in capital investments until reserves begin to be replenished,” the document reads.
Nonetheless, Rupp said on Monday that he was not worried.
“Every year we have to adjust our capital plan,” says Rapp. “All the ongoing projects are on target.”
Roger McKinney is an educational reporter for the Tribune. You can reach him at [email protected] or 573-815-1719. He is on his Twitter at @rmckinney9.
