CFO Kelly Wallace: Driving Financial Stability at Seattle Children's Hospital
For the past 25 years, Kelly Wallace has served in an executive financial management role at Seattle Children's Hospital, and the only freestanding children's hospital in Washington state is currently sitting in a stable and positive financial setting thanks to her oversight.
Ms. Wallace, who has been CFO of SCH since 1995, and the entire financial team have spearheaded a number of financial and capital initiatives. Over the past five years, SCH has expanded its research facilities and ambulatory network, implemented an electronic health record system and laid out plans for expanded inpatient capacity in a new 80-bed patient tower, which is expected to open in April 2013.
According to Fitch Ratings (pdf), Ms. Wallace has helped SCH achieve a solid financial profile. Even though the hospital relies on Medicaid for 44 percent of its gross patient revenue, SCH has a strong operating cash flow. In fiscal year 2011, operating EBITDA totaled $140 million for an operating EBITDA margin of 16.3 percent — other hospitals in Fitch's AA credit rating category, like SCH, have an operating EBITDA margin of 10.6 percent.
As of March 31, 2012, the first six months of the hospital's 2012 fiscal year, Ms. Wallace has spurred SCH to achieve other high-marking financial metrics, including 347.3 days cash on hand, an operating margin of 8.6 percent, a cushion ratio of 21.8 and a leading market share of 28.3 percent.
Before joining SCH in 1987, Ms. Wallace was an audit manager specializing in healthcare at Arthur Anderson in Seattle.
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