While finances are improving at Philadelphia-based Temple University Health System, the public hospital system is looking for long-term financial sustainability, according to The Philadelphia Inquirer.
Five things to know:
1. The health system, which employs 9,800, is the public system for Philadelphia's poorest patients. A significant portion of patients are Medicaid beneficiaries.
2. Without the tens of millions in additional funding Pennsylvania has been providing, the system would go under. Just two years ago, Temple University Health officials were concerned their cash on hand would fall below the number the system's bondholders require and secured a $15 million line of credit as a precaution. The system has even considered selling its most profitable operation, the Fox Chase Cancer Center, to improve financial performance.
3. Richard Englert, EdD, president of Temple University, told The Philadelphia Inquirer: "Over many years, the university has been looking at this, looking essentially at the sustainability of our healthcare enterprise. We have to get ahead of the curve."
4. Another factor challenging Temple University Health's sustainability is competing with other Philadelphia health systems like Penn Medicine, UPMC and Jefferson Health, according to the report.
5. Although Temple University Health posted an operating income of $17.2 million in 2018, the health system's financial metrics are below industry standards. Its operating cash flow margin totals 5.2 percent, compared to the industry average of 8.1 percent. It also has 77 days cash on hand, compared to an industry average of 210.
To view the full article from The Philadelphia Inquirer, click here.