U-M Hospitals to End FY 2012 With “Better-Than-Expected” Finances

Ann Arbor-based University of Michigan Hospitals and Health Centers invested heavily in capital projects this year, but the health system expects to post an operating loss of 0.5 percent on $2.2 billion of revenue for fiscal year 2012 — better than the initial estimate, which called for an operating loss of 1.1 percent.

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In the past year, UMHHC opened a new children’s and women’s hospital, expanded its adult emergency department and continued its expansion of electronic records, which cost hundreds of millions of dollars.

However, patient activity grew at the health system, as inpatient and observation cases were each up 4.5 percent, and clinic visits were up 3.6 percent. For FY 2013, the U-M board of regents projected an operating gain of 0.5 percent on $2.4 billion of revenue.

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