The hospital had only two months of profit since July 1, but March and April had strong patient counts, which led to a less dire financial outcome for the fiscal year that ends June 30, according to the report. According to hospital officials, the loss represents less than 1 percent of the hospital’s $860 million annual budget.
The Iowa Board of Regents has recommended a 6 percent rate increase for University of Iowa Hospitals patients to help cover the costs of those who are covered by Medicaid and Medicare, according to the report. The hospital is hoping for a 1 percent profit margin for fiscal year 2010, with a goal of a 4 percent profit by 2011.
In addition, more than 500 hospital employees have agreed to take voluntary pay cuts and reductions in paid time off to make up for budget shortfalls for 2010. These cuts will save the hospitals $1 million, in addition to the $2.6 million that was saved by 40 hospital senior officials taking pay cuts, according to the report.
Read the Register’s report on the University of Iowa’s expected 2009 loss.
