In the latter part of 2021, the financial challenges at VCU Health System were pronounced, causing the organization to eliminate unnecessary costs in order to reverse its financial situation, Richmond Times-Dispatch reported Nov. 13.
At the conclusion of the fiscal year, the health system experienced a loss of $53 million, equivalent to 2% of its operating budget. The health system also incurred expenditures in the millions during the transition to its new Epic EHR system.
So, VCU Health decided to cut costs in its advertising and marketing budgets, and requested employees to refrain from traveling for ongoing education or conferences, in addition to other measures such as reducing patients' length of stay.
The cost reductions resulted in a $36 million operating income at the end of the most recent quarter and allowed VCU Health to receive a "Aa3" rating from Moody's, while Standard & Poor's assigned it an "AA-."