Ann Arbor-based Michigan Medicine expects to end fiscal year 2019 with an operating margin of 3.8 percent on forecasted operating revenue of $4.7 billion, the academic medical center announced June 20.
The announcement came 10 days before the fiscal year ends June 30, during a University of Michigan Board of Regents meeting. David Spahlinger, MD, executive vice dean for clinical affairs and president of the University of Michigan Health System, presented board members with the projections.
"The year's results reflect our activity growth and our steadfast focus on investments in safety, quality, access and efficiency," he said, according to a news release.
"The results also demonstrate the commitment of our dedicated faculty and staff to providing excellent health care, improving our patients' experiences and executing our long-term vision of being a healthcare provider of choice in the state of Michigan," said Dr. Spahlinger.
Michigan Medicine said Dr. Spahlinger told board members the academic medical center has tried to manage costs and improve efficiencies this fiscal year. Opening the Brighton Center for Specialty Care in September 2018 and an affiliation agreement with Lansing, Mich.-based Sparrow Health System in March to expand specialty care access, were two initiatives that boosted Michigan Medicine's finances, Dr. Spahlinger said.
The academic medical center is aiming for a 3.4 percent operating margin on revenues of $5 billion in fiscal year 2020, which begins July 1.
"No significant capacity enhancements are expected in fiscal 2020, so this plan is ambitious as we continue to deal with legislative, regulatory and industry pressures," Mr. Spahlinger said.