Columbia-based University of Missouri Health Care is facing financial constraints and does not currently meet the system's target for cash on hand, the Columbia Missourian reported Feb. 9.
MU Health Care's cash reserves are insufficient to cover its expenses for 200 days, which is the system's target, the report said. Executive Vice President for Finance and Operations Ryan Rapp said in a UM System Board of Curators meeting that the concerns were indicative of broader healthcare trends.
Mr. Rapp presented a five-year plan to restore MU Health Care's finances to target levels, the report said. The plan involves reducing investments and boosting productivity.
If cash reserves drop below 150 days' worth of expenses, more corrective action would be needed, the report said.
"If we were to fall below 150 days, we would look to move faster in terms of turnaround plans," Mr. Rapp said, according to the report. "There would be communication with both the president and the Board in order to get us back on track."
At the same meeting, curators approved capital projects aimed at expanding research and clinical capacities, the report said. Among them, a new facility for the Thompson Center for Autism and Neurodevelopment that would consolidate two currently disconnected facilities and expand clinical and observation spaces.
In a statement to Becker's, University of Missouri System President Mun Choi said the cash reserves do not reflect MU Health Care's overall financial health:
I am very optimistic about the future of MU Health Care. MU Health Care is in a strong financial position and has significant resources to meet operations and to thrive as an organization. This is further affirmed by our strong Aa1/AA+ credit rating by Moody’s and Standard & Poor’s.
The financial plan approved by the University of Missouri Board of Curators on February 9, 2023, demonstrates that MU Health Care is on track to grow to serve Missourians. Some of the key investments that have been made include the new Roy Blunt Precision Health Building, Children’s Hospital, Medical Science Building, the Thompson Center for Autism and many others.
With outstanding leadership from our Board of Curators, UM and MUHC leaders, we will continue to grow our market share and deliver high-quality care in hospitals and clinics in Mid-Missouri and beyond.