Columbia-based University of Missouri Health Care's expenditures are exceeding its operating budget, KBIA reported April 19.
Ryan Rapp, the executive vice president of finance and operations, provided an update on the 2025 University of Missouri System budget during an April 18 board of curators meeting. In this update, Mr. Rapp said the health system is expected to have a positive outcome for the 2024 fiscal year, but it is still anticipated to fall $43 million short of its target. The fiscal year ends on June 30, according to the news outlet.
According to documents from the board of curators meeting, MU Health Care is also expected to have only 127 days of cash on hand by the end of the 2024 fiscal year.
This falls significantly short of its target of 200 days, representing a $312 million deficit.
Meeting this target is crucial for ensuring financial stability, a benchmark that MU Health Care has not achieved since fiscal year 2018, according to the news outlet.
Richard Barohn, MD, executive vice chancellor for Health Affairs and dean of the MU School of Medicine, stated that MU Health Care is developing an operational strategy aimed at enhancing efficiencies and revenue generation, coupled with reductions in total expenditures, for the remainder of 2024 and into 2025.