Portland-based Oregon Health & Science University has narrowed its projected operating loss after performing better than expected in the first two months of the fiscal year beginning July 1.
Six things to know:
1. In June, OHSU's board approved an annual operating budget of $5.5 billion, with a projected $25 million deficit.
2. OHSU laid off about 500 employees this summer as its operating expenses continued to outpace increases in revenue.
3. The health system is faring better than budgeted in the first two months of the fiscal year, at $16 million in the red, which is $19 million better than expected for July and August. However, OHSU CFO Lawrence Furnstahl cautioned the board in a memo that said "results in the early months of the fiscal year can be erratic."
4. Complex patient care has increased more than expected at OHSU, which said it will continue to balance the expected increases in wages and costs through "rigorous cost-savings," while also investing in patient-facing staff for behavioral health and other priorities of the state of Oregon.
5. Mr. Furnstahl also called for "strategic alignment at this challenging time" to "protect and enhance OHSU's unique role as Oregon’s public health sciences university with statutory statewide missions in education, research, patient care and outreach."
6. OHSU plans to merge with Portland, Ore.-based Legacy Health. The combined entity would comprise 12 hospitals, more than 32,000 employees and become one of the biggest providers of Medicaid services to members in Oregon.