The University of Michigan Health System reported anticipated operating income of $129 million on operating revenues of $3.1 billion in the most recent fiscal year for its hospitals, health centers and medical group.
The system's strong financial performance in FY 2016 is largely attributable to an increase in patient volume, David Spahlinger, MD, president of hospitals, health centers, and the U-M Medical Group, told the U-M board of regents in a recent meeting.
Based on the system's strong performance, the regents approved a budget that sets a higher target for FY 2017, which begins July 1. That budget plan aims for a 4.3 percent operating margin on revenues of $3.2 billion.
Regarding the FY 2017 plan, UMHS CFO Paul Castillo said, "We are confident that we are prepared to navigate the pressures facing our industry, so that we can meet or exceed our projections."
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