Nashville, Tenn.-based Vanderbilt University Medical Center posted an operating income of $168.3 million (2.2% margin) in fiscal 2024, up from an operating income of $51.7 million (0.8% margin) in 2023, according to its Sept. 30 financial report.
Five things to know:
1. VUMC posted an operating revenue of $7.6 billion for the year ended June 30, up from $6.9 billion in 2023. VUMC said in the report that the primary driver of the increase was 12% growth in patient service revenue, which was driven by increased inpatient and outpatient surgeries, emergency and ambulatory visits and acuity on inpatient services. The system also saw a shift in payer mix to commercial insurers from TennCare, positive rate changes as a result of rate renegotiations for certain Medicare Managed Care and transplantation agreements, and strong cash collections supported by improvements in revenue cycle operations.
2. Also driving favorable patient service revenues were two nonrecurring payments from government payers, according to the report. VUMC received $67 million for a Medicare 340B settlement. It also received $83 million in one-time state-directed payments. Another $83 million of those payments will be recognized in the first two quarters of fiscal 2025.
3. Operating expenses hit $7.4 billion in 2024, up from $6.8 billion in 2023. Salary, wage and benefit expenses were $4 billion, up from $3.7 billion last year. Supply and drug expenses were $1.8 billion, up from $1.5 billion.
4. VUMC had 96.9 days of cash on hand as of June 30, up from 91.8 on June 30, 2023.
5. The system posted a net income of $320.8 million in 2024, up from $142.8 million last year.