Fletcher Allen third quarter financial results ahead of budget

first_imgFletcher Allen reported an operating income of $17.3 million for the first three quarters of the 2010 fiscal year. This includes an operating income of approximately $10.3 million for the third quarter. The third quarter covers the period beginning April 1 and ending June 30.Third Quarter ResultsOperating income for the third quarter was $4.1 million above budget and $1.2 million below the corresponding quarter in FY 2009. Net operating revenues for the quarter were $222.8 million, $1.6 million above budgeted revenues. The organization’s operating expenses for the quarter were $212.5 million, $2.6 million under budget, resulting in an operating income of approximately $10.3 million and an operating margin of 4.6% for the third quarter. By comparison, the organization produced an income from operations of $11.5 million in the third quarter of FY 2009.Year-to-date ResultsOn a year-to-date basis, the $17.3 million net income from operations was above the budgeted $15.8 million for the period, and produced an operating margin of 2.7%. A year ago, the organization generated a three-quarter operating gain of $24.9 million. For nine months of the fiscal year, net operating revenues were $651.2 million, $9.9 million below budget. Operating expenses were $633.9 million, below budget by $11.4 million.A key financial indicator, earnings before interest, depreciation and amortization (EBIDA) stood at approximately $65.3 million for three quarters. This was above the FY 2010 budget forecast of $63.7 million. EBIDA provides a good measure of the organization’s actual earnings.At the end of the third quarter, days cash on hand stood at 106 days using a 12-month rolling average, similar to 106 days last year. This indicator is a projected estimate of the number of days an organization could meet operating expenditures provided no additional revenues were received.A High-Performance OrganizationFletcher Allen compares well with peer groups outside the state in terms of quality and efficiency. In one group of 107 academic medical centers and 233 of their affiliated hospitals, known as the University Healthsystem Consortium (UHC), Fletcher Allen performs above the UHC median on an array of quality measures such as readmissions, heart attack, heart failure and pneumonia care, as well as cost measures such as cost per inpatient discharge and observed to expected costs of care.A December 2009 Medicare Commission report showed Fletcher Allen’s service area was ranked as among the lowest Medicare service-utilization areas in the country ‘ 82% of the national average. Only 13 service areas (out of 404 nationally) outperformed us. This report shows that Fletcher Allen providers are not routinely overusing or over prescribing health care services for their patients, which could lead to unnecessary costs to the system.Regionally, Vermont’s Act 49 report issued this year with data from Vermont, New Hampshire and Maine showed that Fletcher Allen’s hospital service area had the lowest rate of Emergency Department visits and the lowest rate of potentially-avoidable ED use. Fletcher Allen’s service area also had the lowest per-member per-month expenses for insured patients in the three-state region.About Fletcher AllenFletcher Allen Health Care, together with our partners at the University of Vermont College of Medicine and the College of Nursing and Health Sciences, is Vermont’s academic medical center. Our mission is to improve the health of the people in the communities we serve by integrating patient care, education and research in a caring environment. Fletcher Allen serves as a regional referral center — providing advanced care to approximately one million people in Vermont and northern New York — and as a community hospital for approximately 150,000 residents in Chittenden and Grand Isle counties.The institution began making its quarterly financials public with the release of the first quarter results for FY 2003 in February 2003. The audited financial statements as well as unaudited quarterly results for FY 2003 through the third quarter of FY 2010 are available on the Fletcher Allen Web site at www.fletcherallen.org(link is external). Source: Fletcher Allen. 10.20.2010last_img