ast month, Children’s announced its second straight year showing
a profit after eight consecutive years of losses. The hospital finished
fiscal year 2003 with an operational surplus of $29 million—$14
million more than was budgeted—on total revenues of $695 million.
In addition, the Children’s
Hospital Trust had another successful year, generating nearly
$50 million in new donations and moving closer to its five-year,
$250 million fundraising campaign goal.
The good news marked the completion of Children’s four-year recovery
plan, which has focused on increasing volume and reducing costs,
earning appropriate reimbursement from the federal government for
physician training and improving reimbursement rates from health
insurance companies.
While this was a terrific year, Sandra
Fenwick, chief operating officer, anticipates more
modest operating incomes in the years ahead, along with significant
financial challenges. “We will face increasing costs associated
with providing ever more complex care, facing an industry-wide shortage
of labor, and dealing with the rising cost of medical and surgical
supplies, drugs and blood products,” Fenwick says.
In addition, once the new clinical and research buildings are fully
opened and occupied, the hospital will have to absorb the costs
associated with that space, while considering the need for future
investments. Based on projected growth in demand for services and
the fact that Children’s already operates at full capacity, plans
are already being made for 50 additional beds by the end of 2005.
In addition, the hospital continues to make important investments
in the technology infrastructure that aids in safer, more effective
and more efficient patient care.
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