The average charge for an intensive care room holds for the fourth year at $1,747. In addition, there is no change in ancillary rates.
This budget reflects our ongoing commitment to be more cost-effective while continuing to improve our quality of care and service, said John D. Forsyth, executive director of the U-M Hospitals. With health care reform on the horizon, we cant afford to operate any other way.
In the previous two fiscal years, the Hospitals cost effectiveness program saved $44 million; another $22.5 million in savings is anticipated in 199394.
The 199394 budget also anticipates that inpatient admissions, length of stay and outpatient clinic visits will remain nearly the same or be slightly improved from last fiscal year. The budget projects an operating margin of $27.3 million and an overall excess of revenues over expenses of $56 million.
We are continuing to meet our commitment to hold rates down, noted David Southwell, Hospitals financial officer. Because we reduced our daily room rate by more than $135 a year ago, were actually ahead of our plan.