In presenting the Hospitals and Health Centers proposed FY 2000 budget, Omenn noted that the academic mission is critical to our role and guides our investment strategies. We have many different kinds of customerspatients, their families, physicians who refer patients, those who pay, insurers and the governmentand the main message is that we have done remarkably well when compared with several years ago. Everybody in the Health System deserves credit, added Omenn, who is executive vice president for medical affairs.
In presenting activity figures, Omenn noted that the hospitals continue to squeeze length of stay, noting, however, that early discharge can be a problem and presents a delicate balancing act.
Of the 1.2 million clinic visits in the past year, about half were to the Taubman Center and Mott Hospital, with the rest to 30 health centers, which are more convenient for many patients.
Omenn also cited the delicate balancing act played out in assuring that there are enough patients for student education. We need patients, but we do not want to stomp on others turf. The Cancer Center, for example, has several arrangements with other health care providers and there are several joint programs in which the University participates as a research arm at no cost to the other participating institutions.
We see lots of potential for increasing patient activity statewide, he said.
The Hospitals and Health Centers recently have focused heavily on cost reduction and several things drive those efforts:
The education reimbursements, Omenn noted, are particular to academic medical centers, which, coincidentally, get the most complicated patients.
Omenn presented a proposed operating budget showing $864.1 million in total operating revenues, against $856.9 in total operating expense, with a net gain of $7.2 million.
Several assumptions drive the projections: