Hoboken University

Medical Center
2010 Budget Overview
Public Meeting, February
18th , 2010

HUMC Operating Expenses 2005-2010 in millions
(before interest and depreciation)

How was it done?
• Staff (non-union as well as our two unions)
reduced labor costs by 10% by rolling
back salaries and other pay (on-call,
overtime)
• Physicians reduced expenses by
maintaining a 10% roll back from last year
and rolling back additional physician
contracts this year
• Reduced cost of the top two executives by
over $1 Million
• Received 10% concessions from several
vendors
• All executive staff gave up incentive
payments

What did the employees
give up?
• Salary cuts of 7% for JNESO and non-union,
6% for 1199J
• Elimination of 401K contribution 3% (nonunion)
• Reduction in employer benefit contribution
for 1199J
• Reduction of on-call payments for nurses
• Increase of overtime threshold from 37.5
hours to 40 hours
• Elimination of benefit time counting towards
overtime
• Total: $6 Million annually

How do HUMC expenses
compare in the State?

Full time equivalents (FTEs) per
Occupied Bed:
HUMC is 3rd best in the State out of 48
hospitals

Total Expenses per Admission
HUMC ranks 7th best in the State out
of 48 hospitals

Source 2009 NJHA Fast Report (June 2009)

What are the challenges in
2010 ?
• Receiving fair rates from private
payers
• Improving revenue cycle process,
including but not limited to
decreasing denials
• Compensating for any additional cuts
in Charity Care
• Increasing our volume, especially
surgical volume
• Maintaining a high Case Mix Index

Major Initiatives for 2010
• Implement a hospitalist program by
June
• Open the vascular lab by Fall 2010
• Seek program specific affiliation (s)
with quality partners in areas such
as cardiology, oncology, neurology
• Begin phase II of the OB renovation
• Rebuild trust in our community

DRAFT 2010 BUDGET

FY09
 

 

 

 

 

  Actual

FY10
  BUDGET

Operating Revenues:

 

 

Net Patient Service Revenue less Bad Debt
 

VARIANCE

Disproportionate Share Revenue - MA 
Total Patient Service Revenues

$   97,864,115 

$    100,791,261 

$   (2,927,146) 3.0%

         8,479,491               9,270,610          (791,119) 9.3%
    106,343,606 

       110,061,871        (3,718,265) 3.5%

State Charity Care subsidy (UCC)

     14,319,433 

         14,130,081           189,352 

-1.3%

State Hospital Relief subsidy

          598,377 

                      -   

         598,377 

0.0%

State Mental Health subsidy

          255,947 

             255,947 

                  -   

0.0%

Graduate Medical Education (Mcare & Mcaid)    

       2,031,745 

           2,031,745                    -   

0.0%

Grant Revenues

       4,336,051 

           4,336,051                    -   

0.0%

Stabilization Grant Revenues

       1,000,000 

           6,000,000        (5,000,000) 500.0%

Other Operating Revenues:

 

Other

 

 

Total Other Operating Revenues
 

Total Operating Revenues 

         1,063,797               1,063,797                    -   
     23,605,350 

0.0%

         27,817,621        (4,212,271) 17.8%

      129,948,956           137,879,492        (7,930,536) 6.1%

Net Patient Service Revenue
(in millions)

Requisitioned Expenses:
Salaries - Employees & Physicians

$   67,586,280 

         63,714,968 

$   (3,871,312)

-5.7%

Salaries - Residents

       1,263,202 

           1,357,805 

           94,603 

7.5%

Fringe Benefits

     19,809,209 

         19,126,608 

        (682,601)

-3.4%

Physician Pro Fees

       7,474,628 

           7,478,843 

             4,215 

0.1%

NonPhys Pro Fees & Purchased Srvs

     15,743,246 

         14,587,378 

      (1,155,868) -7.3%

Supplies

     16,495,089 

         16,923,197 

         428,108 

2.6%

Rentals & Leases

       3,430,515 

           3,352,924 

          (77,591)

-2.3%

Utilities

       2,523,445 

           2,721,032 

         197,587 

7.8%

Insurance

       1,875,316 

           1,923,827 

           48,511 

2.6%

Repairs & Maint

          990,012 

           1,076,959 

           86,947 

8.8%

            944,668 

             782,057 

        (162,611)

-17.2%

Other
 

 

 

Total Manager Operating Expenses

Manager/Contractor
 

HMHA - Direct Organization Costs
Total Operating Expenses

      138,135,610           133,045,598 

      (5,090,012) -3.7%

$ 138,135,610 

$    133,045,598 

$   (5,090,012)

-3.7%

            439,539 

               450,000 

           10,461 

2.4%

    138,575,149 

       133,495,598 

      (5,079,551) -3.7%

 

Income(Loss) From Operations Before Depreciation & Amortization
        (8,626,193)              4,383,894 

    (13,010,087) -150.8%

Debt Service Payment

                  -   

        -   
0.0%

                  -   

                      -   

 

Depreciation & Amortization Expense

        (5,377,335)             (5,377,044)

               (291)

 

Income / (Loss) from Operations

      (14,003,528)               (993,150)

    (13,010,378) -92.9%

NonOperating Revenues (Expenses)
Interest Expense

      (2,624,049)

          (2,598,551)

          (25,498)

-1.0%

Interest Earnings - Bonds

            36,832 

               36,832 

                  -   

0.0%

HUMC Foundation Donation 

          500,000 

                      -   

         500,000 

0.0%

Fund Balance - Shortfall 2009

                  -   

                      -   

                  -   

0.0%

Sale of Rehab Beds

                  -   

           1,200,000 

                  -   

0.0%

$ (12,535,876)

-85.4%

   
 

Revenues over Expenses 

  $  (16,090,745)   $       (2,354,869)

January 2010 results
• Draft financials show $300 K of
income before interest and
depreciation
• January has only 1/3 of the labor
concessions, JNESO and 1199J
concessions started with pay-period
# 3 which falls in February
• Annualized payroll based on payperiod # 3, including overtime and
benefit savings is exactly on target

Board questions and material
provided
• Approximately 35 questions were asked
by board members last Friday
• Questions included lists of employees,
contracts, list of cell phones &
beepers, tuition re-imbursement,
catering expenses, travel expenses,
benefit expenses, overtime expenses
by department, list of software
vendors, IT costs, collections costs,
managed care contracts, residents
fees, food and housekeeping costs,