Despite headwinds, OHSU financial performance continues improvement
Despite the ongoing headwinds caused by the “tripledemic” of COVID-19, RSV and the flu, financial performance essential to the long-term future of Oregon Health & Science University continues to improve, thanks to the work of dedicated OHSU members across the university, the OHSU board of directors heard during a regular meeting today.
OHSU President Danny Jacobs established a work group last year to identify ways to improve financial performance university-wide, and OHSU Health and School of Medicine leaders and members have collectively identified $96 million in potential savings.
According to Chief Financial Officer Lawrence Furnstahl, year-to-date operating income is $58 million above the seasonally spread budget — $32 million of which prorates to the prior fiscal year, when OHSU recorded a loss of ($90) million. OHSU’s board of directors approved a zero-margin budget for fiscal year 2023, and year-to-date revenues are 14% above the prior year compared to costs up 9%. This reversed last year’s pattern of costs rising faster than revenue.
“Fundamental to everything that happens at OHSU is the people who dedicate themselves to improving the health and well-being of every Oregonian,” said OHSU President Danny Jacobs, M.D., M.P.H, FACS. “I am extremely proud of the work so many at OHSU have done over the last year to ensure OHSU is moving forward together toward a better and more sustainable future.”
Furnstahl added that OHSU should remain focused on supporting OHSU members, advancing health equity, improving patient access, building for the future and moving forward the unique missions of the university.
In other board updates:
- An update on the work to implement trauma-informed systems changes following the Covington Report was given by leaders of the Implementation and Oversight Committees. The oversight and implementation committees are nearing the end of the first year of their work.
- Derick Du Vivier, M.D., M.B.A., senior vice president, Diversity, Equity and Inclusion and director, Center for Diversity and Inclusion, gave an update on anti-racism initiatives throughout the institution.
- Renee Edwards, M.D., M.B.A., senior vice president and chief medical officer, OHSU Health, presented the annual quality and safety report.
- An overview of the 2023 legislative session and OHSU priorities was provided by Julie Hanna, director, state relations.