FY2016 Financial Report
Fiscal year 2016 (July 1, 2015-June 30, 2016) marked another year of strong financial performance, improved patient satisfaction and recognition of excellence in patient care and quality, education and research. Rush continued to experience consistent operating profitability and growth in revenues, while maintaining liquidity. The financial performance has allowed Rush to continue to make improvements within clinical programs and quality of care.
Operating income, one of the most important sources of funding for Rush, was $74 million during FY2016, which reflects an operating margin of 4.1 percent. For the 12th consecutive year, this operating performance exceeded Rush’s financial targets, which have an underlying objective of achieving a return that will allow the institution to invest to fund future obligations and reinvest in our facilities and core activities of patient care, research, education and community engagement. Rush’s unrestricted cash and investments, a measure of liquidity, totaled $864 million as of June 30, 2016. The consistency of the balance sheet and liquidity has become even more important with the challenging health care environment and the competitive Chicago-area market.
Patient care continues to be at the center of Rush’s mission. Through our investments in clinical programs and demonstrated quality of care, Rush has established itself as a local and national leader in health care. Rush is currently ranked fifth among more than 100 academic medical centers by Vizient’s Quality Leadership Award (formerly known as University HealthSystem Consortium). The award evaluates hospitals on the basis of mortality, effectiveness, safety, patient centeredness and equity of care. In addition, the Centers for Medicare and Medicaid Services, or CMS, continues to recognize Rush as one of its highest-rated hospitals in Chicago. Rush is also the highest-rated academic medical center within the city of Chicago. The rating is based on ongoing CMS surveys of patients regarding their experiences.
Rush remains committed to supporting the communities we serve, including Chicago's West Side. In total Rush provided nearly $309 million in community benefits during FY2016. Included within that total, Rush provided $210 million in unreimbursed care to our patients. Rush also financially supports the education of the next generation of physicians, nurses and allied health professionals, as well as the cost of research that is in excess of external funding received.
Rush has recently entered into the initial stages of a long-term strategic plan, which includes new developments on campus as well as other offsite investments that focus on the ongoing shift to ambulatory services. Rush opened its first significant offsite campus investment with Rush River North in April 2016, an ambulatory development in Chicago’s River North neighborhood. Rush will be making other significant offsite investments in Oak Brook, Illinois, and Chicago’s South Loop over the next several years. Rush has also announced plans to open the Rush Center for Advanced Health Care, a new building on our main campus in 2020. The addition is a 500,000-square-foot ambulatory care building that will consolidate outpatient services in one convenient location and enhance the patient experience.
All of us at Rush are grateful to our generous donor community in supporting our mission and vision. Rush raised more than $44 million in philanthropic funding from individuals, families, and corporations and foundations during FY2016. In addition the endowment provided Rush with $17 million, which continues to support Rush’s people and programs by helping to provide for research, free care, student scholarships, professorships and fellowships. Philanthropic contributions are increasingly important to Rush in order to accomplish our aforementioned long-term strategic plan.
The health care environment faces many difficult challenges ahead. With the transition in the presidential administration, the state budget crisis here in Illinois and the competitive Chicago market, the uncertainty in the health care industry presents growing challenges to health care providers. Despite these challenges, Rush is well-positioned to achieve our aspirational goals projected over the next decade. By maintaining our financial strength in the years to come, Rush has a bright future in continuing to pursue our mission and achieve our vision of becoming the leading health system in the region and nationally recognized for transforming health care.
John P. Mordach
Senior Vice President and Chief Financial Officer
Rush University Medical Center
The information in this document is taken from the annual summary report of community benefits prepared for the Illinois attorney general's office. Only a portion of Rush's financial assistance programs meet the office's definition of "charity care."