FY2018 Financial Report
Rush University Medical Center and Subsidiaries (referred to as "Rush") experienced another strong year of financial performance in fiscal year 2018 (July 1, 2017 - June 30, 2018), with Rush achieving our highest operating income in the organization's 175-year history.
Operating income, one of the most important sources of funding for Rush, was $88 million during fiscal year 2018, which reflects an operating margin of 3.9 percent. Rush’s unrestricted cash and investments, a measure of liquidity, totaled $978 million as of June 30, 2018. Rush was recognized for this outstanding financial performance, solid balance sheet and liquidity, with our credit rating being upgraded from A+ to AA- by Fitch Ratings in November 2018.
Patient care continues to be at the center of Rush’s mission. Through its 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 No. 2 among 99 academic medical centers by Vizient’s Quality Leadership Award. Rush was ranked No. 4 in 2017 and has been ranked in the top five every year since 2013. The award evaluates hospitals on the basis of mortality, effectiveness, safety, patient centeredness and equity of care.
Rush remains committed to supporting the communities we serve, including Chicago's West Side. Rush has invested $2 million — with a goal to reach $6 million over the next three years — in organizations that are working to revitalize neighborhoods on the West Side. These investments are part of Rush’s broader endeavor to be an anchor of better health for residents of Chicago’s West Side by improving the economic health of these neighborhoods. Rush is also working as part of a larger collaboration, West Side United, to involve other health systems, hospitals and governmental agencies. In total Rush provided $371 million in community benefits during fiscal year 2018, an increase of 11 percent over fiscal year 2017. Included within that total, Rush provided $254 million in unreimbursed care to our patients; $54 million to support the education of the next generation of physicians, nurses and allied health professionals; and $33 million to support the cost of research in excess of external funding received.
Rush is in the midst 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 outpatient services. In October 2018, Rush opened a 40,000-square-foot outpatient health center within a new 15-story, mixed use residential development in Chicago’s South Loop neighborhood. The outpatient center includes 20 specialties and has seen strong volumes to date. In January 2019, Rush opened a three-story, 100,000-square-foot medical professional building focused on orthopedic-related services in Oak Brook. The facility includes a multi-specialty ambulatory treatment center as well as other faculty physicians. Rush is continuing to develop plans for a new 10-story outpatient building on the Rush University Medical Center campus. The facility will be the hub of a system-wide approach to destination cancer and neuroscience care, as Rush strives to become the market leader in these two specialties. Construction is beginning in the spring of 2019, with the facility projected to open in fiscal year 2022.
Philanthropic contributions are increasingly important to Rush in order to accomplish our aforementioned long-term strategic plan and campus transformation, and Rush is grateful to our generous donor community in supporting our mission and vision. Rush raised nearly $98 million in philanthropic funding during fiscal year 2018, the most successful fundraising year in Rush’s history. In addition, the endowment provided $19 million to Rush, which continues to support Rush’s programs, including professorships, research and education, free care, student financial aid, scholarships, and fellowships.
With the strong financial performance, growth in clinical volumes and philanthropic support, Rush is well-positioned to execute on our long-term strategic goals over the next several years. We continue on the path to achieve our mission and 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."