Like most organizations, Intermountain Healthcare has been negatively affected by the economic crisis that emerged in 2008. While Intermountain continues to perform well operationally, revenue from investments declined for us as for virtually all institutions.

Intermountain responded to the recession quickly and effectively, and employees met the challenges with dedication and resilience. Budgets were adjusted, discretionary spending was reduced, and certain capital spending was postponed. Intermountain suspended its matching contributions to the 401(k) retirement savings plan for 2009, and senior-most leaders took a reduction in pay in 2009. While significantly affected, Intermountain remains financially sound and able to fulfill its mission.

Through prudent management of resources, we’ve been successful in keeping our charges relatively low. Intermountain's inpatient charges are, on average, 19 percent lower than average charges at other Utah hospitals, according to 2007 Utah Department of Health data. Outpatient surgical charges at Intermountain facilities are, on average, 33 percent lower than average charges at other Utah facilities (2006 data).

A number of studies show that Intermountain Healthcare is highly efficient in providing healthcare. For example, a 2008 white paper by researchers at Dartmouth cited Intermountain, along with the Mayo Clinic, as a national benchmark:

How much could Medicare save? Given the strong national reputations enjoyed by such organized practices as the Mayo Clinic and Intermountain Healthcare, and the objective evidence that they deliver more efficient, higher quality care, it seems reasonable to use these systems as benchmarks for the rest of the country. Were all providers in the country to achieve the same level of efficiency for inpatient spending on supply-sensitive care, we estimate a 28 percent reduction in hospital spending under a Mayo benchmark and a 43 percent reduction under an Intermountain benchmark.

— John Wennberg, MD, Elliott Fisher, MD, et al., An Agenda For Change: A Dartmouth Atlas White Paper (The Dartmouth Institute for Health Policy and Clinical Practice, Dec 2008): 5.

Financial Summary
2008 2007
(Dollars in Thousands)
FUNDS AVAILABLE
PATIENT SERVICES and NON-PATIENT ACTIVITIES:
INPATIENT SERVICES, including nursing care, diagnostic tests, pharmaceuticals, and supplies $ 2,160,651 $ 1,944,879
OUTPATIENT SERVICES by physician clinics, emergency departments, outpatient care services, and related healthcare services 2,233,202 1,946,377
NON-PATIENT ACTIVITIES, including health insurance premiums, investment income/loss, donations, and other resources 664,303 * 1,329,999
TOTAL PATIENT SERVICES and NON-PATIENT ACTIVITIES 5,058,156 5,221,255
UNCOMPENSATED COMMUNITY SERVICES and CONTRACTUAL DISCOUNTS:
As part of our ongoing community commitment, we provide CHARITY services to qualifying patients unable to pay (191,073) ** (154,259)
We incurred BAD DEBTS for services provided to patients who were unwilling to pay (176,958) (153,699)
We did not receive full payment for services provided to patients covered by MEDICARE, MEDICAID, and other sources because these agencies have limited their level of payment (1,509,109) (1,285,363)
TOTAL UNCOMPENSATED COMMUNITY SERVICES and CONTRACTUAL DISCOUNTS (1,877,140) (1,593,321)
TOTAL FUNDS AVAILABLE $ 3,181,016 $ 3,627,934
FUNDS APPLIED
SALARIES and BENEFITS to our employees $ 1,695,408 $ 1,572,381
Medical, pharmaceutical, dietary, and other SUPPLIES and SERVICES 1,062,628 1,012,708
Business SERVICES, INSURANCE, UTILITIES, and cost of facility MAINTENANCE 456,955 477,063
Estimated DEPRECIATION and AMORTIZATION cost for this year’s use of buildings and equipment 190,268 145,359
INTEREST on borrowed funds 36,746 30,358
Increase (decrease) in funds available FOR FUTURE NEEDS to replace and improve health facilities, technology, and services (260,989) 390,065
TOTAL FUNDS APPLIED $ 3,181,016 $ 3,627,934

* This figure reflects investment losses incurred in 2008, which offset revenue from other non-patient activities.

** This figure represents Intermountain’s unadjusted total. The charity care figures listed elsewhere in this report have been adjusted based on standards established by the Utah State Tax Commission.
The Healers