Financial Summary
Our patients benefit from our high-quality and our efficiency
In healthcare, higher quality not only brings health benefits to patients; it also tends to cost less, because patients tend to experience fewer complications, readmissions, and other issues requiring additional care. For this reason, Intermountain has focused on clinical quality improvement, as well as on efficiency enhancements, as a strategy for managing costs.
In 2011, Intermountain engaged in numerous projects to enhance quality and efficiency, including the following:
- High Value Healthcare Collaborative. Intermountain joined the Mayo Clinic, Denver Health, Dartmouth-Hitchcock, Cleveland Clinic, and The Dartmouth Institute for Health Policy and Clinical Practice to form the High Value Healthcare Collaborative to improve healthcare, manage costs, and move best practices out to physicians, clinics, and hospitals across the country. The group shares care pathways, costs, and outcomes data to improve quality. Nine other healthcare systems have subsequently joined the collaborative.
- Partnership for Patients Hospital Engagement Networks. As part of this program, the Centers for Medicare and Medicaid Services chose Intermountain to lead a group of seven health systems in an initiative to make healthcare safer and less costly. The group is developing ways to reduce preventable patient injuries and complications and will share its findings with all interested U.S. hospitals. Other participants include the Mayo Clinic, Baylor Health Care System, Dartmouth-Hitchcock, Denver Health, Providence Health & Services, and the Salt Lake City Veteran’s Affairs Medical Center.
- Intermountain Healthcare Supply Chain Center. Intermountain broke ground on this warehouse and logistical hub that will serve the Intermountain region. IMAT will make Intermountain’s purchasing, storage, and distribution processes much more efficient; the resulting dollar savings help us control healthcare costs. The center is scheduled to open in mid-2012.
Intermountain’s Supply Chain Organization found ways to save about $56 million in costs in 2011, which helps reduce charges and premiums.
Intermountain Healthcare Financial Summary
(Dollars in Millions)
| Funds Available | 2011 | 2010 |
|---|---|---|
| PATIENT SERVICES AND NON-PATIENT ACTIVITIES: NET PATIENT SERVICES, including inpatient and outpatient care, pharmaceuticals, and supplies; net of discounts for patients covered by Medicare, Medicaid, and other sources becaues these agencies have limited their level of payment. | $3,577.3 | $3,361.9 |
| CHARITY services to qualifying patients unable to pay as part of our ongoing community commitment | (276.8)* | (258.2) |
| NON-PATIENT ACTIVITIES, including health insurance premiums, contributions, and other resources | 1,393.1 | 1,278.0 |
| NON-OPERATING INCOME from investing activities | 19.9 | 164.5 |
| TOTAL FUNDS AVAILABLE | $4,713.5 | $4,546.2 |
| Funds Applied | 2011 | 2010 |
|---|---|---|
| SALARIES and BENEFITS to our employees | $1,963.7 | $1,877.9 |
| Medical, pharmaceutical, dietary, and other SUPPLIES and SERVICES | 1,266.7 | 1,183.1 |
| Business SERVICES, INSURANCE, UTILITIES, and cost of facility MAINTENANCE | 555.1 | 506.8 |
| BAD DEBTS for services provided to patients who were unwilling to pay | 193.2 | 199.6 |
| Estimated DEPRECIATION and AMORTIZATION cost for this year’s use of buildings and equipment | 219.8 | 232.7 |
| INTEREST on borrowed funds | 48.8 | 50.4 |
| Increase in funds available FOR FUTURE NEEDS to replace and improve health facilities, technology, and services | 466.2 | 495.7 |
| TOTAL FUNDS APPLIED | 4,713.5 | 4,546.2 |
*This figure represents Intermountain’s unadjusted total. The charity care figures listed on page 14 in this report have been adjusted based on standards established by the Utah State Tax Commission.