Majority funding by insurance companies, with little coming from the state of California, is one key credited with helping UCLA Medical System post record revenue.
High patient satisfaction and the closing of numerous community hospitals also helped lead the group to $1.5 billion in revenue with a $100 million surplus for the 2008-09 fiscal year. Even with the increased revenue numbers, there are some challenges within the system.
Some areas of UCLA, such as the David Geffen School of Medicine, were more affected by state cuts than others. Of the $100 million surplus, $53 million went to the medical school.
Other surplus money focused on infrastructure, including:
- beginning the conversion to electronic medical records;
- upgrading patient rooms;
- and investing in medical technology aimed at patient safety.
Specifically, over the next few years, $180 million will be dedicated to the EMR initiative.
While the revenue uptick is positive, UCLA's administrators know that expense challenges will mount in April as the University of California implements pension contributions, requiring a minimum 4 percent contribution per year by the medical center.
To learn more:
- read this Daily Bruin article