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Posted on Mon, Jun 3, 2013 : 4:45 p.m.

U-M Health System's cash reserves top those of OSU hospital

By Amy Biolchini

The University of Michigan Health System may have more cash on hand than The Ohio State University's Wexner Medical Center but its rainy day funds are decreasing, according to media reports.

The Columbus Dispatch conducted an analysis of the ability of nine top academic medical centers in the country to operate without bringing in more revenue.

In 2008, UMHS would have been able to operate for 329 days -- which has since decreased to 191 days in 2012, according to the Dispatch report.

OSU's hospital landed near the bottom of the list, as it would be able to operate for about 59.5 days in 2012 with frozen revenues. In 2008 that figure would have been 55.8 days.

The analysis also compared earnings and debt-service charges between UMHS and OSU, as well as University of Alabama-Birmingham, University of California-Los Angeles, University of California-San Francisco, University of North Carolina, University of Washington and University of Wisconsin.

UMHS has been in the midst of a difficult budget year: Its bond rating was downgraded in late 2012 and its CEO Dr. Ora Pescovitz emailed health system employees asking them to look for ways to cut expenses.

Amy Biolchini covers Washtenaw County, health and environmental issues for AnnArbor.com. Reach her at (734) 623-2552, amybiolchini@annarbor.com or on Twitter.

Comments

Jay Thomas

Tue, Jun 4, 2013 : 6:31 a.m.

This will just give them more incentive to raise their own salaries.

mermaid72

Tue, Jun 4, 2013 : 11:31 a.m.

Raise their salaries & lower patient care, if that's possible!

PineyWoodsGuy

Tue, Jun 4, 2013 : 5:15 a.m.

Univ Mich hosp admr's are whistling in the dark! Their Day-of-Reckoning is running at them like a Fast Freight Train!!! You can only use "Smoke and Mirrors" for so many times! Guess What Dudes and Dudettes! Game's Up!!!

Nicholas Urfe

Tue, Jun 4, 2013 : 1:49 a.m.

Yeah, but who has the highest prices!

trespass

Tue, Jun 4, 2013 : 12:04 a.m.

I thought the UM Healthcare system was non-profit. The IRS will only allow so much cash on hand for a non-profit, which is why they spend their profits on new buildings.

JBK

Mon, Jun 3, 2013 : 11:01 p.m.

Yawn......... Slow news day? :)