University of Colorado Board of Regents Finance, Audit, and Capital Study Session

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University of ColoradoBoard of RegentsFinance,
Audit, and Capital Study Session

• University of Colorado Hospital
• Report
• Dennis C. Brimhall

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Operating Income
YTD Actual 2,722,790
YTD Budget 8,311,871
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Non-Operating Income(Excluding Contributions and
Special Expenses)
YTD Actual (1,504,323)
YTD Budget (4,609,660)
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Increase (Decrease) in Net Assets(Net Income
Operating Non-operating)
YTD Actual 3,960,697
YTD Budget 7,522,905
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FY 2002-2004 Audited Financial Results, FY2005
Budget
Liquidity
Total Cash
Days Cash on Hand
in 000s
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FY 2002-2004 Audited Financial Results, FY2005
Budget
Profitability
Operating Margin
EBITDA Margin
Excess Margin
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AIP Volume
Average Daily Census
Includes observation patients
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AIP Phase II Financing

• 160,000,000 Bonds Sold October 2004
• Series 2004A 110,000,000 Fixed Rate
• FSA Insured AAA Fitch Rating
• Aaa Moodys Rating
• Series 2004B 50,000,000 Variable Rate
• Citibank Letter of Credit AA Fitch Rating
• 
  Aaa Moodys Rating

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A Brief History

• Pre 1989 the University of Colorado Hospital was
  part the the University and subject to state
  rules
• 1989 University of Colorado Hospital Inc., (501(
  c ) 3) was created
• Dec. 2000 the UCH Inc. was declared
  unconstitutional by the Colorado Supreme Court
• 1991 the University of Colorado Hospital
  Authority was created

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UCHs Mission

• The mission of the authority shall be the
  operation of university hospital as a state of
  the art teaching and research hospital providing
  comprehensive medical care, including tertiary
  care, and patient care of limited availability.
  The authority shall also provide space and
  facilities as necessary for the operation of the
  clinical programs of the health sciences schools
  at the health sciences center together with the
  university of Colorado psychiatric hospital,

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And what of indigent care?

• subject to the provisions of section 26-15-102
  (2), C.R.S., the provision of medical care to
  those eligible for payment assistance through any
  program for the benefit of the medically
  indigent. For every three dollars of moneys
  appropriated by the general assembly that is
  distributed to the authority for the state
  medically indigent program, the authority shall
  provide four dollars worth of medically indigent
  care. 23-21-504 C.R.S.

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What does the law say?

• The state has insufficient resources to pay for
  all medical services for persons who are indigent
  and must therefore allocate available resources
  in a manner which will provide treatment of those
  conditions constituting the most serious threats
  to the health of such medically indigent persons,
  as well as increase access to primary medical
  care to prevent deterioration of the health
  conditions among medically indigent people and
• Such allocation of resources will require the
  prioritization of medical services by providers
  and the coordination of administration and
  delivery of medical services.
• Every provider awarded a contract pursuant to
  this section shall prioritize for each fiscal
  year the medical services which it will be able
  to render, within the limits of the funds which
  will be made available to it in the contracts.
  Each contract shall specify to the extent
  possible the services to be rendered.
• Such medical services shall be prioritized in the
  following order
• Emergency care for the full year
• Any additional medical care for those conditions
  the state department determines to be the most
  serious threat to the health of medically
  indigent persons

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Analysis of Statutory Requirement to Provide MI
Care for UCH
Expense in excess of Statutory Requirement 65.1M
in 000s
Sources UCH Audited Financial Statements.
Colorado Indigent Care Program Annual
Reports.
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Where does UCH stand today?

• UCH does get Federal dollars to help pay for
  indigent care
• These dollars flow through the state
• They are indexed off of the amount of care
  provided and have a two year lag
• We do the best we can within statute and with the
  available dollars
• The issue of indigent care is a public policy
  issue for the state and country. It cannot be
  solved by anyone institution.