Dive Brief:
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University of Texas MD Anderson Cancer Center’s operating margins are back in the black on a year-to-year basis for the first time since January 2016.
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MD Anderson’s revenues have outpaced expenses by $11 million through the end of July, which is a month before the end of the fiscal year. The Houston Chronicle said revenue streams, including state funding and philanthropy, have helped the facility get into the black.
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The news is quite a turnaround for the Houston-based center. MD Anderson lost $267.1 million in the fiscal year ending Aug. 31, 2016.
Dive Insight:
Only seven months ago, MD Anderson Cancer Center stated it would reduce its workforce by 5% or about 1,000 positions.
After losing $267 million in FY 2016, MD Anderson Cancer Center lost nearly $170 million in its first months of FY17. It looked like another grim financial year for MD Anderson Cancer Center; President Dr. Ronald DePinho resigned in March.
MD Anderson blamed earlier losses on a costly EHR implementation, more coverage denials and high out-of-pocket costs that led to bad debt. MD Anderson saw a 76.9% drop in adjusted income from September 2015 to June 2016, which was caused by “an increase in expenses combined with a decrease in patient revenues” related to EHRs.
However, the system has appeared to regain stability with a company official now saying the facility is in a “strong position.” Some of the reasons given for the improved outlook are holding costs down, managing expenses and philanthropy. MD Anderson recently received $7.5 million from the Cancer Prevention and Research Institute of Texas for research and facility support.