What is it about Rush? - KEVIN HORAN :: PHOTOGRAPHY

What is it about Rush?It’s all these qualitiestogether that make Rush anextraordinary place of healing —one that sets the standardof excellence in patient care,research and education.Financial ReportRush University Medical Center experienced thebest financial results in its history in FY2006, reportingexcess of revenue over expense of more than$60 million. Operating revenue continued to growand increased by 2.5 percent after adjusting for theloss of $29.8 million in Medicaid reimbursementrelated to the Illinois Hospital Assessment Program.Management initiatives continued to control expensesto only 1.5 percent growth after adjusting for the taxassessment paid in FY2005 related to the Medicaidprogram. Investment and philanthropic results contributed$16.3 million to the reported net income andreflect the impact of Rush’s growing investment balancesand continued philanthropicsupport from the community. The improvement inrecent years in Rush’s financial performance combinedwith the strength and reputation of its medicalstaff, clinical programs and academic medical centermission led to Rush’s first public bond rating in morethan a decade in the A category as rated by all threerating agencies.Patient care continues to be the central focus ofRush’s mission. This was demonstrated again inFY2006 with continued growth as more patientsseek to obtain their care at Rush. Net patient revenueincreased 4.3 percent after adjusting for the loss ofreimbursement from the Illinois Hospital AssessmentProgram noted above. The research and educationendeavors of Rush continue to be key componentsof the mission and integral to support Rush’s vision tobe the medical center of choice in Chicago and recognizedon a national level as one of the best. Rushreported $93 million of research funding in FY2006from federal, state and philanthropic sources.The community continued to show its commitmentto Rush in FY2006 by providing $64.2 million in philanthropicsupport. Past giving continues to supportRush’s programs every year with an additional $13.7million of support coming from the endowment.Maintaining a strong investment portfolio is key tocontinuing this support from the endowment. Theendowment grew by 9.4 percent to a total of $388.3million in FY2006 driven primarily by investmentreturns of 11.5 percent.A key component of Rush’s mission is its relationshipwith the community, and this was furthered inFY2006 in a number of ways. In recognition ofthe growing number of people in Chicago and thesurrounding area who need assistance with theirhospital bills, Rush has increased the resourcesprovided to fund its financial assistance programs.The programs have been expanded, clarified andmore widely communicated to ensure that patientsin need are aware of what is being offered. Rush alsoprovides benefits to the community far in excess ofits financial assistance programs including fundingto research and education, subsidization of governmentprograms and a variety of outreach clinics onChicago’s West Side. In its community benefit filingfor FY2006, Rush identified $155 million of supportprovided back to the community.Rush has grand plans for its future which are closerto realization with the improvement in financialperformance. A campus transformation programis planned which will require more than $800 millionof capital investment over the next eight years.When completed, this project will provide up-to-datefacilities focused on the needs of the patient and willenable Rush to continue to provide the level of clinicalcare for which it is nationally recognized. To funda capital program of this size, Rush will need to continueto focus on improving financial performance,both to generate cash to support the project andto maintain access to the bond market at the levelof rating recently attained. Support from the communitywill also be required — Rush’s current capitalcampaign goal of $180 million to support the campustransformation program is a critical componentof funding. As a not-for-profit institution, these arethe only sources of capital funding available — allof the excess of revenue over expense generated atRush is reinvested into programs and capital. It iscritical that these sources of support continue tobe available and grow to enable Rush to execute itsplans and remain a provider of outstanding healthcare, a center for developing the future of health carethrough education and research, and a strong partnerand employer in the community we serve.Catherine A. JacobsonSenior Vice President,Strategic Planning and Finance;Chief Financial Officer and Treasurer$1.0.75.5.250$1.51.0.70.350$4003001500TOTAL REVENUE INCLUDINGNONOPERATING ($ IN BILLIONS)0$350250150750’02 ’03 ’04 ’05 ’06TOTAL ASSETS ($ IN BILLIONS)’02 ’03 ’04 ’05 ’06TOTAL ENDOWMENT ($ IN MILLIONS)’02 ’03 ’04 ’05 ’06TOTAL CASH AND MARKETSECURITIES ($ IN MILLIONS)’02 ’03 ’04 ’05 ’0621 Rush University Medical Center Annual Report 2006 Rush University Medical Center Annual Report 200622