Sunnybrook Management Commentary and Analysis 2014/15

2. Financial Performance
Sunnybrook reported Revenue over
Expenses for the fiscal year 2014-15
of $32.8 million. This overall result is
consistent with earnings in the prior year
and represents approximately 3.1% of
Total Revenue, which is marginally above
the 2-3% range recommended by the
Ontario Hospital Association as needed
for reinvestment in capital equipment,
facilities and working capital requirements.
There were several contributory factors to
these financial results including success
in revenue generation initiatives, final
settlement of several prior year accruals,
and ongoing in-year success in attaining
savings through group purchasing and
other initiatives implemented to increase
efficiency.
Integral to Sunnybrook’s strategic plan
is a targeted occupancy rate of, or
approaching, 95%, in order to provide
safe, quality and efficient care. However,
clinical activity / volumes continue to
grow, largely from admissions arising
in the emergency room. The increased
occupancy rate that arises as a result
of higher volumes also puts a financial
burden on the institution. Sunnybrook
continues to identify and make changes
that favourably impact patient flow which
has resulted in significantly fewer cancelled
surgeries and closures to trauma than
was the experience approximately 5
years ago. In FY 2014/15, however,
increased volumes, largely admitted via
the Emergency Department, did have
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