Sunnybrook Management Commentary and Analysis 2014/15

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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 4
negative downstream impacts resulting in some cancelled surgery and a resulting loss of revenue. There continues to be no closure to trauma. Sunnybrook is also continuing to experience cost pressures in relation to its aged infrastructure. In 2014-15 the Ministry of Health and Long Term Care (Ministry) has significantly increased its focus and funding for hospital infrastructure renewal and Sunnybrook used these funds to invest in a number of high risk areas including: emergency generator plant upgrade, roofing and building envelope repairs, elevator renewals and asbestos removal, Despite this investment, maintenance costs continue to increase and create additional cost pressures for the organization. Sunnybrook continues to advocate for further increases by the Ministry in the Hospital Infrastructure Renewal Fund. Health System Funding Reform (HSFR) continues to be rolled-out by the Ministry, and in March 2015 the Ministry provided Health Based Allocation Methodology (HBAM) results for the Province. An indepth review confirms that Sunnybrook continues to be a best quartile performer amongst our peer group and that overall many more organizations are reflecting as efficient. With respect to Quality Based Procedures (QBPs), Sunnybrook remains focused on providing high quality care, utilizing best clinical practices, in order to ensure we provide such care in the most effective and efficient manner. The chart below reflects how Sunnybrook has used the resources entrusted to it to provide patient care and in particular that the vast majority of funds are used for direct patient care. Sunnybrook’s overall efficiency is further evidenced by less than 9% of total expenses being incurred in Corporate Support. Fiscal 14/15: What do these expenses buy? Fiscal 14/15: What do these expenses buy? Medical Staff Food & Physical Support & Clinical Educa8on 10.5% Corporate Support 8.6% 3.6% Other (Insurance & Interest) 1.7% Clinical Services Lab, Diagnos8c Imaging & Pharmacy Food & Physical Support Corporate Support Lab, Diagnos8c Imaging & Pharmacy 14.3% Direct Care Expenses: 61.3% Clinical Services 14.3% Labs, Diagnos8c and Pharmacy 75.6% Total Clinical Services 61.3% Medical Staff & Clinical Educa8on Other (Insurance & Interest) 5
Page 1: Management Commentary and Analysis
Page 4 and 5: 1. Introduction Outstanding patient
Page 8 and 9: 3. Strategic Plan 2015 - 2018 and O
Page 10 and 11: 4. Human Resources Sunnybrook conti
Page 12 and 13: 5. Education Sunnybrook celebrates
Page 14 and 15: 6. Research Institute Sunnybrook Re
Page 16 and 17: 7. Nursing More than 2,900 nurses a
Page 18 and 19: 8. Health Professions Interprofessi
Page 20 and 21: 9. Greening Sunnybrook Sunnybrook
Page 22 and 23: sunnybrook.ca/engagement launches A
Page 24 and 25: 11. Web Communications The Hospital
Page 26 and 27: 12. Improving Service for Patients
Page 28 and 29: 13. Safety Sunnybrook strived in 20
Page 30 and 31: 14. Digital Technology State-of-the
Page 32 and 33: 15. Partnerships and System Improve
Page 34 and 35: 16. Fundraising Sunnybrook Foundati
Page 36 and 37: 17. Financial Outlook 2015/16 Sunny
Page 38: Notes 36

Sunnybrook Management Commentary and Analysis 2014/15

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