Department Of Medicine Finance 101 November 17,

Transcript:Department Of Medicine Finance 101 November 17,:
Department Of Medicine Finance 101 November 17, 2015 Maureen OSullivan 1 Agenda Department of Medicine Overview Revenue Breakdown Financial Statements Objective of Financial Statements Income Statement Revenue Clinical Research Teaching Expense Operating Income/(Loss) Balance Sheet 2 Used portions of John Lindstedt’s (VP Finance FPF) presentation Department of Medicine (DOM) Overview DOM History Boston University Hospital—1855 Boston City Hospital— 1864 Merged 1996– Boston Medical Center 1910, Evans Memorial Department of Clinical Research established Maria Antoinette Evans Endowment = Donation, gift Current value $120M Annual Endowment Spending, $5-6M Department of Medicine Clinical Research Teaching 3 Department of Medicine (DOM) Overview DOM continued Comprised of 10 Clinical/Research sections, 5 Research sections, and 6 DOM offices Clinical/Research Sections: Cardiology, Endocrine, Gastro, General Internal Medicine, Geriatrics, Hem/Onc, Infectious Disease, Pulmonary, Renal, and Rheumatology Research Sections: Clinical Epidemiology, Computational Biomedicine, Genetics, Preventative Medicine, and Vascular Biology DOM Offices: Faculty & Diversity Development, Residency, VC Clinical Affairs, Evans Center for Interdisciplinary Biomedicine Research, VC Finance & Administration, and VC Research Consolidated DOM Financial Statements roll up Faculty Practice Foundation (FPF) and then to Boston Medical Center (BMC) DOM represents one of the 18 Faculty Practice Plans (FPPs) Nonprofit Organization Fiscal Year July 1st – June 30th Academic Year Board of Directors Department of Medicine Chair on FPF Board Evans Board of Directors 4 AY15 Revenue Break-down— $102M 5 DOM Reporting Constraints Research is a significant portion of DOM’s business This is not true of the other 18 FPPs, where primary focus is Clinical operations DOM is an outlier Creates reporting differences and constraints “Square peg in a round hole” 6 Financial Statements 7 Financial Statements Financial Statements Income Statement Balance Sheet Statement of Cash Flows Objectives: Provide information useful for the entity’s stakeholders Owners, Management, Directors Creditors Regulatory agencies Investors Support business and economic decisions Transparency – understand the health of a business and how well resources are being manage Management principle – If you can’t measure it, you can’t manage it Used to formulate budgets Use historical data to create plans Compare actuals to planned targets 8 Income Statement 9 Income Statement Reports the “profitability” of operations Net income = “bottom line” Specific period of time Monthly Quarterly Annual (fiscal year) Compare to Budget or Prior Year Net Operating Income = Revenue - Expenses 10 DOM produces Financial Statements on a monthly basis. Review with Chair monthly and Sections quarterly. DOM AY15 Income Statement AY15: July