Fletcher Allen Releases 2009 Year-to-Date and Third Quarter Financial Results

Immediate (December 9, 2009)

Mike Noble
Marketing and Communications

BURLINGTON VT - Fletcher Allen reported an operating income of $24.9 million for the first three quarters of the 2009 fiscal year. This includes an operating income of approximately $11.5 million for the third quarter. The third quarter covers the period beginning April 1 and ending June 30.

Third Quarter Results

Operating income for the third quarter was $6.3 million above budget and $2.5 million above the corresponding quarter in FY 2008.  Net operating revenues for the quarter were $219.3 million, $8.2 million above budgeted revenues.  The organization's operating expenses for the quarter were $207.8 million, $1.9 million over budget, resulting in an operating income of approximately $11.5 million and an operating margin of 5.2% for the third quarter.  By comparison, the organization produced an income from operations of $9.0 million in the third quarter of FY 2008.

Year-to-date Results

On a year-to-date basis, the $24.9 million net income from operations was above the budgeted $14.6 million for the period, and produced an operating margin of 3.9%. A year ago, the organization generated a three-quarter operating gain of $13.7 million.  For three quarters, net operating revenues were $629.5, $1.8 million above budget. Operating expenses were $604.6 million, below budget by $8.4 million.

A key financial indicator, earnings before interest, depreciation and amortization (EBIDA) stood at approximately $67.2 million for the three quarters.  This was above the FY 2009 budget forecast of $58.0 million.  EBIDA provides a good measure of the organization's actual earnings.

Key volume measures for the three quarters were positive. Total inpatient discharges were above budget by less than 1%.  Combined Inpatient and Outpatient Days, a measure of the number of patients in the hospital each day, were approximately 16.5% above budget, and physician office visits were less than 1% above budget.  At the end of the third quarter, days cash on hand stood at 106 days using a 12-month rolling average. This indicator is a projected estimate of the number of days an organization could meet operating expenditures provided no additional revenues were received.   

The institution began making its quarterly financials public with the release of the first quarter results for FY 2003 in February 2003.  The audited financial statements as well as unaudited quarterly results for FY 2003 through the third quarter of FY 2009 are available on the Fletcher Allen Web site at http://www.fletcherallen.org/.

About Fletcher Allen
Fletcher Allen Health Care, together with our partners at the University of Vermont College of Medicine and the College of Nursing and Health Sciences, is Vermont's academic medical center.  Our mission is to improve the health of the people in the communities we serve by integrating patient care, education and research in a caring environment.  Fletcher Allen serves as a regional referral center -- providing advanced care to approximately one million people in Vermont and northern New York -- and as a community hospital for approximately 150,000 residents in Chittenden and Grand Isle counties.  With more than 30 patient care sites and 100 outreach clinics, programs and services throughout the region, Fletcher Allen is committed to being a national model for the delivery of high-quality academic health care for a rural region.

Click here for FY 2009 Third Quarter Financial Results

Click here for FY 2009 Third Quarter Y-T-D Financial Results