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Memorial Healthcare System: Fiscal Year 2011 Financial Overview
South Broward Hospital District – d.b.a. Memorial Healthcare System – ended fiscal year 2011
(May 1, 2010, through April 30, 2011) with continued improvement on its already strong financial position. Moreover, in an age with increasing downgrades, we are still one of a few comparable public healthcare systems nationwide with an Aa3 / AA- or higher bond rating by Moody's and Standard & Poor's, respectively. These powerful achievements are the result of many factors, including efficient business operations, stable patient volumes and key strategies to develop specialized services that attract paying patients from the primary market and beyond.
This solid financial base allows Memorial Healthcare System to help shoulder the financial burden of providing a high level of uncompensated care and patient medical encounters at our Primary Care Centers (Charts A and B). It also enables the development and support of leading-edge facilities and services, recruitment of outstanding employees and upholding its mission as the "safety net" healthcare provider in south Broward County.
The healthcare system's financial strength also helped its Board of Commissioners to continue its multiyear history of providing tax relief to the taxpayers in south Broward County by maintaining its millage rate of 1.2732 in September 2010. While many others are raising rates, Memorial held its rate constant and effectively lowered the taxes it was asking the community to contribute.
Impressively, this $28.8 million in net tax revenue represents a mere 1.9 percent of Memorial's total net revenue of $1.497 billion (Chart C). Furthermore, in FY 2011 uncompensated care provided by Memorial reached approximately $899 million.
The millage rate for fiscal year 2011 grossed $49.6 million in potential tax revenue (Chart D). However, after discounts, uncollectible amounts, adjustments and more, there was only a distribution of $46.7 million in gross receipts. Approximately $9.3 million of gross receipts was used, as required, to pay for matching state funds for the Medicaid program, to fund the Healthy Kids program, to support community redevelopment agencies in several municipalities and to pay for revenue collector and property appraiser fees (Chart E).
Of the revenue received from property taxes, the remaining $37.4 million was used to fund Memorial's Primary Care Centers, indigent patient physician services, and uncompensated care at Memorial Manor nursing home and Memorial Home Health Agency. These funds helped cover such services as cancer therapies, pediatric services, sickle cell and cardiac care for indigent patients (Chart F). None of the tax monies are used to fund capital projects.
In closing, Memorial has maintained a strong financial position that is exceptional in any healthcare sector – public, nonprofit or for-profit. This success provides Memorial Healthcare System the ability to contribute more to the community, thereby creating a healthier community.