Memorial Healthcare System: Financial Overview
The South Broward Hospital District d.b.a. Memorial Healthcare System ended Fiscal Year 2009 in its strongest financial position in its 56-year history. Moreover, we are 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 well beyond.
This solid financial base allows Memorial Healthcare System to help shoulder the financial burden of providing an increasing 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 their multi-year history of providing tax relief to the taxpayers in South Broward County with the adoption of a millage rate of 1.1913 in September 2008. The new rate provided a reduction in taxes for nearly 98 percent of homesteaded properties within the District.
Impressively, this $50.3 million in net tax revenue represents a mere 3.6 percent of the System’s total patient and non-tax revenue of $1,344 million (Chart C). Furthermore, in FY2009 uncompensated care provided by the System reached approximately $725 million.
This new rate grosses $60.3 million in tax revenue (Chart D). However, after discounts, uncollectible amounts, adjustments and more, there is only a distribution of $57.0 million in gross receipts. Approximately $6.7 million of gross receipts are required to be redirected to pay for matching state funds for the Medicaid program, the Healthy Kids program, to give back to 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 $50.3 million is used to fund the System’s charity care, its primary care centers and indigent patient physician services. These funds help cover services such 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 maintains a strong financial position that is exceptional in any healthcare sector — public, non-profit or for-profit. This success provides the Healthcare System the ability to give more to the community and thereby create a healthier community.
- FY2008 Audited Financial Statements
- Financial and Operating Annual Report
- Financial and Operating Quarterly Reports
The above documents can be found on the financial data dissemination website dacbond.com.