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Memorial Healthcare System: Fiscal Year 2009 Financial Overview

South Broward Hospital District d.b.a. Memorial Healthcare System ended fiscal year 2009 (May 1, 2008, through April 30, 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 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 its multiyear 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, as well as a reduction of $1.6 million in levied taxes (2.6 percent).

Impressively, this $50.4 million in net tax revenue represents a mere 3.6 percent of Memorial's total net revenue of $1.386 billion (Chart C). Furthermore, in FY 2009 uncompensated care provided by Memorial reached approximately $725 million.

The millage rate for fiscal year 2009 grossed $60.1 million in tax revenue (Chart D). However, after discounts, uncollectible amounts, adjustments and more, there was only a distribution of $57.1 million in gross receipts. Approximately $6.7 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 $50.4 million was used to fund Memorial's charity care, its Primary Care Centers and indigent patient physician services. 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.