Dear Friends and Colleagues,
As we move into the fall and trade the burden of heat and humidity for the burden of heavier traffic, I want to highlight a part of our July financial report that tells a larger story than what appears. While our RVU estimate was on target, we experienced an unfavorable variance of approximately $630,000 in Net Patient Service Revenue. Point 2 in the variance summary explains that this was due to an unbudgeted charity care discount and an uninsured patient discount. That’s a lot of financial jargon, so here’s what it really means:
We collected less revenue than we had planned in July. The primary reason is that we collaborated with the revenue cycle team and the University Physicians Group (UPG) to update their charity care and self-pay discount policies, ensuring they now align with the more generous program at the Medical Center. This change wasn’t part of our original budget, and when it went into effect, it was applied retroactively for the past five years. The result was a one-time reduction in the revenue we see for July.
While this appears as an unfavorable variance on our financial statements, it reflects a decision that is deeply aligned with our department’s values: prioritizing patient care regardless of their ability to pay—actions like this matter. As a child, I remember the guilt my grandmother felt taking me to doctor visits when we were already behind on my medical bills. By allowing more patients from lower-income households to qualify for discounts, we are fulfilling our mission to serve the community and prioritize patient care. We will continue to manage our resources carefully, balancing them with a focus on prioritizing fairness, compassion, and access to care.
This month’s newsletter features news of numerous DOM members securing grants, winning awards, and sharing vital information with the community. Our division highlight this month is the Division of Nephrology—a division that continues to embody resilience and excellence in all realms. Enjoy catching up on some of the excellent work being done in the Department of Medicine, and thank you for all you do every day to carry this mission forward.
My Best to You,
Taison D. Bell, MD, MBA
Interim Chair, Department of Medicine
Filed Under: Basic Research, Clinical Research, DOM in the News, Education, Message from the Chair, News and Notes, Notable Achievements, Publications, Research, Top News