A YEAR OF STRONG PERFORMANCE

Since 1998, when we were established as The University of Kansas Hospital Authority, we have held ourselves to one guiding philosophy: sustainable financial performance would only result from focusing on service, quality and people. This is the key to why, even in tough economic times, fiscal year 2009 was the best year ever for The University of Kansas Hospital.

In fiscal year 2009, we discharged 24,209 patients, an 8 percent increase over last fiscal year. Outpatient visits increased by nearly 13 percent. Our emergency room visits rose by almost 3 percent.

We continue to care for the most seriously ill patients. Our case mix index, which measures the acuity of our patients, is at the highest level in our history. At the same time, we are saving more lives. Our low risk-adjusted mortality index for fiscal 2009 puts us in the top 9th percentile of academic hospitals.

Although the state of the economy caused steep declines in investment income for many hospitals across the country, a conservative investment strategy kept our portfolio decline at only 2 percent for the fiscal year. This, together with our solid operating margin, allowed our hospital to maintain an A bond rating and earn a positive outlook from Fitch Ratings.

In fiscal year 2009, $54 million in capital expenditures funded several major projects. We launched important new functionality in our electronic medical record system, bringing us ever closer to our goal of one patient, one record across the continuum of care. We added two new neuroscience units and made vital upgrades to our electrical infrastructure. We also opened the Marc A. Asher, MD, Comprehensive Spine Center, offering a full spectrum of care for back pain and spinal disorders.

Both the Center for Advanced Heart Care and the Richard and Annette Bloch Cancer Care Pavilion, completed in the past three years, are exceeding expectations. All across the organization, we are identifying areas where we can control supply costs while providing high-quality care, a strategy that will allow us to stay financially strong and continue to invest in our facilities, technology and staff.