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Vidant Health board approves 2018 Quality, Experience and Operational Plans

August 22, 2017 by Erica Mizelle

GREENVILLE — The Vidant Health Board of Directors approved the fiscal year 2018 quality, experience and operational plans today, as well as the budget that will support this work. Today’s decision provides the strategic direction and financial resources needed to guide and fund the health system next year.

The budget for the 2017-18 fiscal year projects total operating and non-operating revenues of $1.760 billion, operating and non-operating expenses of $1.686 billion, excess-of-revenues over expenses of $73.8 million and an operating margin of 2.8 percent. Any margin will be reinvested back into facilities, new services, equipment and system employees.

Lawrence Davenport, board chairman, thanked the board committees for their direction and contributions over the past several months.

“I’m proud of our members’ contributions to this work, which will ensure continued focus on the quality of care and experience Vidant provides in the communities the system serves,” Davenport said.  “Vidant continues to be a financially healthy organization, while accounting for changes in state and federal programs prompted by an ever-changing health care industry.  As the industry moves from a payment system based on volume, to a payment system based on the value of the care that is provided, so do we.”

The board also approved a budget that provides the funding necessary to continue Vidant’s position as the health care safety net for eastern North Carolina. However, there is still uncertainty regarding the proposed changes in reimbursement from the payors and how that will affect Vidant.  

“We have worked hard to present the quality, experience and operational plans that align with our mission, vision and values while incorporating strategies to advance high quality care,” said David Hughes, chief financial officer, Vidant health. “We care for those who are the most medically fragile and socioeconomically challenged in the state. It’s important our strategic work supports those who depend on us. ”

As a not-for-profit corporation, Vidant reinvests all of its income back into capital projects, equipment and access to services for the patients and communities it serves. In fiscal year 2018, the system will invest approximately $151 million in capital assets, which include investments in information systems across Vidant, as well as continued construction projects. 

Next year, Vidant will continue its commitment to quality and experience by focusing on collaboration, communication and standardization across the health system to achieve exceptional experiences for patients and their families. Vidant will also focus on population health management and preventing chronic disease.

Additionally, the system will reinvest $28.5 million on the continued construction of the new cancer center, which is scheduled to be completed during fiscal year 2018.  Additional investments are being made at Vidant Beaufort for Emergency Department renovation and expansion, in information systems, diagnostic services, normal equipment replacement and much-needed upgrades in the core infrastructure of the system’s hospitals. If further reductions in reimbursement occur, the ability to fund these capital requirements will be at risk.

Mr. Bryant Kittrell, chair of the Finance Committee, explained the budget also recognizes the importance of the system’s nearly 12,000 employees through a budget committed to funding salaries and benefits of $957 million.

Vidant includes VMC, Vidant Beaufort Hospital in Washington, Vidant Bertie Hospital in Windsor, Vidant Chowan Hospital in Edenton, Vidant Duplin Hospital in Kenansville, Vidant Edgecombe Hospital in Tarboro, Vidant Roanoke-Chowan Hospital in Ahoskie, and The Outer Banks Hospital at Nags Head, where it is a 60 percent owner. The Outer Banks Hospital board will adopt its budget separately. Vidant Health also includes Vidant Wellness, Home Health and Hospice and Vidant Medical Group.

 

About Vidant Health

Vidant Health is a mission-driven, 1,447-bed health system that annually serves more than 1.4 million people in 29 eastern North Carolina counties. The not-for-profit system is made up of 12,000 employees, eight hospitals, home health, hospice, wellness centers, and Vidant Medical Group, a multi-specialty physician and provider group with more than 420 providers in more than 80 practice sites in eastern North Carolina. Vidant is affiliated with The Brody School of Medicine at East Carolina University. As a major resource for health services and education, Vidant has a mission to improve the health and well-being of eastern North Carolina. For more information, visit www.vidanthealth.com.

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