HUP profits up $1 mil. over FY 91

The Hospital of the University of Pennsylvania earned $1 million more in the first four months of this fiscal year than it did last year in the same period. HUP Executive Director and Medical Center Vice President Bud Pittinger said last night that the money will be reinvested into the hospital to improve facilities. "We are obviously delighted to have the capital to address some absolute requirements that we have, both in the hospital and the School of Medicine," Pittinger said. "But it's just a drop in the bucket." The first third of a fiscal year runs from July through October. In FY 1991, HUP garnered $7.4 million while this year it earned $8.4 million. Data was not available for earlier years. HUP Chief Financial Officer John Wynne noted last night that the hospital, a non-profit institution, will put the money back into the Medical Center. "You have to understand that the hospital is not making profits and squirreling it away," Wynne said. "The money is reinvested in the Medical Center." Pittinger said the Medical Center, which unites HUP and the Medical School, will direct the increased net revenue towards many projects, including modernizing the hospital, deferred maintenance and construction of Biomedical Research Building One -- a new research building that will be constructed near Blockley Hall. Pittinger attributed the marked increase as a result of many factors including increased patient admissions. "Admissions have gone up over the past few years thanks to our clinical faculty here in the Medical Center," he said. "Hospital administrators don't admit patients, physicians do." Pittinger also noted that medical malpractice costs were lower during this period and that a recent federal court settlement has helped the Medical Center recover more money from the State of Pennsylvania when caring for Medicaid patients. Both Pittinger and Wynne added that William Kelley, the chief executive officer of the Medical Center and the Medical School dean, has significantly helped to increase revenues. Kelley's leadership in uniting the various departments since he arrived in October 1989 greatly attributed to the financial success of the medical center, Pittinger added. "Normally, medical centers like ours always have dissension among the hospital, the medical school and the clinical practices -- always fighting each other and not working in a common direction," Wynne said. "[Kelley] has set a culture in place where that is not permitted -- other places are decisive within themselves, but he won't allow it."