UNM Hospital’s May Operating Margin at Negative $27 Million According to Reporting from Becker’s Hospital Review
Reports of UNMH Operational Deficits Existing Almost Two Years Ago.
It appears that New Mexico’s flagship hospital, the University of New Mexico Hospital (UNMH) continues to operate at a deficit that has climbed from about $4.7 million in January of 2022, to a negative $27 million operating margin as of the end of last month.
According to reporting by Becker’s Hospital Review (Becker’s), a national media outlet focused on the operation of hospitals and healthcare groups in the United States, “As of the end of May, UNM Hospital’s operating margin was negative $27 million.”
Becker’s reported that, “Leaders at University of New Mexico Hospital in Albuquerque have taken a pay cut as part of efforts to improve the organization’s financial picture.”
(The full story published by Becker’s can be viewed by clicking here.)
In January of 2022, the Albuquerque Journal reporter Jessica Dyer wrote that UNMH was “operating at a deficit, with expenses outrunning revenues by $4.6 million for the fiscal year that began July 1[2021].”
(Click here to link to Jessica Dyer’s Albuquerque Journal story.)
The Candle emailed UNM Health Sciences Center’s communications director, Chris Ramirez asking:
- Is that deficit figure correct, and if not what is the correct figure?
- Has UNMH, through or with the support of the UNMH Board of Directors and the UNM Board of Regents, requested additional support from the state to offset the deficit?
- What is the projected impact on the communities served by the hospital of not getting funding to offset the deficit?
- Does the deficit impact the ability of the hospital to properly meet its mission as the state’s only Level I Trauma Center?
- Does the budget for the next fiscal year also project a deficit?
Ramirez responded that he works “closely with UNM Hospital’s leadership on all media requests, and I won’t be able to run these questions by them until Monday. I work closely with UNM Hospital’s leadership on all media requests, and I won’t be able to run these questions by them until Monday.”
According to the Becker’s Hospital Review story, Ramirez stated, “About January, it became evident we’re going into fiscal year 2024 in July with a deficit,” adding that the hospital experienced high contract labor costs and a respiratory virus surge last fall. As of the end of May, UNM Hospital’s operating margin was negative $27 million.“
The Candle will update this story with the information expected to be provided by UNMH on Monday.