- MEDICAL COLLEGE OF WISCONSIN

Transcription

1 - MEDICAL COLLEGE OF WISCONSIN February 7, 2018 Quarterly Financial Statement Certificate This statement certifies that the Quarterly Financial Statements provided by The Medical College of Wisconsin, Inc. as of the quarter ended December 31, 2017, comply with the requirements of Section 5. lo(c) of the first Amended and Restated Master Trust Indenture dated as of December 1, Chief Financial Officer BF/cj 8701 Watertown Plank Road Post Office Box Milwaukee, Wisconsin (414)

2 THE MEDICAL COLLEGE OF WISCONSIN, INC. Statement of Changes in Net Assets For the Six Months Ended December 31, 2017 and 2016 (In thousands) Month Ended Month Ended December 31, 2017 December 31, 2016 Year-to-Date Year-to-Date December 31, 2017 December 31, 2016 Revenues: Net patient service Provision for bad debts Net patient service net of provision for bad debt Children's Specialty Group contract fees Clinical Services Contract Fees Affiliate hospital contracts CSG contract fees-affiliated hospital contracts Children's Research Institute program Restricted grants Other grants and contracts Facilities and administrative cost recovery Tuition and fees AHW assets released from restriction Contributions Endowment investment income Investment income State of Wisconsin appropriation Other Total revenues Expenses: Faculty salaries Staff salaries Subtotal salaries Fringe benefits Subtotal salaries and fringe benefits Services, supplies and other Rent and occupancy Subcontracts Depreciation and amortization Interest on indebtedness Total expenses Revenues in excess of expenses $36,317 $32,799 (2,196) (1,161) 34, ,638 16,653 15,026 7,995 10,003 10,249 10,103 1,782 1, ,171 7,695 1,406 1,261 2,540 2,329 4,147 3,651 1,666 1,565 1,724 2, ,323 1, ,001 1,450 95,901 92,229 35,310 33,668 24,379 23,149 59,689 56,817 14,405 13,004 74,094 69,821 11,167 11,197 3,583 3,549 2,355 2,353 2,691 2, ,680 89,799 1,221 2,430 $214,313 $200,577 (9,033) (8,946) 205, , ,278 93,769 44,108 41,840 60,856 60,915 11,299 9,751 4,413 4,655 44,789 45,228 8,776 9,151 14,411 13,886 25,449 22,086 8,791 8,273 4,730 6,842 4, 788 3,209 5,625 5,584 3,444 3,370 9,517 8, , , , , , , , ,703 62,284 58, , ,379 61,538 62,203 20,951 20,391 12,499 13,710 14,893 14,314 3,420 3, , ,047 30,200 24,405 Net operating margin 1.3% 2. 6% 5.4% 4.6% (Continued)

3 THE MEDICAL COLLEGE OF WISCONSIN, INC. Statement of Changes in Net Assets For the Six Months Ended December and 2016 (In thousands) Month Ended December 31, 2017 Month Ended December 31, 2016 Year-to-Date December 31, 2017 Year-to-Date December 31, 2016 Nonoperating gains and losses: Endowment income earned over (under) spendable income under the total return concept Realized gains (losses) on investments Unrealized gains (losses) on investments Unrealized gain (loss) on interest rate swap Loss on disposal of land, buildings and equipment Other gains (losses) Subtotal nonoperating activity (167) 40 9,355 5 (12) 2 9, , (8) 0 12,207 (1,426) 8,828 45, (322) ,295 (205) 2,990 36,718 6,319 (84) ,925 Increase (decrease) in unrestricted net assets 10,444 14,637 84,495 70,330 Temporarily restricted net assets: Contributions Investment income Realized gains (losses) on investments Unrealized gains (losses) on investments Net assets released from restrictions for operations Change in fair value of charitable trusts Increase (decrease) in temporarily restricted net assets ,790 (2,961) 0 5, ,895 (3,315) 0 6, ,107 17,612 19,104 (13,868) 8 26, ,882 11,597 24,630 (13,467) 1 26,420 Permanently restricted net assets: Contributions Investment income Realized gains (losses) on investments Unrealized gains (losses) on investments Change in fair value of charitable trusts Increase (decrease) in permanently restricted net assets , ,253 1, ,932 1, ,116 Increase (decrease) in net assets $16,321 $21,962 $113,378 $98,866

4 THE MEDICAL COLLEGE OF WISCONSIN, INC. Statement of Financial Position December 31, 2017 (In thousands) Assets: Cash and cash equivalents Deposits with bond trustees Investments: Endowment investments Unrestricted reserve investments Unrestricted reserve investments pledged as collateral Held in trust for professional liability program Restricted investments Total investments Receivables: Patient accounts, net Other accounts, net Grants and contracts, net Contributions, net Student loans, net Tuition receivable, net Note receivable from Children's Specialty Group Total receivables Prepaid expenses and other assets Beneficial interest in charitable trusts Land, buildings and equipment, net Total assets December 31, 2017 $93,082 17, , ,516 4,363 20,436 9,599 1,716,385 49,483 45,113 23,158 35,963 17,934 7,270 29, ,134 67,661 4, ,536 $2,389,613 November 30, 2017 June 30, 2017 $70,721 $78,141 26,599 53, , , , ,349 4,929 5,881 20,312 19,503 9,936 9,003 1,698,856 1,607,553 49,545 45,607 43,721 51,327 20,077 21,986 36,753 36,476 18,119 17,096 21,885 28,484 27, , ,312 65,712 61,746 4,406 4, , ,764 $2,362,669 $2,250,804 Liabilities and net assets Liabilities: Accounts payable Construction accounts payable Accrued payroll and related liabilities Deferred revenue Interest rate swap agreement Estimated liability for unpaid professional liability claims Long-term debt Refundable advance for U.S. Government-sponsored loan funds Other liabilities Total liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets $111,231 5, ,572 37,733 13,731 12, ,422 10,616 8, ,698 1,077, , ,677 1,778,915 $2,389,613 $106,352 $90,634 5,590 8, , ,316 40,861 19,530 13,736 14,700 12,869 12, , ,047 10,591 10,514 8,112 7, , ,267 1,066, , , , , ,745 1,762,594 1,665,537 $2,362,669 $2,250,804

5 Continuing Disclosure for Series 2008, 2010 and 2016 Bonds Sources of Revenues The primary missions of The Medical College of Wisconsin, Inc. include education, research, and medical service. This table reflects the percentage of revenues related to each mission as a percent of total revenues. December 31, December 31, Education 7% 6% Research 14% 14% Medical Services 78% 78% Other 1% 2% Total 100% 100%

6 Continuing Disclosure for Series 2008 and 2010 Bonds Percentage of Payments by Major Payor The Medical College of Wisconsin, Inc. provides medical services to patients under agreements with third-party payors, patients, and others. The following table reflects the percentage of payments by source of payment. December 31, December 31, Anthem 18% 17% Commercial 1% 1% HMO Commercial 4% 4% Humana 3% 4% Medicaid 8% 8% Medicare 11% 11% PPO Commercial 16% 15% Self Pay 7% 7% United Healthcare 29% 30% Workers' Compensation 2% 2% Other 1% 1% Total 100% 100%

7 Continuing Disclosure for Series 2016 Bonds Percentage of Payments by Major Payor The Medical College of Wisconsin, Inc. provides medical services to patients under agreements with third-party payers, patients, and others. The following table reflects the percentage of payments by source of payment. December 31, December 31, Commercial United Healthcare 27% 28% Anthem 18% 17% Humana 3% 4% Other 22% 20% 70% 69% Medicare 11% 11% Medicaid 9% 10% Self Pay 7% 7% Workers' Compensation 2% 2% Other 1% 1% Total 100% 100%

8 Continuing Disclosure for Series 2008, 2010 and 2016 Bonds Investment Returns This table provides a breakdown of investment return by interest and dividends, realized gains and losses, and unrealized gains and losses. Investment return percentages for endowment and unrestricted reserve funds are shown separately. (in thousands) December 31, 2017 December 31, 2016 Interest and dividends Realized gains (losses) Unrealized gains (losses) Total Investment Returns $ $ 4,584 6,620 39,144 50,348 $ $ 4,527 1,441 18,553 24,521 Endowment Funds 3.1% 2.1% Unrestricted Reserve Funds 3.4% 1.3%

9 Continuing Disclosure for Series 2008 and 2010 Bonds Outpatient Patient Volume by Clinical Specialty The Medical College of Wisconsin, Inc. and its principal affiliates are committed to providing innovative, high quality patient care enhanced by The Medical College of Wisconsin, lnc.'s research and educational programs. The following table summarizes The Medical College of Wisconsin, lnc.'s outpatient volume by clinical specialty. Anesthesiology - Pain Clinic Community-Based Practice Dermatology Emergency Medicine Family and Community Medicine Medicine Neurology Neurosurgery Obstetrics and Gynecology Ophthalmology Orthopaedic Surgery Otolaryngology Pediatrics Physical Medicine and Rehabilitation Plastic and Reconstructive Surgery Psychiatry and Behavioral Medicine Radiation Oncology Surgery Urology December 31, ,270 3,806 10,650 20,230 9,447 70,972 11,229 7,589 9,405 20,233 16,118 11,095 52,666 4,955 6,152 7,391 11,792 10,935 5,822 December 31, ,492 3,468 9,912 19,257 12,533 70,538 10,190 10,083 9,719 18,016 15,400 11,901 49,741 3,112 5,978 6,031 11,807 10,249 5,594 Total 293, ,021