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June 26, 2024

UConn Health expects record $1B in patient revenue in FY25; projected deficit eliminated

JACQUELINE RABE THOMAS / CTMIRROR.ORG UConn Health in Farmington.

UConn Health said Wednesday it expects to generate record-setting revenue of more than $1 billion in the coming fiscal year.

The Farmington-based health system said the revenue from its hospital and clinical operations in fiscal 2025 would represent a 133% increase in just the past 10 years.

The projected net patient revenue figure is included in the proposed FY25 spending plan that the Board of Trustees adopted Wednesday in Storrs. In addition to projecting net patient revenue of $1.003 billion, the plan also shows that a budgeted $25.6 million loss has been eliminated. 

A year-end forecast for fiscal 2024 that is included in the budget presentation also shows that budget breaking even instead of an expected $10.1 million in net income. 

UConn Health has been struggling to rebound from the decline it experienced after curtailing many non-urgent business operations during the COVID-19 pandemic.

Officials said the projected record revenue illustrates the increasing volume of patients being served by John Dempsey Hospital, as well as its pharmacy operations, UConn Health’s physician practices, and related services.

“The success that we’re seeing in terms of the net patient revenue, the volume of patients coming in, and being able to attract and retain workers is due to a team that truly deserves many kudos,” said Andrew Agwunobi, who was recently reappointed as UConn Health’s chief executive officer and UConn’s executive vice president for health affairs.

Agwunobi said the focus on providing high-quality patient care, improving the patient experience and employing “exceptional physicians, nurses, and other professionals” has paid dividends, both in the form of higher revenues and in UConn Health’s improving reputation in health care.

The record revenue report also comes in the wake of a state study released in May that suggested UConn should explore either selling John Dempsey Hospital, linking it in partnership with a private acute care network, or other options to keep the University of Connecticut Health Center afloat financially

The analysis by Cain Brothers, an investment banking firm specializing in health care, was released by Gov. Ned Lamont’s office. It also concluded that the Farmington home of UConn’s medical and dental schools and John Dempsey Hospital is too small to compete in the current market while struggling with fringe benefit and wage costs.

The new revenue figures also come as UConn is seeking to add 23 more medical surgical beds at John Dempsey Hospital due to high demand. If approved by the state’s Office of Health Strategy, the new beds would add to the existing 234 licensed and staffed beds, which include 175 medical surgical beds.

Editor's note: This article has been updated to include figures from the fiscal 2024 and 2025 budgets.
 

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