Fiscal year ending June 30, 2012, saw the continued expansion of our clinical programs. Patient demand for services continues to grow, both locally and nationally. To meet this demand, we successfully recruited several nationally recognized physicians, opened a new cardiac catheterization laboratory and expanded our gastroenterology service to include additional invasive procedures and a colon cancer screening program.
We increased our presence in the region by contracting to provide physician services at additional facilities and, as part of our ongoing commitment to patient service, designed and implemented a new electronic patient portal. Our strategy continues to produce economic returns. In spite of ongoing reimbursement challenges, net patient service revenue increased 9 percent over fiscal year 2011.
Federal budget pressures are a challenge for research institutions around the country, and National Jewish Health is no exception. With the expiration of the American Recovery and Reinvestment Act and budget cuts at the National Institutes of Health, research grant funding fell 18 percent in fiscal 2012. In spite of the financial pressures, National Jewish Health faculty continues to be at the forefront of research and discovery.
We were recently awarded a $31.3 million grant to continue our study of the influence of genetics on chronic obstructive pulmonary disease. Additionally, though the scores required for grants to be funded have increased, the number of new federal grants awarded to National Jewish Health grew 88 percent over fiscal 2011. National Jewish Health remains committed to furthering our research mission. In fiscal 2012, we made several investments in our research programs with the addition of several new scientists, development of advanced microscopy facilities and creation of a new epithelial cell research core.
Investment Returns and Generous Donors
Fiscal year 2011 ended on a high note in the financial markets. National Jewish Health recorded $18 million of investment returns for the year. The financial markets dropped precipitously early in fiscal 2012, but largely recovered by year end. National Jewish Health recorded just under $1 million in investment returns for the year. Thanks to the ongoing commitment of our loyal donors, $21.4 million in net charitable contributions were received during the year. Due to tight expense controls, expenses increased less than 1 percent year over year.
In 2012, National Jewish Health successfully refinanced $27.7 million of outstanding debt. This refunding resulted in a total savings of more than $3.5 million and shortened the term of the debt outstanding by two years. While this refunding provides significant savings, National Jewish Health had to write-off assets related to the refinanced debt, which resulted in a $1.2 million loss on the fiscal 2012 financial statements.
National Jewish Health continues to focus on our Decade of Innovation: Strategic Plan 2017. Our personalized approach to coordinated patient care and the integration of research into our clinical programs position us well for success in the continually changing health care environment. Our commitment to education, from our medical training programs for post-doctoral fellows to our school for chronically ill K-8 children, is unwavering. With the help of our friends throughout the country, National Jewish Health will remain a leader in the research and treatment of lung, heart, immune and related diseases.
Overview of Revenue and Expenditures
|Patient Service Revenue*
||Research Grant Revenue *
Charity Care &
*Data in Millions