Financial Report
Despite the challenging business environment, the financial year was characterized by substantial achievements and outstanding operational performance. Our bottom line gain of $18.7 million for the year represents the second- best year in our history. We continue to reap the benefits of our strategic plan, which has produced double-digit growth for patient encounters in each of the past four years. The expansion of our cardiology and gastroenterology programs has enhanced our capabilities in respiratory care, improved our patients’ lives and provided economic returns. In spite of ongoing reductions in the federal budget, our revenues from federal research grants increased more than six percent.
Dedicated Donors
Thanks to the loyalty and ongoing support of donors around the country, we exceeded our fundraising goals. This support was critical in helping us manage the increasing needs of our patients for financial assistance, the ongoing costs associated with operating the free Kunsberg School for approximately 90 chronically-ill children and the extensive annual investment associated with advancing science.
Revenue, Fundraising and Investments
Our financial success has also enabled investment in our clinical and research operations consistent with the strategic plan. We have expanded clinic space to accommodate increasing patient demand and have added faculty to improve patient access to care. In November 2011, we opened a new cardiac catheterization laboratory. We have also made significant investments in the research program, adding new microscopy equipment and expertise, hiring new research faculty and, with assistance from the federal government, acquiring a new supercomputer to facilitate analysis of the vast quantity of data produced in our Center for Genes, Environment and Health.
We Never Say Never
We began a national campaign entitled, We Never Say Never™, which captures the essence of what it means to be a patient at National Jewish Health. Our physicians and healthcare professionals, collaborating in a model of coordinated care, leave no stone unturned when caring for children and adults. "We Never Say Never" also describes our cutting edge research and efforts to bring new innovations and discoveries forward to patients. Our investments in the last year reflect our never-say-never attitude.
Building the Institution
After extensive negotiations, National Jewish Health successfully completed the purchase of the 7.5-acre Gove School property from Denver Public Schools. This is the last parcel of undeveloped land adjacent to our campus. Once rezoning is complete, this property will be a key to our strategic expansion.
Strategic Plan
During the year, National Jewish Health completed an assessment and update of our Decade of Innovation Strategic Plan. The Board and Trustees spent significant time evaluating how we can best continue realizing our vision over the next seven years. As part of this evaluation, we vetted our strategic goals, completed a detailed financial analysis, finished a new master campus plan and developed a new philanthropic investment thesis for the institution. We held 20 leadership briefings for small groups of friends throughout the country to gain advice and to relay our strategic and financial plans. We are convinced that our vision, strategy and tactics for the next several years represent a brilliant future for our 112 year-old institution that is dedicated to making a difference in so many people’s lives.
Overview of Revenue and Expenditures
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Patient Service Revenue*
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Research Grant Revenue *
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Investments*
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Expenses*
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Charity Care &
Uncollected Medicaid*
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*Data in Millions
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