KALEIDA HEALTH POSTS FIRST BUDGET SURPLUS SINCE 1998 FINANCIAL NEWS VIEWED AS HISTORIC FOR FIVE-YEAR OLD HEALTH SYSTEM 2004 BUFFALO, N.Y. (Feb. 17, 2004) - Kaleida Health, Western New York's largest healthcare provider, today announced that the not-for-profit has posted a two million dollar surplus from its 2003 year-end budget. The first-ever positive operating margin, confirmed at $2,035,000 by a final audit, was reached ahead of schedule and is regarded as a major milestone in the health system's five-year history. William D. McGuire, Kaleida's President and Chief Executive Officer said, "The realization of this surplus is the result of a collaborative approach to quality and excellence in health care. Working together, the physicians, nurses, administrators, unions and employees made a commitment to change and to turn the entire system around. This accomplishment is a major milestone and positions Kaleida well for the coming years." Since its inception in 1998, Kaleida had been saddled with major deficits while operating within its $1 billion budget. In 2001, the health system lost over $62 million. In 2002, net losses came in at just over $13 million. William L. Joyce, Chair of the Kaleida Health Board of Directors said, " Kaleida has undergone a remarkable turnaround. We have not only achieved tangible financial success but success in improving our patient and employee satisfaction, while remaining focused on our mission and values. This is a historic day for our health care system." Kaleida officials noted several key factors contributed to the 2003 success:
"This growing stability is great for our employees, our patients, and the Western New York community as a whole," said Joyce, the Board Chairman. "This improved financial outlook will enable additional equipment purchases and facility upgrades, further enhancing our quality care. The anticipated addition of more than 150 employees in 2004 will contribute to improved delivery of care as well." With more than 10,000 employees, Kaleida is Western New York's largest private sector employer. The Kaleida hospitals include the Buffalo General, the Women & Children's Hospital of Buffalo (WCHOB), DeGraff memorial Hospital, and Millard Fillmore Gates and Suburban Hospitals. Kaleida also serves as the major teaching affiliate of the State University of New York at Buffalo School of Medicine and Biomedical Sciences and Dental Medicine. McGuire recognized the teamwork demonstrated by the health system's labor partners during his tenure. "The professionals in our labor unions, especially 1199 SEIU Upstate and CWA, deserve credit for their contributions to our success. They have partnered with us at every step of the way and have enabled us to successfully implement the cost-saving measures and accountability protocols that have helped give rise to today's announcement." Kaleida also announced that, for the first time in five years, it will post a voluntary contribution of more than $5 million dollars to its employee pension plan. In closing McGuire said, "This accomplishment is the first stage of a series of planned objectives, and provides Kaleida Health with the forward momentum necessary to reach these goals. I am optimistic about Kaleida's future, and am confident that these objectives will be met - to the benefit of all of Western New York." -30-
Kaleida Health is the 39th largest health care system in the United States and
the largest health care provider in Western New York. More than one million
patients are seen annually at Buffalo General Hospital, The Women and Children's
Hospital of Buffalo, Millard Fillmore Suburban Hospital, DeGraff Memorial
Hospital, Millard Fillmore Gates Circle Hospital and numerous community health
care centers. The system includes long-term care facilities, as well as visiting
nurse and home care services.
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