UC Davis

Completes Fiscal Year with No Major Surprises

(SACRAMENTO, Calif.)- UC Davis Medical Center has just completed its 2017/2018 fiscal year on June 30, wrapping up the year’s finances nearly as expected, when budget amounts are adjusted for the unexpected resolution of a legal case with Sacramento County.

UC Davis Medical Center closed out the fiscal year with net operating revenue of $100 million, and an additional $98 million from a November 2017 agreement reached with Sacramento County.The settlement resolved the County’s payment to the medical center for emergency and specialty medical care provided to the County’s indigent patients and jail inmates over a multi-year period stemming back to the 2008 recession. The agreement calls for the County to make payments on the $89.6 million over the next 15 years. While none of these funds have yet been received, the amount was required to be recognized in the 2017/18 fiscal year under accounting guidelines. The funds have been pre-committed to ongoing capital projects that will improve care delivery for all patients in Sacramento County.





In FY17/18, the medical center had $149 million in capital spending, as the hospital continues upgrades needed to comply with the state of California’s 2020 and 2030 seismic standards. Overall, the medical center expects to spend nearly $197 million in capital expenditures in FY18/19, part of nearly $3 billion in total capital spending needed to meet the state’s 2030 seismic requirements. These facilities improvement are important not only to meet state earthquake requirements, but to improve the hospital facilities that will be utilized by all patients coming to UC Davis Health.

As the Sacramento region’s only academic medical center, UC Davis has an important social responsibility to both create and share knowledge that advances health and health care delivery, and to also provide health care services to the area’s underserved patients. In FY 2017/18, 36.8 percent of the medical center’s approximately 35,701 admissions were Medi-Cal patients – the largest payer group for the medical center.This is comparable to the prior year’s Medi-Cal admissions of 36 percent. Similarly, in the UC Davis Children’s Hospital, 59 percent of FY18 admissions were Medi-Cal, compared with 58 percent in FY17.

During the FY 17/18 fiscal year, UC Davis Health increased its partnerships with other care providers in the Sacramento community, including community health clinics and federally-qualified health centers (FQHCs), to help improve care delivery across the region, beyond the Sacramento campus. UC Davis Medical Center is also setting aside $25 million from its net FY17/18 proceeds specifically for Medi-Cal beneficiary assistance programs in the future.

UC Davis Medical Center did see an increase in the number of complex pediatric cases in FY17/18, as the region’s only Level 1 (most advanced) adult and pediatric trauma center, and the only dedicated pediatric emergency room in the region. The university’s new Children’s Surgery Center will open in the hospital this fall, increasing the number of specialty operating rooms available to UC Davis Health pediatric surgeons. UC Davis Children’s Hospital, which is within the medical center, offers the broadest range of pediatric specialty care in the region, and in 2017 the hospital was re-verified as a Level 1 Children’s Surgery Center by the American College of Surgeons.

UC Davis Medical Center did not see any material changes in the number of employees, its mix of payers, expenses, or in overall patient volume against its planned budget for the fiscal year. The FY 17/18 financial results also include UC Davis Health’s 17 network locations around Sacramento, Placer and Yolo Counties, which also provide primary and specialty care delivery, as part of delivering world-class care, close to home.

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