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District’s Only Hospital East of the Anacostia River Posts Small Profit
Washington, D.C. – Yesterday, the accounting firm KPMG presented its final audit to the United Medical Center (UMC) Board of Directors. The audit painted a favorable picture for the period immediately following the District’s July 9th, 2010 foreclosure. The audit of the period from July 9, 2010 to the end of the fiscal year on September 30, 2010 showed a net operating income of $1.4 million; a figure made all the more impressive given that it excluded $1.6 million of undesignated and unspent contingency reserves. KPMG’s audit put UMC’s net asset value at approximately $50 million.
“The final KPMG audit underscores the improvement of United Medical Center’s finances through the last year,” said Councilmember David Catania, Chairman of the Committee on Health. “UMC is now in its eighth month of profitability, which is the result of a lot of hard work by many people, especially the hospital’s management and medical staff.”
Auditors cited one material weakness in the hospital’s financial controls, but representatives from KPMG told Board members that the finding was not unexpected given the circumstances surrounding the foreclosure and the fact that the former custodians of the financial records were in an adversarial legal relationship with the District. The auditors, however, told the Board that they observed significant progress in financial record keeping during the time that the audit was conducted.
United Medical Center is the only hospital located east of the Anacostia River. UMC was near bankruptcy in 2007 when the District assisted in its sale with $79 million of grants and loans. Since its sale on November 7, 2007, UMC has made major improvements in quality of care, customer service, and patient safety. UMC’s leadership team has replaced most patient care diagnostic, monitoring, and therapeutic equipment. Over 75 physicians have joined the medical staff in recent months.
In September of 2010, Children’s National Medical Center opened a $14 million state-of-the-art Pediatric Emergency Department on the UMC campus. Recently, UMC began a partnership with Washington Hospital Center to enhance its obstetrics program. |
