National Jewish Health enjoyed especially strong support from our donors this year. Contributions increased more than $8 million over the prior year. In fact, National Jewish Health raised over $30 million in 2013, more than any year in our 114-year history.
The federal budget issues created challenges for hospitals nationwide, and National Jewish Health was no exception. Federal sequestration resulted in across-the-board funding cuts in governmental programs such as Medicare. Additionally, Medicare’s “gap fill” method of determining rates for molecular laboratory testing resulted in no payment for these tests from January through October. In spite of these challenges, National
Jewish Health clinical programs continued to grow. Patient visits increased almost 5 percent year over year. As a result of the decreases in reimbursement, however, net patient service revenue remained flat.
Federal budget pressures continue to change the face of research around the country. With the budget cuts at the National Institutes of Health, research grant funding fell 11 percent in fiscal year 2013. National Jewish Health continued to refine its research to meet the challenges of this new funding environment, focusing on close collaborations between basic and clinical scientists, efficiencies of the research support infrastructure and pursuit of new funding sources. The success of these efforts was evidenced by a more than 12 percent increase in non-federal grant revenues and large grant awards received from the Colorado Health Foundation and the Patient-Centered Outcomes Research Institute.
National Jewish Health maintains a well-diversified investment portfolio. In spite of turbulent markets in the last months of the fiscal year, we recorded close to $11 million of investment returns. Overall, revenues increased close to 7 percent over 2012. Due to tight expense controls, total expenses increased only 1 percent year over year.
National Jewish Health continues to focus on our 10-Year Strategic Plan: The Decade of Innovation. Our personalized approach to coordinated patient care and the integration of research in our clinical programs position us well for success in the continually changing health care environment. We continue to investigate opportunities to enhance our programs while maintaining our financial strength. Toward that end, we executed two letters of intent to partner with others to expand our clinical programs. Both of these opportunities preserve our independence and our mission. We are currently evaluating these opportunities and will continue to explore others during the coming year.
Overview of Revenue and Expenditures
*Data in Millions