MU Health Care $56 million under budget 8 months into fiscal year

COLUMBIA, Mo. (KMIZ)

EDITOR'S NOTE: Terminology has been corrected in the headline and story.

MU Health Care's operating margin for the current fiscal year remains well below budget.

The health care group posted a $56 million budget shortfall between the start of the University of Missouri's fiscal year from July through February. The report will be presented to the Board of Curators' Health Affairs Committee on Thursday.

According to numbers in documents created for the UM System's Board of Curators, finances come in at $45.4 million behind budget in Columbia and $10.8 million behind in Jefferson City.

The Columbia operations saw a profit of $4.3 million, while Jefferson City operations saw a $3.4 million loss.

"MU Health Care, like many health systems nationwide, is feeling financial pressure largely due to higher labor and supply costs, along with the lingering effects of last year’s out‑of‑network period with Anthem Blue Cross Blue Shield," MU Health Care Spokesperson Eric Maze said in a statement.

The biggest expenses were seen in "supplies" and "other expenses," with overall budgets going over by $19.2 million and $33.9 million, respectively.

Maze adds that revenue has been improving and the group developed a financial revenue plan that "focuses on increasing access and patient throughput, reducing labor and supply expenses and strengthening quality and efficiency."

MU Health Care did not respond to questions about details of the plan or whether workforce cuts are being considered.

Both unions LiUNA and the Missouri Nurses Association both report they have not heard of any layoff discussions involving MU Health Care or between their members.

However, union leaders are making their stance clear. LIUNA Local 955 representative Andrew Hutchinson said “We do not believe there is any fat to trim or corners to cut when it comes to service and maintenance workers at MU Health Care. Our essential workers are already stretched thin as it is.”

According to prior reporting, MU Health Care reported a $45 million operating gain for the first half of fiscal year 2025. Jefferson City operations at Capital Regional Medical Center also turned a profit with a $4.2 million operating gain.