An increase in net patient service revenue helped grow total revenues at the Medical College of Wisconsin this fiscal year, according to recent financial filings.
The Medical College reported a 6 percent increase in total revenues in the first nine months of this fiscal year, compared to the same period in 2017. Total revenues were $854 million this year, up from $806 million in 2017.
The growth was driven in part by a 7 percent increase in net patient service revenues, as well as an 11 percent increase in revenue from contract fees associated with Children’s Specialty Group, a joint venture of Children’s Hospital of Wisconsin and the Medical College.
The revenue growth offset a 5 percent increase in total expenses in the first nine months of the fiscal year. The Medical College’s net operating margin grew from 3.7 percent in 2017 to 4.8 percent in 2018, according to the filings.
The increase in expenses was largely driven by a 7 percent increase in expenses associated with faculty and staff salaries and fringe benefits.
Dr. John Raymond, president and chief executive officer of the Medical College, recently announced MCW plans to make more investments in the research arm of the institution, including a $43 million planned renovation of the Basic Science Building on its Wauwatosa campus. Raymond said the project will be paired with an investment in new hires, as well as existing employees.