Health Department Forms Folder 0065, 1999-2001

NYC 9/11 Public Portal Document

Dr. Gil/HIIC Achievements 10/25/99

One key measure of an organization's financial health is its current ratio, i.e., the ratio of its current assets to its current liabilities. In FY94, HHC's current ratio was 1.02; in FY99, it was 2.04.

In FY94, the City provided a subsidy of $329 million to HHC's operations. By FY96 that subsidy had been completely eliminated. Instead, the City purchases the services it needs for prisoners, uniformed personnel and the County morgues from HHC; in FY99 the purchased services cost the City about $54 million.

In FY99, HHC ended the year with a positive balance on an accrued basis for the fourth year in a row. In FY93, FY94 and FY95, HHC had net losses of $293 million, $142 million and $147 million respectively. In FY96 the turnaround was achieved with HHC showing a net gain on an accrued basis of $143 million, followed by net gains of $29 million in FY97, $21 million in FY98 and $16.6 million in FY99.

• Achieving a positive balance sheet has enhanced HHC's ability to invest in its plant and equipment. In FY98, it initiated the reconstruction of two hospitals, Kings County and Queens, and participated with the City in the successful issuance of approximately $295 million in DASNY bonds.

• In addition, HHC issued $320 million of its own bonds in FY97 to finance capital improvements across the system and, in FY98, refinanced $219 million of its outstanding 1993 Series A bonds at a savings of $10 million.

Managed Care

• Between FY94 and FY99, enrollment in MetroPlus, HHC's Medicaid managed care plan increased by 113%, from 28,200 members to 59,987 members.

• In addition, over the last five years, HHC has entered into 105 contracts with 16 different Medicaid managed care organizations to provide health care services to their members.

Within the last year, HHC has also successfully negotiated contracts with commercial insurers, notably, corporate contracts with HIP and Aetna/US Healthcare for hospital services and several facility-specific contracts with HIP for primary care and specialty services.

NYC-WTC 000137988