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When Rogers does well, where does the money go?

10/25/18 11:55:am

FY18 where the money goes header.jpg

Rogers is a not-for-profit system, but still generates earnings beyond expenses. The difference between a for-profit and not-for-profit organization is what happens to those excess funds. Instead of returns to investors and shareholders, the money is directed to advance Rogers’ mission.

Two-thirds of our operating budget is for labor expenses, while 10% goes to purchased services and supplies, and 7% to other miscellaneous expenses. The remaining 17% margin is our EBIDA, which is revenue minus expenses.

That margin is then used to expand the mission of our organization. Based on FY18 performance, 45% of our EBIDA is being used to maintain and open new treatment locations, 33% is going to the Charitable Giving Fund and the Foundation, 17% will be used for this year’s employee Gainshare bonus, and a small fraction goes to debt service.

“When we have a successful financial year, the money truly makes a difference for our patients and employees," Arnie Stueber, chief financial officer explains. "The Charitable Giving Fund and Hospital Foundation and Gainshare program will see the most impact. We will also spend 17.1% more on new services and programs than we did the previous year.”

“I am proud that Rogers is a good financial steward of resources,” shares Pat Hammer, president and CEO. “We are able to allocate a majority of earnings back to expanding programs and services so that we can help more people, supporting our charitable giving program to assist patients in financial need, and funding the Gainshare program, which rewards our dedicated and hardworking employees.”

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