--THE---
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University ofVermont
University ofVermont
MEDICAL CENTER
HEALTH NETWORK
Central Vermont Medical Center
University of Vermont Medical Center Obligated Group University of Vermont Medical Center, Inc. Central Vermont Medical Center
Bond Disclosure Report Covering the Fiscal Year Ended September 30, 2015
Table of Contents
Officer's Certificate and Bond Covenant Calculations
Auditor's Report
Hospital Data & Information
Adequacy of Insurance and Consultant's Letter
Approved Budget for Fiscal Year 2016
---THE---
---THE---
University ofVermont
University ofVermont
MEDICAL CENTER
HEALTH NETWORK
Central Vermont Medical Center
University of Vermont Medical Center Obligated Group University of Vermont Medical Center, Inc. Central Vermont Medical Center
Bond Disclosure Report Covering the Fiscal Year Ended September 30, 2015
Officer's Certificate Bond Covenant Calculations
University of Vermont Medical Center Obligated Group University of Vermont Medical Center, Inc. Central Vermont Medical Center Officer's Certificate Pursuant to the Amended and Restated Master Trust Indenture dated as of March 1, 2004 Fiscal Year Ended September 30, 2015 I, Todd Keating, do hereby certify that: 1. I am the Chief Financial Officer of University of Vermont Health Network (UVMHN) and an Obligated Group Representative, under the Amended and Restated Master Trust Indenture, dated as of March 1, 2004, by and in between UVM MC and People's United Bank (f/k/a Chittenden Trust Company), as Master Trustee as amended by the Supplemental Indentures for Obligations 2-4 and 8-10 all amended or dated as of March 1, 2004 (the "Master Indenture"). 2. Attached as Exhibit A is a true, correct and complete copy ofUVMHN's Audited Financial Statements for the fiscal year ended September 30, 2015. 3. As of September 30, 2015, the Long Term Debt Service Coverage Ratio of the Obligated Group was 5.06. Accordingly, the Obligated Group is in compliance with Section 3.07(a) of the Master Trust Indenture. 4. As of September 30, 2015, the Obligated Group had Unrestricted Cash and Investments of $591,9 13,000 which is equal to 183 days of operating expense. 5. As of September 30, 2015, the Total Debt to Capitalization Ratio of the Obligated Group was 34.01% 6. To the best of my knowledge, the Obligated Group is not in default in the performance of any covenant contained in the Master Trust Indenture. 7. Included herein, as a supplement to the Audited Financial Statements ofUVMHN (Exhibit A), is the report of the UVMHN independent certified public accountants as to the Long-Term Debt Service Coverage Ratio and whether, to the best of their knowledge, UVM MC Obligated Group is in default in the performance of any covenant contained in the Master Trust Indenture.
All terms used herein and not otherwise defined are used as defined in the Master Trust Indenture. Witness my hand this ~ day of February, 2016.
Todd Keating, Network CFO University of Vermont Health Network
UVM MC OBLIGATED GROUP For the Period Ended September 30, 2015
Covenant • Debt Service Coverage Ratio ($in OOO's) UVMC Obligated Group
Net Income from Operations Nonoperating Revenue* EXCESS (DEFICIENCY) of REVENUES OVER EXPENSES
$81,259 $5,819 $87,078
Depreciation Interest Expense Income Available for Debt Service
$54,614 $15,869 $157,561
Maximum Annual Debt Service (MADS)
$31,135
Debt Service Coverage Ratio
5.06x
Consultant Call: ie
~617)
Principal 531-6275
(&17) 531-6277
de bra .goddeau@i ntegrogroup. com
January 20, 2016 Mr. Michael Hawkins Director, Risk Management The University of Vermont Medical Center 11 l Colchester Avenue Burlington. VT 0540 I Re: Insurance Program Dear Michael:
I am \niting this letter to advise that it is my opinion that the limits of insurance in the current property & casualty insurance program for The University of Vermont Medical Center , including Jines of coverage, is adequate- to address existing exposures. as compared to industry standards for Not for Profit Health Care Institutions. However, please be aware that we cannot state or warrant that the current limits are adequate to cover any Joss that The University of Vennont Medical CenteJ may incur. Higher limits are available for all lines of coverage and should be considered.
an
Pleas.e let us know of any questions. Thank you. Sincerely,
Debrn Goddeau
·"'""~TH
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University"/Vermont
University ofVermont
MEDICAL CENTER
HEALTH NE:T'YVORK
Central Vermont l\1edkal Center
University of Vermont Medical Center Obligated Group University of Vermont Medical Center, Inc. Central Vermont Medical Center
Bond Disclosure Report Covering the Fiscal Year Ended September 30, 2015
Approved Budget for Fiscal Year 2016
·~
FY16 BUDGET P&L DATA ENTRY SHEET --
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OBLIGATED GROUP
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-
Revenue Gross Patient Service Revenue
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Total Deductions
-
-
-
-
~
-+-
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FY16 Budget 2,818,450,426 1,590,718, 154 -
Net Patient Service Revenue - - -+% Collected ----+Other Revenue Total Other Revenue -TOTAL UNRESTRICTED REVENUE & OTHER
1,227 '732,272 43.6%
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1,330,892,410
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Total Physician FTEs Total Staff FTEs (Incl Travelers)
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~
623 7,035
-
Oi;!erating Exi;!enses Salaries & Fringe Benefits Salaries: Physicians Salaries : Staff, Res, Travelers, & MLPs Total Salaries -
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163,891 , 132 458,069,396
621,960,529 -+-
177,891,509
Payroll Tax & Fringe Salaries, Payroll Taxes, and Fringe Benefits
Non-Salary Expense ~edical & Surgical Supplies Pharmaceuticals ~ther Supplies Purchased Services Maintenance/Lease/Utilities _Qther Expenses Insurance Depreciation and Amortization ._J nterest Expense Provision for Bad Debts
799,852,037
~ -
-
--
....
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-
-
t
.
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' -
-
--j-
--
82,601 ,663 85,969,100 14,024,870 54,878,191 74,939,301 73,441,039 13,534,678 60,846,465 19,364,841 ---
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Total Non-Salary Expense TOTAL EXPENSES
1--
-
- -
INCOME (LOSS) FROM OPERATIONS Income (Loss) Margin - ~on-Operating Revenue lnc/(Dec) in Unrestricted Net Assets
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-+
479,600, 147 1,279,452, 184 51,440,226
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3.87% 15,595,738
67,035,964
Book3 OB GROUP
1/29/2016
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