University of Utah Health details scale, margins and cash reserves; CEO Mike Good to retire

Mike Good, chief executive officer of University of Utah Health and senior vice president for health sciences, told the committee that University of Utah Health is an academic medical center that integrates patient care, education and research. He said the system includes five hospitals, roughly 900 hospital beds, 12 community health centers and partnerships spanning multiple states.

Why it matters: University of Utah Health is the state's largest academic medical center and a major economic actor. Good said the health enterprise had approximately $3.4 billion in operating revenue in 2024 and that the hospital and clinics line is a people-driven business: about 70% of hospital-and-clinic expenditures are for staff. The system employed about 16,000 people, Good said, including nearly 10,000 nurses and related staff, and transfers well over $100 million a year from hospital operations to support research and education.

Patient care, research and education: Good and his executive team described links between clinical advances and research: he gave patient examples of gene therapies and the Huntsman Cancer Institute's research translating into clinical practice. He highlighted regional partnerships that allow patients in smaller facilities to receive follow-up care locally after complex treatments in Salt Lake City.

Margins, cash and expenditures: Good said the health system aims to maintain a roughly 6.5% operating margin to fund technology, facilities and research. He noted that the system's days cash on hand (about 63 days) lags national peer medians (Moody's A2 peers average much higher), and emphasized the need to replenish reserves after pandemic-era pressures and wage inflation. Good said the system's nonoperating revenue includes donations, federal grants and periodic COVID-era stimulus funds; state appropriations for graduate medical education historically amount to about $5 million per year, with additional targeted appropriations in recent years.

Graduate medical education and workforce: The committee asked about residency capacity and the Medicare-based funding model for graduate medical education. Good said the system trains about 1,000 residents and fellows and that growth requires either additional Medicare GME slots or internal funding; about one-third of residency slots are funded internally by the institution. Good said the system continues to seek ways to expand graduate medical education in partnership with the state and other health systems to address rural physician shortages.

Uncompensated care and regional role: Good said University of Utah Health provides roughly $250 million in uncompensated care annually and serves as the academic medical center for a multi-state region; he described the system's economic impact and role as the region's referral center for specialized services.

Leadership note: Good told the committee he is retiring this week; the committee and members thanked him for his service. Dan Lundrigan (CEO of University of Utah Hospitals and Clinics), Gina Holly (chief operating officer) and Charlton Park (chief financial officer) joined the testimony and answered operational questions.

Ending: Good told the committee that people are the system's greatest asset and urged continued partnership with the Legislature on workforce, graduate medical education and capital projects.