Regional 1 CFO lays out pro forma showing large support payments, projected revenue growth and current operating loss

Jim Proctor, chief financial officer for Regional 1 Health, presented the hospital’s long-term pro forma and described the assumptions behind it, including a like‑for‑like campus replacement, modest service‑line expansion and built‑in inflation for payer reimbursement and supply and labor costs. "We have $656,000,000 in budgeted net revenue for the current fiscal year," Proctor said, and projected that figure would grow to about $853,000,000 by fiscal year 2031 under a roughly 4.6% compounded annual growth rate.

Proctor said the hospital is budgeting an operating loss in the current fiscal year — about $153,700,000 before support and nonoperating income — and that support payments are a substantial balancing item. "In fiscal year 2025, we got about $163,800,000" in support payments, he said, adding that roughly 78% of those support dollars are state and federal, about 15% come from Shelby County, and about 6% from other states. Committee members pressed for more granularity: they asked for an inpatient discharge mix and service‑line breakdown for each fiscal year so the projected revenue and costs can be reconciled with expected changes in clinical services. Proctor agreed to provide additional narrative and line‑item breakout and said some items — for example, further program management work with UT — will be part of the next steps.