The Medical Faculty Associates lost $100 million in fiscal year 2025, suffering heavier losses in the second half despite officials’ March pledge that the medical enterprise would be in a better financial position at the end of the year, financial documents show.
FY2025’s $100 million loss — which GW reported in their consolidated financial statements published at the end of FY2026 Q1 — marks the sixth consecutive fiscal year officials have reported the MFA operated in a deficit of tens of millions of dollars and the enterprise’s second highest loss ever on record following its $107 million loss in FY2024. Officials released the public disclosure of the MFA’s debt, which now exceeds $444 million owed to GW and other lenders, days before their Friday announcement that GW reached a preliminary agreement with Universal Health Services, GW Hospital’s owner and operator, to co-fund the MFA as both parties negotiate a deal to end the University’s financial support for the medical enterprise.
The additional losses reported in the second half of the fiscal year followed a March briefing by Chief Financial Officer Bruno Fernandes and MFA CEO Bill Elliott to the Faculty Senate, which revealed the Medical Faculty Associates — a network of health care providers and faculty linked to GW’s medical school and hospital — lost $48 million in the first half of FY2025, which covered July 1 through Dec. 31, 2024. At the time, officials said they were confident the enterprise’s financial standing would improve by the end of FY2025 compared to FY2024 — and did reduce losses by $7 million.
“We’re going to come to the end of the year, we’re going to look at this number, and it’s going to be better,” Elliott told the Faculty Senate in March. “It’s not going to be where any of us want it to be, I’ll tell you right now. We’re not going to solve every problem at the MFA this fiscal year.”
The report also states that GW has in total loaned $370,904,000 to the MFA by the end of FY2025 since before GW began reporting loans to the MFA on their financial statements, with more than $98 million being loaned during FY2025. The medical enterprise has accumulated $117 million in debt to other entities outside of GW since GW gained control, which could include EagleBank, who was the MFA’s primary external lender as of FY2023.
Elliott addressed the Faculty Senate in March after the MFA had lost $48 million in the first half of FY2025 and outlined ways in which he was going to bring the MFA back to profitability, including that officials were renegotiating cleaning and real estate contracts, maximizing doctors’ schedules, increasing patient access and lowering the abandonment rate to decrease the percentage of incoming calls that customers drop before speaking to an agent.
Elliott said in March the operational changes officials had implemented during the first half of FY2025 would be reflected in the MFA’s performance in the second half of the fiscal year that would lead to a lesser number in losses in the second half of the year, though the enterprise lost more in the second half compared to the first half of the year, totaling roughly $52 million lost.
Officials declined to comment why the MFA’s losses increased by $4 million during the second half of FY2025. Officials declined to comment on when they realized the MFA was on track to lose more than it did during the first half and the steps they took to respond to those losses.
Elliott also said the MFA has worked to increase its revenue by ensuring it fully utilizes its equipment by performing additional tests and procedures, when applicable to the patient, that would bring in additional revenue for the enterprise, something officials previously weren’t doing. He said in March he expected those efforts would save the MFA $11 million and make improvements to solve its “operational issues.”
Officials also declined to comment on if the MFA has solved all of its “operational issues.” Officials also declined to comment on why the MFA saved only $7 million this year compared to FY2024’s losses after officials implemented these changes and why they didn’t save the $11 million Elliott pledged.
Financial documents to date show the MFA has lost at least $78 million each year for the last four fiscal years — $100 million in FY2025, $107 million in FY2024, $78 million in FY2023 and $78 million in FY2022, which has resulted in GW and other lenders loaning the medical enterprise hundreds of millions of dollars to keep afloat.
The MFA spent more than $503 million and pulled in more than $393 million in revenue in FY2025, operating in a slightly less than $110 million budget gap. Both the medical enterprise’s expenses and revenue increased in FY2025 compared to FY2024, where the MFA spent more than $485 million and brought in slightly more than $377 million in revenue.
The MFA’s patient care revenue decreased more than $4.5 million in FY2025 to $308 million, compared to $313 million in FY2024. The medical enterprise’s revenue labeled as other increased by more than $22.5 in FY2025 to $57.5 million, compared to $35 million in FY2024.
In FY2025, the MFA’s expenses fluctuated more significantly than its revenue streams, with medical supply costs rising $24.6 million to $89.4 million, up from $64.8 million in FY2024. The medical enterprise’s expenses labeled as other dropped by $9.6 million in FY2025 to $26.8 million, down from $36.4 million in FY2024, while its interest expenses increased by slightly less than $3.8 to $20.6 million in FY2025 from $16.8 million in FY2024.
Elliott said in March the MFA will likely incur some additional expenses while onboarding MFA staff for the Cedar Hill Regional Medical Center GW Health in Ward 8, which opened in mid-April.
Barbara Bass, dean of the School of Medicine & Health Sciences and then-MFA CEO, in October 2022 attributed the drop in MFA revenue to the COVID-19 pandemic. Fernandes in March said the MFA has a “structural imbalance,” and officials were looking at the “various options” they could take to mitigate the medical enterprise’s losses.
Officials have pledged for years they were working to bring the MFA back to profitability, though they long remained tight-lipped about specific ways they were working to do so until they announced last month they had entered talks with UHS. They have faced mounting pressure and skepticism from the Faculty Senate, who have called for increased financial transparency from officials as the MFA continued to rack up tens of millions of dollars in debt each year.
FY2025 marked the first full fiscal year under Elliott’s leadership, who GW and the MFA’s Board of Trustees appointed as interim CEO in May 2024 and promoted to the permanent role in October after they decided it was necessary to bring in “full-time leadership” to helm the medical enterprise after its continued financial losses. Officials said Elliott would direct day-to-day operations and instill “financial stability” into the MFA.
Elliott succeeded Bass, who had served as MFA CEO since January 2020 while concurrently holding her position as dean, during which the MFA in FY2020 lost $43 million.
Officials pledged numerous times that bringing in Elliott would help them solve the MFA’s debt issues. Elliott has served in the role of CEO for roughly a year and a half, where the medical enterprise saw its second-highest loss ever on record.
Officials declined to comment on why the MFA hasn’t seen a reduction in its debt despite Elliott being in the CEO role for roughly a year and a half.
GW’s initial deal with UHS states GW will continue to fund the MFA’s clinical education as the enterprise’s physicians teach SMHS’ students, residents and researchers. Elliott said the framework the parties are negotiating will permit UHS to directly employ clinical and non-clinical staff and faculty, who would remain faculty members at GW.
Elliott said in an email to the MFA’s stakeholders Friday announcing GW’s initial deal with UHS attributed the mounting debt to financial strain during the COVID-19 pandemic, shifts in the national health care landscape and insufficient funds to support GW Hospital’s clinical services.
“It is important to underscore that this is not a done deal — we have many complicated and material issues to work through in this next phase of the negotiations,” Elliott wrote in the email Friday.
