U. trustees OK budget for clinics, hospitals and campus projects
After expenses, the approved hospital budget shows an operating income gain of $11 million — an unusual occurrence as a "litany of horror stories" unfolds around the country of university-affiliated hospitals that have financially gone into the red.
The 2006 budget is about a $50 million increase over last year's budget. Since 2000 U. hospitals and clinics have been in the black.
"It's our goal to keep it that way," said Dr. Lorris Betz, dean of the U. medical school.
That's a goal made a little tougher in the 2006 budget year, affected by a 2.5 percent wage increase, a 13 percent increase in medical insurance for employees and increases in the cost of drug and medical supplies.
Other factors are impacting the ability of the U.'s medical facilities to post bigger profits, at least in the short run.
Richard Fullmer, executive director over U. hospitals and clinics, talked to the board about a limited patient volume growth, startup costs for a new liver transplant program and other "strategic initiatives." For example, there are plans for a major overhaul to the front of the hospital's west pavilion.
With four new trustees digesting those numbers, Michael Perez, U. associate vice president of facilities management, informed the board of another $1 billion in private and public funds the U. expects to spend on capital facilities in the next five years.
A big project in the coming year will be the $127.8 million, 260,000-square-foot Brain Institute, a new research facility to be built where old dormitories currently stand. About $106 million of the cost is expected to be covered by public funds.
Non-state funds will pay for a new student recreation center (student fees will go up as a result) and a new 2,800-square-foot amphitheater and 750-square-foot "green room" for Red Butte Garden.
The U.'s colleges of business and pharmacy will see new and renovated facilities worth over $97 million in non-state monies.
When asked why the U. wasn't going after state funds for the last two projects, Betz said, "It's just been our experience that the Legislature has not funded what would be primarily research facilities," an approach he called "shortsighted."
Trustees wanted more time for discussion before actually prioritizing 23 additional projects listed in a five-year plan.
E-mail: sspeckman@desnews.com
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