Rahn: "Considerable uncertainties" at UAMS | Arkansas Blog

Wednesday, March 13, 2013

Rahn: "Considerable uncertainties" at UAMS

Posted By on Wed, Mar 13, 2013 at 11:49 AM

University of Arkansas for Medical Sciences Chancellor Dr. Dan Rahn has emailed UAMS employees a letter with links to the Deloitte Consulting study (part one and part two) on a potential affiliation with St. Vincent Health System that says much the same thing he told the Times in an interview last week: That the savings would be between $38 million and $63 million, that UAMS will study the assumptions made by the report and that it decide by mid-April whether to continue to pursue an affiliation.

Rahn also spells out the hospital and medical school's budgetary status:

UAMS continues to face considerable uncertainties regarding key components of the funding support for all aspects of our mission. Federal budget sequestration is resulting in reductions of NIH funding and Medicare payments for hospital and physician services as well as graduate medical education funding. The duration of these reductions and elements of any still-to-be negotiated federal budget compromise are unknown at this time.

Although considerable progress has been made at the state level with regard to the development of a consensus regarding implementation of the insurance exchange and Medicaid components of the Affordable Care Act, there is still no agreement on a path forward. We face uncertainty in regards to our core state funding as well. The Arkansas state Legislature is now debating multiple tax and budget reduction strategies. The potential impact of the various proposals on higher education funding is uncertain but is cause for concern. Reduction in state revenue could have an impact on the state appropriation that comprises 9 percent of our operating budget.

Rahn said that UAMS future success depends on its willingness "to explore bold, innovative approaches to our education, research and patient care missions."

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