The University of Arkansas for Medical Sciences projected a budget deficit of $72 million in December. As a portion of its entire budget of $1.2 billion — 6 percent — that may not sound like much, but in human and service terms it meant that UAMS had to lay off 258 employees and leave another 350 positions unfilled.

But Interim Chancellor Stephanie Gardner told UAMS employees in a State of the University address Tuesday that UAMS has made up $32 million of that deficit, which makes it only $1.7 million short of its budgeted deficit of $39 million, and that the institution will present a zero deficit budget to the UA System Board of Trustees when it meets in May. She said no future layoffs are planned.

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Gardner also said UAMS has rehired 29 employees who were part of January’s reduction in force. Employees who were laid off will be considered for new positions as they open, she said.

Using PowerPoint slides, Gardner noted UAMS state funding totaled $107,994,401 for fiscal year 2018, down from a high of $120,112,330 in FY 2014. The legislature reduced funding on the theory that the Affordable Care Act’s Medicaid provisions would provide reimbursement to UAMS from newly insured patients. Core revenue, through the Revenue Stabilization Act, was $86,456,661; the remaining comes from various funds, such as the Educational Excellence Trust Fund that goes to state institutions of higher education. UAMS must use some of the money for its Medicaid match.

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Along with layoffs, UAMS has suspended work on deferred maintenance to save $4 million.

Meanwhile, UAMS and Arkansas Children’s Hospital are in negotiations over a new affiliation agreement between the two institutions. As of now, all doctors at Children’s Hospital are employees of UAMS.

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