Key Messages: Administrative Affairs Meeting August 17, 2017

Basic Science and Clinical Departments, Centers


Health System Financials (Doug Lischke)

  • Mr. Lischke provided an overview of unaudited Health System financials for FY2017.
  • Overall the balance sheet remains very healthy, assets total $4.5B and Investments returned 12.4% for the fiscal year.
  • The $39.2M operating margin well exceeded budget, driven by Medical Center volume and higher acuity / CMI.
  • FY2017 was a successful year similar to FY2016, with a good margin near 2%. Operating cash flow of $186.2M is strong; approximately $10M lower than last year.
  • Mr. Lischke reported that the long range (7-year) financial plan from UPG, SOM and MC came together smoothly and reflects continued solid performance expected: an anomaly in the industry. There is, however, considerable uncertainty in the industry. 


Consolidated SOM/UPG Financials (Allison Holt)


Mouse Per Diem Costs (Dr. Steven S. Wasserman)

  • Dr. Wasserman reported that per diem mouse costs are decreasing from $1.05 to $0.99.


Renting External Space (Dr. Steven S. Wasserman, Jessica Hurley Smith)

  • Dr. Wasserman stated that there is an effort underway to shorten the timeline for renting external space, due to the arduous process required.
  • Administrators are encouraged to put in future initial leasing requests to Ms. Smith, who will then put them in contact with UVA Real Estate to begin the detailed form and state process, which requires that contracts meet state agency requirements.
  • Dr. Wasserman stated that due to the length of time it takes to execute a lease, allowing six (6) months is wise; also, the market for property close to grounds is scarce. 


Budget System Project Update (Anelia Farhi)

  • Ms. Farhi stated that there are extenuating factors affecting the Budget System Project, including a tentative plan for the University to restructure its accounting structure during the year after Ufirst and Workday implementation.


Re-introduction of Susan Rumsey (Anne Kromkowski)

  • As of July 31, 2017, Susan Rumsey returned to her previous role as UPG Chief Financial Officer.
  • Ms. Kromkowski expressed gratitude on behalf of the group to Beth Allen, who did an excellent and effective job of fulfilling her duties as interim CFO in Ms. Rumsey’s absence.


UPG Accounting Update (Beth Allen)

  • Ms. Allen stated that with the transition to Epic, opportunities exist to streamline processes and UPG is reviewing options when possible.
  • There has been a change to the allocation of the registration fee as established in the current MOU with the Medical Center. The fee will now be allocated as a fixed amount instead of a percentage. The fee will be split by 12 and distributed 1/12 each month beginning in July, based upon Net Patient Service Revenue.
  • Discussions are underway with the Medical Center regarding simplifying the facility fee process going forward. Updates will be provided once further discussions have occurred.
  • At the end of FY2017, UPG worked with the auditors to extend the amortization period for the CRP pension plan. Expenses will be amortized for 12 years, which is the remaining expected lifetime for participants (rather than the remaining expected time of service, which was 2.5 years).
  • Chargebacks will continue at the budgeted amount of $12.9M for FY2018.


Departmental Business Development Update (Dave Stebbins)

  • Mr. Stebbins introduced the UPG Business Development team, and outlined the services they provide.
  • The Business Development team consists of subject matter experts who are available to ensure consideration and standardization of financial, legal, HR and IT matters for external projects outside of UVA grounds.
  • Services available include project management, strategic planning, due diligence/vetting, coordination of legal, financial, credentialing and facilities services and Telemedicine.
  • Mr. Stebbins stated that the Business Development team intends to set up meetings with each department to determine how they can be of assistance. Additionally, department administrators are encouraged to contact the Business Development team as project needs arise.



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