REVISED
May 30, 2014
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS
MEETING OF THE
MEDICAL CENTER
OPERATING BOARD
FOR THE UNIVERSITY OF
VIRGINIA MEDICAL CENTER
JUNE 5, 2014
UNIVERSITY OF VIRGINIA
MEDICAL CENTER OPERATING BOARD
Thursday, June 5, 2014
8:15 am – 11:15 am
The Great Hall, Garrett Hall
Committee Members:
Stephen P. Long, M.D., Co-Chair
Edward D. Miller, M.D., Co-Chair
William H. Goodwin Jr.
Victoria D. Harker
Andrew K. Hodson, MB.Ch.B
Michael M.E. Johns, M.D.
William P. Kanto Jr., M.D.
Ex Officio Members:
Teresa A. Sullivan
Nancy E. Dunlap, M.D.
Dorrie K. Fontaine
Robert S. Gibson, M.D.
Constance R. Kincheloe
George Keith Martin
Charles W. Moorman
The Hon. Lewis F. Payne
Patrick D. Hogan
R. Edward Howell
Richard P. Shannon, M.D.
John D. Simon
AGENDA
PAGE
I.
OPENING COMMENTS FROM THE CO-CHAIR
II.
REMARKS FROM THE EXECUTIVE VICE PRESIDENT FOR HEALTH
AFFAIRS
III.
ACTION ITEM

Fiscal Year 2015 Operating and Capital Budgets
IV.
FISCAL YEAR 2014 FINANCE REPORT (Dr. Shannon to
introduce Mr. Larry L. Fitzgerald; Mr. Fitzgerald to
report)
V.
BUCHANAN ENDOWMENT IMPACT REPORT (Dr. Shannon to
introduce William D. Steers, M.D.; Dr. Steers to
report)
VI.
EXECUTIVE SESSION
 Discussion of proprietary, business-related
information pertaining to the operations of the
Medical Center, where disclosure at this time would
adversely affect the competitive position of the
Medical Center, specifically:
1
6
14
– Strategic personnel, financial, and market and
resource considerations and efforts, including:
potential joint ventures or affiliations;
Neuroscience Center of Excellence; other
marketing and growth efforts including population
health and other clinical initiatives; review of
Health System Clinical Strategy Performance
Dashboard and other performance measures and
metrics;
– Confidential information and data related to the
adequacy and quality of professional services,
competency, and qualifications for professional
staff privileges, and patient safety in clinical
care, for the purpose of improving patient care;
– Consultation with legal counsel regarding
compliance with relevant federal and state legal
requirements, licensure, legislative, and
accreditation standards; all of which will
involve proprietary business information and
evaluation of the performance of specific
personnel.
The relevant exemptions to the Virginia Freedom of
Information Act authorizing the discussion and
consultation described above are provided for in
Section 2.2-3711(A)(1), (6), (7), (8) and (22) of the
Code of Virginia. The meeting of the Medical Center
Operating Board is further privileged under Section
8.01-581.17 of the Code of Virginia.
PAGE
VII.
RETURN TO PUBLIC SESSION: REPORTS BY THE VICE
PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MEDICAL
CENTER (Mr. Howell)
A.
Vice President’s Remarks
B.
Dean, School of Medicine’s Remarks (Nancy E.
Dunlap, M.D.)
C.
Operations Report (Mr. Howell to introduce Mr.
Robert H. Cofield; Mr. Cofield to report on
Operations)
D.
Capital Projects
E.
Health System Development
17
18
19
30
32
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
June 5, 2014
COMMITTEE:
Medical Center Operating Board
AGENDA ITEM:
III. Fiscal Year 2015 Operating and Capital
Budgets
BACKGROUND: The Medical
budgets are consolidated
At its June meeting, the
proposed budget based on
Center Operating Board.
Center’s operating and capital
with the University’s overall budget.
Board of Visitors acts on the
a recommendation from the Medical
Larry L. Fitzgerald is the Medical Center’s Associate Vice
President for Business Development and Finance. He has held
similar positions with the University of Pittsburgh Medical
Center and American Medical International. He has extensive
experience with health care mergers and acquisitions, the
Medicare and Medicaid programs, and strategic planning.
DISCUSSION: The Medical Center’s 2014-2015 fiscal plan has been
developed while considering the challenge of providing patient
care, teaching, and research services in an increasingly
changing health care industry. The full impact of the
Accountable Care Act will not be fully realized for a number of
years; however, many of its provisions have already been
effectuated. The impact will be decreased reimbursements from
government payors and an industry-wide erosion of pricing power
with private payors. Nationally and locally there has been
downward pressure on inpatient utilization and growth in demand
for outpatient services. At the same time, cost associated with
providing quality patient care will continue to have upward
pressure due to increases in medical supply, pharmaceutical and
medical device expenses, growing administrative burden, as well
as a shortage of health care workers. These changes require
proactive fiscal planning now to ensure meeting the mission of
the Health System in the future.
To meet these challenges, the Medical Center utilizes a
priority-based budget process to align resource allocations with
Medical Center strategies and goals to achieve the Health System
strategic planning goal to become a top-decile academic medical
center based on quality measures. The Medical Center budget
development process is operationally focused and highly
participatory. Patient care service management, support
function management, and physicians have significant roles in
1
the budget development cycle. The budget process begins with
senior management developing basic budget assumptions, such as
discharges, length of stay, and productivity standards which
drive the number of employees. The budget is consistent with
the Long Range Financial Plan. The final budget provides each
operating unit with a cumulative operating budget that contains
service demand forecasts, required full-time equivalent
personnel, and non-labor expenses.
BUDGET AND OPERATING ASSUMPTIONS
Market Conditions: For FY 2015, discharges are budgeted to grow
1.8% from FY 2014 projected levels. Inpatient demand for
healthcare services from the existing population is expected to
remain flat and demand for outpatient services to grow by 3.2%.
The Medical Center is expected to capture additional market
share in high case mix index (CMI) services by fully
implementing the Centers of Excellence in the strategic plan.
The following table includes historical and projected patient
volumes:
Discharges Medical Center
Discharges Transitional
Care
Adjusted Discharges
Average Length of Stay MC
Average Length of Stay TCH
Patient Days MC
Clinic and ER Visits
Actual
2012-2013
28,859
Projected
2013-2014
28,120
Budget
2014-2015
28,637
305
303
426
54,578
55,218
58,079
5.62
26.43
161,487
824,941
5.74
31.00
161,771
848,840
5.40
28.99
154,640
911,731
Revenues: The Medical Center has seen growth in volumes over
the last year; however, a disproportionate share of the growth
has been Medicaid and Medicare. One of the Medical Center’s
largest challenges is the unwillingness of government payors to
increase their payments commensurate with the increases in
medical delivery costs. Growth in revenues will result from the
impact of increasing volume and negotiated contracts that
include rate increases.
Medical Center volume growth is focused on outpatient
services with continued implementation of the Centers of
Excellence, opening of the Battle Building for pediatric
services, expansion of the Outpatient Surgery Center from eight
operating rooms to 12, and the implementation of the Outreach
strategy.
2
Rate Changes: The Medical Center proposes an overall rate
increase of 5.0% to 7.0%, which is commensurate with rate
increases that will generally be implemented in the hospital
industry.
With regard to compensation, the pay for performance pool
has been established at $8 million, which includes the impact on
benefit costs and is based on a 3.0% salary adjustment with an
October implementation date. Other salary adjustments, such as
market and compensation design adjustments total $4 million,
including the impact on benefit costs.
Expenses: Expenses from operations are projected to increase by
$93.5 million from the FY 2014 projection. Expenses per CMI
weighted adjusted discharges are projected to increase, going
from $10,656 to $10,926 (excluding the Transitional Care
Hospital). The FY 2015 expense per adjusted discharge includes
$11.8 million for implementation of the Centers of Excellence
Strategic Initiative, $4.5 million for the Accountable Care
Organization, and $1.5 million for ICD-10 conversion. Without
the items noted above, the FY 2014 cost per adjusted discharge
would be $10,626 and FY 2015 would be $10,771.
It is anticipated that expense per CMI weighted adjusted
discharge included in the budget will be approximately equal to
the academic medical center median expense as shown in the
University Health System Consortium Operational Data Base.
Previous increases in capital investment will result in
additional depreciation expense of $11.0 million for FY 2015.
Additionally, interest cost on capital investments is increasing
by $2.5 million for FY 2015. The Medical Center’s 2014-2015
fiscal plan accounts for these additional expenses while
preserving the goal of providing high quality and cost effective
health care, education, and research services.
Staffing: The Medical Center’s FY 2015 budget has been
benchmarked with comparable academic medical centers. Full-time
equivalents (FTEs) are planned at 7,495, an increase of 297 FTEs
from the current fiscal year budget of 7,198 FTEs. The budget
includes increased staffing for Centers of Excellence and
related patient care of 100 FTEs. Medical Center and
Transitional Care FTE growth of 44 is primarily to support the
bedside staffing ratios. The remainder of the growth is to
support facility expansion and program development.
Operating Plan: The rapidly changing health care environment
will require continuous examination of budget assumptions.
3
Management will monitor budget versus actual performance on a
monthly basis and, where appropriate, make changes to
operations. Also, management will continue to identify and
implement process improvement strategies that will allow for
operational streamlining and cost efficiencies.
The major strategic initiatives that impact next year’s fiscal
plan include:








Continuously improving quality to achieve recognition as a
top-decile provider of clinical care among academic health
centers.
The continuation of the collaborative effort between the
Medical Center and the School of Medicine faculty to
realize cost efficiencies on a volume adjusted basis in
preparation for future reimbursement reductions included in
the Affordable Care Act.
The continuation of efforts to better engage our employees
and enhance patient satisfaction.
Maintaining adequate working capital to foster growth in
capacity, technology, and innovation to meet the needs of
healthcare in Virginia.
Continue investing in the capital requirements of the
Medical Center with the priorities of maintaining the
current patient care infrastructure, opening the Battle
Building, and planning for the Emergency Department
Expansion and the Education Resource Center.
Maintain market-driven and performance-based salaries for
employees.
Continue to fund the Strategic Investment Pool to grow the
tri-mission of clinical care, education, and research.
Continue to develop Population Health in response to a
changing environment that emphasizes value, quality, and
patient engagement.
The major risk factors that impact the ability to accomplish the
fiscal plan include:



Changes in healthcare reform including State participation
and maintaining the timeline for Medicaid expansion and
sequestration.
Sustainable growth rate issue for physicians is not
corrected by Centers for Medicaid and Medicare Services
(CMS).
Maintaining and growing a superior workforce in an
environment where workforce shortages are projected.
4







Medicare payments at risk due to value-based purchasing,
electronic health record meaningful use, and hospital
readmissions.
Further cuts in Graduate Medical Education (GME), Indirect
Medical Education (IME) and facility fees beyond
sequestration.
Marketplace changes create a highly competitive
environment.
Centers of Excellence do not achieve market share and
volume goals.
Ability to adapt for continued shifts in healthcare
utilization trends from being inpatient centric to a
balanced mix of inpatient and outpatient services.
Outreach objectives are not achieved.
Changes in market dynamics from emerging Accountable Care
Organizations and Clinically Integrated Networks.
Capital Plan: Funds available to meet capital requirements are
derived from operating cash flows, funded depreciation reserves,
philanthropy, and interest income. The Medical Center faces
many challenges regarding capital funding as continued pressures
on the operating margin affect cash flow, while demand for
capital has increased significantly due to space requirements,
technological advances, and aging of existing equipment.
Subject to funds availability, the Medical Center management
recommends $107.4 million be authorized for capital
requirements, which includes $5.0 million for contingencies and
$12.3 million for the Strategic Investment Pool.
ACTION REQUIRED: Approval by the Medical Center Operating
Board, the Finance Committee, and by the Board of Visitors
2014-2015 OPERATING AND CAPITAL BUDGETS AND ANNUAL RENOVATION
AND INFRASTRUCTURE PLAN FOR THE UNIVERSITY OF VIRGINIA MEDICAL
CENTER
RESOLVED, the 2014-2015 Operating and Capital Budgets and
the Annual Renovation and Infrastructure Plan for the University
of Virginia Medical Center is approved as recommended by the
President, the Chief Operating Officer, and the Medical Center
Operating Board.
5
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
June 5, 2014
COMMITTEE:
Medical Center Operating Board
AGENDA ITEM:
IV. Fiscal Year 2014 Finance Report
ACTION REQUIRED:
None
BACKGROUND: The Medical Center prepares a periodic financial
report, including write-offs of bad debt and indigent care, and
reviews it with the Executive Vice President for Health Affairs
of the University before submitting the report to the Medical
Center Operating Board.
DISCUSSION: After nine months of operations in fiscal year
2014, the operating margin for all business units was 5.4%,
which was above the budget of 4.7%.
During the first nine months of the fiscal year, inpatient
admissions were 4.5% below budget and 1.8% below the prior year.
Average length of stay was 5.74 days, which was above the budget
of 5.45 days and above the prior year’s 5.68 day average length
of stay. The CMI was also above budget and above the prior
year. Outpatient visits were 1.8% below budget, but 3.5% above
the prior year. Clinic visits were adversely impacted by
several days of inclement weather in February and March.
Total operating revenue was $939.6 million for FY 2014
through March, which was 1.1% below budget but 5.7% higher than
the prior year. Total operating expenses were 1.8% below the
budget and 5.6% above FY 2013 expenses due to increases in
purchased services and medical supplies.
Total paid employees, including contracted employees, were
189 below budget:
FY 2013
FY 2014
2014 Budget
Employee FTEs
6,652
6,813
7,003
Salary, Wage and
Benefit Cost per
FTE
$76,199
$77,923
$78,611
Contract Labor FTEs
231
169
168
Total FTEs
6,883
6,982
7,171
6
OTHER FINANCIAL UPDATES
Well Virginia, UVA’s Medicare Fee For Service Accountable
Care Organization (ACO), will have no revenue for FY 2014. This
is as expected because CMS shared savings payments are made only
after the end of each calendar year. Although Well Virginia had
a FY 2014 expense budget of $1 million, expenses will be less
than $250,000 because we have decided not to proceed with
procurement of an IT system until the Director of Population
Health position is filled. The ACO is actively recruiting for
this position, as well as for an administrator. ACO operations
are active, the first patient mailing was sent in April, and
additional staff resources are being recruited for FY 2015.
The joint venture between Carilion Clinic, Riverside
Hospital, UVA, and Aetna to own and operate a Medicaid Managed
Care Organization (MajestaCare) is progressing and we anticipate
all agreements to effectuate this business will be signed by
June 30, 2014. Adding to the current MajestaCare membership,
Aetna will be transitioning approximately 37,000 Medicaid member
lives, previously acquired through their acquisition of Coventry
Health, into MajestaCare as part of this transaction. This
would expand UVA’s business to become a financer of health
services in which the organization would assume the assets and
liabilities associated with managing medical claims for a
portion of our Medicaid population. This venture will position
and prepare UVA as we transition into population health
management. All deal points have been discussed, and the
majority of issues have been resolved. Virginia’s Department of
Medical Services has agreed to the MajestaCare deal and
structure in principal, but has not yet provided final approval.
WRITE-OFF OF BAD DEBTS AND INDIGENT CARE
Indigent care charges totaling $223.5 million for the
period from July 1, 2013 through March 31, 2014, have been
written off. Recoveries during this period totaled $47.8
million.
Bad debt charges totaling $42.5 million have been written
off during the period from July 1, 2013 through March 31, 2014.
During this same period, $11.9 million was recovered through
suits, collection agencies, and Virginia refund set-off.
7
University of Virginia Medical Center
Income Statement
(Dollars in Millions)
Most Recent Three Fiscal Years
Description
Net patient revenue
Mar-12
Mar-13
Mar-14
Budget/Target
Mar-14
$819.4
$853.4
$905.7
$919.3
33.2
35.4
33.9
30.5
$852.6
$888.8
$939.6
$949.8
757.9
772.3
817.2
827.8
53.2
59.1
60.7
65.1
5.3
10.8
11.1
12.3
Total operating expenses
$816.4
$842.2
$889.0
$905.2
Operating income (loss)
$36.2
$46.6
$50.6
$44.7
Non-operating income (loss)
$5.9
$36.0
$38.6
Net income (loss)
$42.1
$82.6
$89.2
$54.7
Principal payment
$18.4
$21.1
$8.6
$8.6
Other revenue
Total operating revenue
Operating expenses
Depreciation
Interest expense
8
$10.0
University of Virginia Medical Center
Balance Sheet
(Dollars in Millions)
Most Recent Three Fiscal Years
Description
Mar-12
Mar-13
Mar-14
Assets
Operating cash and investments
$33.6
$118.1
$232.2
Patient accounts receivables
142.2
117.5
142.9
Property, plant and equipment
711.1
764.0
802.2
Depreciation reserve and other investments
178.9
224.4
178.2
Endowment Funds
409.4
456.5
502.0
Other assets
233.9
226.2
248.0
$1,709.1
$1,906.7
$2,105.5
Current portion long-term debt
$9.9
$13.6
$7.7
Accounts payable & other liab
98.7
73.2
107.4
315.4
417.6
Total Assets
Liabilities
Long-term debt
435.5
.
Accrued leave and other LT liab
Total Liabilities
Fund Balance
Total Liabilities & Fund Balance
9
129.0
117.0
168.8
$553.0
$621.4
$719.4
$1,156.1
$1,285.3
$1,386.1
$1,709.1
$1,906.7
$2,105.5
University of Virginia Medical Center
Financial Ratios
Most Recent Three Fiscal Years
Description
Mar-12
Mar-13
Mar-14
Budget/Target
Mar-14
Operating margin (%)
4.2%
5.2%
5.4%
4.7%
Total margin (%)
4.9%
8.9%
9.1%
5.7%
Current ratio (x)
1.6
2.7
3.3
2.4
138.9
178.5
224.5
190.0
Gross accounts receivable (days)
50.9
46.2
49.0
45.0
Annual debt service coverage (x)
4.2
4.8
8.2
5.2
29.7%
33.5%
33.0%
31.8%
7.2%
8.3%
8.1%
8.6%
Days cash on hand (days)
Debt-to-capitalization (%)
Capital expense (%)
University of Virginia Medical Center
Operating Statistics
Most Recent Three Fiscal Years
Description
Acute Admissions
Patient days
Mar-12
Mar-14
21,709
21,322
22,331
128,227
127,137
128,388
128,393
7,904
7,657
7,057
7,637
5.84
5.68
5.74
5.45
567,986
567,397
587,276
598,041
46,196
45,920
43,638
46,294
2.11
2.04
2.10
2.08
6,705
6,883
6,982
7,171
Average length of stay
ER visits
Mar-14
21,503
SS/PP Patients
Clinic visits
Mar-13
Budget/Target
Medicare case mix index
FTE's (including contract labor)
10
University of Virginia Medical Center
SUMMARY OF OPERATING STATISTICS AND FINANCIAL PERFORMANCE MEASURES
Fiscal Year to Date with Comparative Figures for Prior Year to Date - March FY14
OPERATING STATISTICAL MEASURES - March FY14
ADMISSIONS and CASE MIX - Year to Date
Actual
ADMISSIONS:
Adult
Pediatrics
Psychiatric
Transitional Care
Subtotal Acute
Budget
OTHER INSTITUTIONAL MEASURES - Year to Date
% Variance
Prior Year
18,126
2,123
898
175
21,322
18,933
2,293
882
223
22,331
(4.3%)
(7.4%)
1.8%
(21.5%)
(4.5%)
18,518
2,159
859
173
21,709
7,057
7,637
(7.6%)
7,657
Total Admissions
28,379
29,968
(5.3%)
29,366
Adjusted Admissions
41,383
41,590
(0.5%)
40,389
Short Stay/Post Procedure
CASE MIX INDEX:
All Acute Inpatients
Medicare Inpatients
1.98
2.10
1.95
2.08
1.5%
1.0%
1.90
2.04
Actual
Budget
% Variance
Prior Year
ACUTE INPATIENTS:
Inpatient Days
Average Length of Stay
Average Daily Census
Births
128,388
5.74
469
1,289
128,393
5.45
468
1,242
(0.0%)
(5.3%)
0.2%
3.8%
127,137
5.68
464
1,210
OUTPATIENTS:
Clinic Visits
Average Daily Visits
Emergency Room Visits
587,276
3,329
43,638
598,041
3,400
46,294
(1.8%)
(2.1%)
(5.7%)
567,397
3,271
45,920
14,741
7,441
22,182
15,107
7,890
22,997
(2.4%)
(5.7%)
(3.5%)
14,579
7,471
22,050
SURGICAL CASES
Main Operating Room (IP and OP)
UVA Outpatient Surgery Center
Total
11
OPERATING FINANCIAL MEASURES - March FY14
REVENUES and EXPENSES - Year to Date
($s in thousands)
NET REVENUES:
Net Patient Service Revenue
Other Operating Revenue
Total
EXPENSES:
Salaries, Wages & Contract Labor
Supplies
Contracts & Purchased Services
Depreciation
Interest Expense
Total
Operating Income
Operating Margin %
Non-Operating Revenue
Net Income
Actual
$
$
$
$
$
Budget
OTHER INSTITUTIONAL MEASURES - Year to Date
% Variance
Prior Year
905,734
33,904
939,638 $
919,338
30,519
949,857
(1.5%)
11.1%
(1.1%) $
853,429
35,374
888,803
408,192
209,016
200,011
60,676
11,091
888,986
50,652
5.4%
38,616
3.6%
(9.2%)
6.1%
6.7%
9.9%
1.8% $
13.3% $
$
423,329
191,406
213,065
65,053
12,304
905,157
44,700
4.7%
10,020
285.4%
$
397,259
199,617
175,398
59,134
10,788
842,196
46,607
5.2%
35,958
89,268 $
54,720
63.1%
$
82,565
$
$
$
($s in thousands)
NET REVENUE BY PAYOR:
Medicare
Medicaid
Commercial Insurance
Anthem
Aetna
Other
Total Paying Patient Revenue
OTHER:
Collection % of Gross Billings
Days of Revenue in Receivables (Gross)
Cost per CMI Adjusted Admission
Total F.T.E.'s (including Contract Labor)
F.T.E.'s Per CMI Adjusted Admission
Actual
$
$
$
Budget
% Variance
281,547 $
193,179
143,693
183,699
60,724
42,893
905,734 $
279,612
175,429
170,896
185,023
59,778
48,601
919,338
0.7% $
10.1%
(15.9%)
(0.7%)
1.6%
(11.7%)
(1.5%) $
30.90%
49.0
10,875 $
6,982
23.40
30.92%
45.0
11,214
7,171
24.34
(0.1%)
(8.9%)
3.0% $
2.6%
3.9%
Prior Year
274,829
170,378
145,133
159,798
57,498
45,794
853,429
32.73%
46.2
11,011
6,883
24.66
University of Virginia Medical Center
SUMMARY OF OPERATING STATISTICS AND FINANCIAL PERFORMANCE MEASURES
Fiscal Year to Date with Comparative Figures for Prior Year to Date - March 31, 2013
Assumptions - Operating Statistical Measures
Admissions and Case Mix Assumptions
Admissions include all admissions except normal newborns
Pediatric cases are those discharged from 7 West, 7 Central, NICU, PICU and KCRC
Psychiatric cases are those discharged from 5 East
TCH cases are those discharged from the TCH, excluding any Medicare interrupted stays
All other cases are reported as Adult
Short Stay Admissions include both short stay and post procedure patients
Case Mix Index for All Acute Inpatients is All Payor Case Mix Index from Stat Report
Other Institutional Measures Assumptions
Patient Days, ALOS and ADC figures include all patients except normal newborns
Surgical Cases are the number of patients/cases, regardless of the number of procedures performed on that patient
12
Assumptions - Operating Financial Measures
Revenues and Expenses Assumptions:
Medicaid out of state is included in Medicaid
Medicaid HMOs are included in Medicaid
Physician portion of DSH is included in Other
Non-recurring revenue is included
Other Institutional Measures Assumptions
Collection % of Gross Billings includes appropriations
Days of Revenue in Receivables (Gross) is the BOV definition
Cost per CMI Adjusted Discharge uses All Payor CMI to adjust
MEDICAL CENTER
ACCOUNTS COMMITTEE REPORT
(Includes All Business Units)
(Dollars in Thousands)
Year to Date
March
2013-14
INDIGENT CARE (IC)
Net Charge Write-Off
196,263
Percentage of Net Write-Offs to Revenue
6.70%
Annual Activity
2012-13
2011-12
234,088
207,515
6.66%
6.46%
Total Reimbursable Indigent Care Cost
69,497
82,890
73,481
State and Federal Funding
66,661
79,509
70,483
Total Indigent Care Cost Funding As a Percent
of Total Indigent Care Cost
96%
Unfunded Indigent Cost
2,835.46
96%
96%
3,381.93
2,998.03
Annual Activity
March
2013-14
BAD DEBT
Net Charge Write-Offs
34,280
Percentage of Net Write-Offs to Revenue
1.17%
2012-13
26,891
0.77%
2011-12
30,942
0.96%
Note:
Provisions for bad debt write-offs and indigent care write-offs are recorded for financial statement purposes based on the
overall collectibility of the patient accounts receivable. These provisions differ from the actual write-offs of bad debts
and indigent care which occur at the time an individual account is written off.
13
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
June 5, 2014
COMMITTEE:
Medical Center Operating Board
AGENDA ITEM:
V. Buchanan Endowment Impact Report
ACTION REQUIRED:
None
BACKGROUND: William D. Steers, M.D. received his medical degree
in 1980 from the Medical College of Ohio after receiving a
degree in Chemical Engineering from Cornell University.
Following a residency at the University of Texas and M.D.
Anderson Hospital, Dr. Steers completed a fellowship in
Neurobiology and Pharmacology at the University of Pittsburgh.
He has been a faculty member at the University of Virginia since
1988, became Chair of the Department of Urology in 1995, and was
awarded the Hovey Dabney Professorship in 2003. Dr. Steers
serves as Editor of the Journal of Urology, President of the
American Board of Urology, and a Director on the American Board
of Obstetrics and Gynecology. His honors include annual
listings in America’s Top Doctors and Best Doctors in America.
Mr. Ward Buchanan, a 1914 graduate of the University’s Law
School, left a $52.6 million bequest to create an unrestricted
endowment fund for the University of Virginia Medical Center.
Interest earnings from the Ward Buchanan Fund are being used to
provide seed funding of unique, “clinically differentiating”
programs at the Medical Center. The annual interest amounts to
approximately $2.3 million and, with matching funds, up to $5
million will be available. Funding will be provided for a
maximum of three years for each new clinical program.
DISCUSSION: As in past years, a request was sent to all School
of Medicine clinical department chairs and clinical staff
members to submit Letters of Intent describing proposed
clinically differentiating programs.
In order to receive funding, the programs must demonstrate
that an 11% return on investment over a three-year period and
7% net operating margin in the third and final year of funding
could be achieved. Programs must be clinically differentiating
and set the University of Virginia Medical Center apart from
other academic medical centers and hospitals in the area. In
addition, up to 25% of Buchanan funding may be used for Clinical
14
Trials Research that is part of a differentiating clinical
program.
Using these criteria, the Buchanan Endowment Programs
Committee recommended that one program receive funding this
year. The Vice President and Chief Executive Officer of the
Medical Center and the Dean of the Medical School made the final
decision and concurred with the Committee’s recommendations.
The program is:
Cardiovascular Genetics Program: When most people consider
cardiovascular disease, they think about heart attack, the
leading cause of death in the United States. Most heart attacks
result from coronary artery disease, which can be prevented
through lifestyle changes such as diet, exercise, and smoking
cessation. In contrast to coronary artery disease, inherited
cardiovascular diseases are caused by a single gene running in
the family. Inherited cardiovascular diseases affect patients
of all ages and cause serious complications, including heart
failure, life-threatening arrhythmias, aneurysms, and sudden
death. The first signs and symptoms of most inherited
cardiovascular diseases occur after a patient has reached an
advanced stage of their disorder. Unfortunately, the first sign
of disease may be sudden death. Since these diseases do not
respond to traditional lifestyle improvements, management by an
experienced cardiologist and/or surgeon is required to reduce
morbidity and mortality. Intervention is most effective when
the diagnosis is made in the earliest stages of disease.
Even after a patient with an inherited cardiovascular
disease has received a timely diagnosis and optimal medical
care, the impact of the disease continues for his or her family.
Each first-degree relative of that patient often has a 50% risk
of developing the same disease. Once one person in a family is
diagnosed, all of his or her parents, siblings, and children are
at risk for serious complications, including sudden death. As
more members of a family are diagnosed, risk of the disease
extends to aunts, uncles, cousins, nieces, nephews, and
grandchildren.
While treating patients who already have the complications
of an inherited cardiovascular disease, the Medical Center has
an opportunity to identify at-risk family members, help patients
encourage their family members to undergo screening, and become
the health system where the family members receive their care.
The Medical Center now has the opportunity to provide: 1) a
straightforward and systematic approach to offer genetic testing
to patients with inherited cardiovascular diseases; and 2) a
dedicated effort to recruit, clinically screen, and treat the
15
family members of patients with inherited cardiovascular
diseases before serious complications occur.
The goal of the program is to offer genetic counseling and
genetic testing to every UVA Health System patient suspected to
have an inherited cardiovascular disease and to facilitate
genetic testing and/or clinical screening for their at-risk
relatives.
16
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
June 5, 2014
COMMITTEE:
Medical Center Operating Board
AGENDA ITEM:
VII.A.
ACTION REQUIRED:
None
Vice President’s Remarks
BACKGROUND: R. Edward Howell has been the Vice President and
Chief Executive Officer of the University of Virginia Medical
Center since February 2002. Prior to joining the University of
Virginia, he served for eight years as Director and CEO of the
University of Iowa Hospitals and Clinics. He has over 30 years
of experience in administration and leadership of academic
medical centers.
DISCUSSION: The Vice President and Chief Executive Officer of
the Medical Center will inform the MCOB of recent events that do
not require formal action.
17
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
June 5, 2014
COMMITTEE:
Medical Center Operating Board
AGENDA ITEM:
VII.B.
ACTION REQUIRED:
None
Dean, School of Medicine’s Remarks
BACKGROUND: Nancy E. Dunlap, M.D., is the Dean of the School of
Medicine. Prior to joining the University of Virginia, she
served as physician-in-residence with the National Governors
Association Center for Best Practices in Washington, D.C.
Previously, she held numerous appointments with increasing
responsibilities at the University of Alabama at Birmingham
(UAB). Dr. Dunlap received a Bachelor of Arts degree from
Wellesley College, a medical degree from Duke University, a
doctoral degree in microbiology from UAB, and an MBA degree with
distinction from the University of Michigan at Ann Arbor.
DISCUSSION: The Dean of the School of Medicine will inform the
MCOB of recent events that do not require formal action.
18
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
June 5, 2014
COMMITTEE:
Medical Center Operating Board
AGENDA ITEM:
VII.C.
ACTION REQUIRED:
None
Operations Report
BACKGROUND: The Medical Center provides a report of significant
operations of the Medical Center occurring since the last MCOB
meeting.
Robert H. (Bo) Cofield has served as the Medical Center’s
Associate Vice President for Hospital and Clinics Operations
since February 2010. In this position, he is responsible for
the effective daily operations of the Medical Center’s inpatient
and outpatient clinical services. Before coming to the
University of Virginia, he served for 10 years in a variety of
leadership roles at the University of Alabama at Birmingham
Health System.
DISCUSSION:
Clinical Operations
Ambulatory Operations
The UVA Care Connection program continues to increase the
number of appointments scheduled each month. During FY 2014,
the program has averaged 1,900 scheduled appointments a month.
UVA employees and their families made up over 36% of these
appointments. HealthGrades accounted for 5.7%, while inpatient
discharge appointments continue to grow with over 800 scheduled
since July 2013. Due to volume increases and efforts to offer
program enhancements, a licensed practical nurse was hired to
help with clinical questions affecting scheduling.
On April 1, the Health System transitioned from the Press
Ganey Medical Practice (clinics) survey to the Clinician and
Group Consumer Assessment of Healthcare Providers and Systems
(CG-CAHPS) survey. The survey is a standardized tool to measure
patient perceptions of care and produce comparable data for
public reporting.
19
Patient Care Services
UVA Medical Center has partnered with Broad Axe Care
Coordination, LLC to reduce the number of avoidable patient
readmissions to the Medical Center. Patients recently
discharged from UVA with heart failure, pneumonia, chronic
obstructive pulmonary disease (COPD), or after suffering a heart
attack can receive 60 days of home monitoring through the Care
Coordination Centers (C3). Results among the initial group of
patients enrolled in C3 at UVA are extremely promising. Since
launching the program in September 2013, 10.4% of patients
enrolled in C3 were readmitted within 30 days, compared with a
30-day readmission rate benchmark of 21.4% among similar groups
of patients at UVA in the three-year period (FY 2010-2012) used
by CMS to assign readmission financial penalties.
Children’s Hospital clinics are completing preparations for
the move to the Battle Building in July of 2014. KCRC, clinics
located on the fourth floor of the Primary Care Center,
pediatric urology, pediatric allergy, pediatric otolaryngology,
and portions of neurology will be relocating. In addition, high
risk obstetrics and the fetal care clinic will be making the
move to the Battle Building. Work to create a centralized
scheduling system is in progress, with three clinics planned to
go live before the July move.
Inpatient children’s services have experienced an increase
in volume over the past several months since expectations for
managing transfer requests have been clarified. The eight bed
NICU expansion was completed in December 2013, and we are moving
forward with plans to renovate the rest of the seventh and
eighths floors.
The Children’s Hospital and women’s areas have focused on
quality with improvements in Catheter-Associated Urinary Tract
Infection (CAUTI), Central Line Associated Bloodstream
Infections (CLABSI), hand hygiene, exclusive breast feeding,
asthma core measures, and elimination of early elective
deliveries. We are on track to achieve Baby Friendly status in
the fall of 2014.
The multi-disciplinary Brain Injury and Sports Concussion
Clinic opened in January 2014. This clinic brings together
Adult Neurology, Pediatric Neurology, Neuropsychology, Physical
Medicine and Rehabilitation, Physical Therapy, and Occupational
Therapy to provide comprehensive assessment and treatment to
patients with all levels of injury. Nursing staff and faculty
have participated in community awareness events around the city
to promote Brain Injury and Sports Concussion Awareness, as well
20
as Stroke Risk Awareness. The former event resulted in more
than 300 free bicycle helmets being distributed.
Electromyography (EMG) services have expanded to Zion
Crossroads and the Hand Center. The National Association of
Epilepsy Centers has recognized the Comprehensive Epilepsy
Program as a Level 4 Center, establishing UVA as a regional and
national referral facility for intractable epilepsy
patients. This rating denotes UVA’s ability to provide more
complex forms of intensive neurodiagnostic monitoring, as well
as more extensive medical, neuropsychological, and psychosocial
treatment.
Center of Excellence outpatient volumes have continued to
be above budget for the current fiscal year. We continue to
invest in additional faculty infrastructure to continue this
growth trajectory.
The latest outcome survival data from the Scientific
Registry for Transplant Recipients reported the following one
year survival rates for UVA transplant program:
Liver Transplant-97%
Kidney Transplant-97%
Lung Transplant-95%
Heart Transplant-86%
Clinical Ancillary Services
Medical Laboratories
The Medical Laboratories are implementing document
management, control, and distribution software to facilitate online tracking and publishing of medical laboratory policies and
procedures. This initiative will support the quality control
program required by the College of American Pathologists.
Radiology and Medical Imaging
The Breast Care Mammography Center will be the first in the
state of Virginia to offer patients contrast enhanced spectral
mammography (CESM), a new tool that aids physicians in the
diagnosis of breast cancer. Performed as an adjunct to a
suspicious mammogram, this technology uses contrast and routine
mammography projections to highlight unusual blood flow patterns
to help identify the presence of cancer. It can also be used to
follow up suspicious findings when a patient is unable to
undergo an MRI scan.
21
Patients now have the ability to view their imaging studies
online through a secure portal which can be accessed using a
smart phone, internet enabled tablet, or personal computer. The
images can be printed, saved, or burned to a CD, and can be sent
to or shared with the patient’s care provider. Previous exams
are also available online.
Pharmacy Services
The Hope Augusta Retail Pharmacy opened on January 27.
Two pilot programs designed to improve safety and quality
were launched in February:


Pharmacy technical staff have been deployed on nursing
units to reduce waste, improve turnaround time for
medication orders, and improve overall nurse satisfaction
with pharmacy services.
A new medication delivery system is being used in the
Operating Room. The system uses pre-drawn medication
syringes housed within an automated cabinet to promote
accountability for controlled substances.
Community Outreach
The Commonwealth of Virginia Campaign (CVC) held its
closing celebration for Health System volunteers in February.
Health System giving again exceeded the previous year. In the
last 10 years, UVA has pledged $8.8 million, with the Medical
Center and School of Medicine representing $4.6 million of that
total.
Dr. Brandy Patterson spoke to the African-American Alliance
of Employees at General Electric in February, addressing early
risk identification for that population.
Brain trauma therapists held an awareness event on the
downtown mall in March, meeting with more than 150 people who
expressed interest in receiving information about falls and
bicycle safety.
UVA Children’s Hospital supported the Kid’s in the Kitchen
event hosted by the Junior League of Charlottesville at the Boys
and Girls Club.
22
Construction is underway for the Children’s Hospital
display as part of Main Street Charlottesville at the Virginia
Discovery Museum. The display will open on June 1.
Environment of Care
Arts Committee
The University of Virginia Health System Arts Committee
sponsored an exhibition of paintings by Richard W. Young
entitled “Glimpses” from January 10 - March 7, 2014 in the
University Hospital lobby. An exhibition of paintings entitled
“Blue Ridge Diary” by Gray Dodson was on display from March 7 –
May 2, 2014.
Hospital Auxiliary
In March the UVA Hospital Auxiliary sponsored a Daffodil
Day sale, with proceeds from the sale funding gifts of daffodils
to UVA inpatients. Other spring events included a sale at
Flourish, at the Emily Couric Clinical Cancer Center, and a
“Books Are Fun” sale. Sale proceeds support and make possible
the mission of the UVA Hospital Auxiliary to serve the UVA
Health System, its patients, and their families.
Facilities
The Battle Building at UVA Children’s Hospital received an
Honor Award from the Central Virginia Chapter of the American
Institute of Architects. The award was presented at a ceremony
in Richmond in April.
Nutrition Services
Angie Hasemann, Registered Dietician, and Susan Cluett,
Program Director for the Children’s Fitness Clinic, presented
“Frontline Strategies in Pediatric Obesity” at the UVA Birdsong
Pediatric Conference in March.
March was National Nutrition Month and events held during
the month offered employees an opportunity to talk with a
dietitian and sample nutritious and delicious special offerings
with a Mediterranean flavor.
Sustainability
The Medical Center’s Sustainability Workgroup sponsored an
event in March to provide information on water conservation,
23
sustainability, and storm water pollution prevention in
conjunction with World Water Day. Unused office supplies were
also collected for the Reusable Office Supply Exchange (ROSE)
program.
Volunteer Services
In 2013, 1,298 volunteers provided 81,172 volunteer service
hours at the UVA Health System. April 7–11 was National
Volunteer Week. Special events during that week included a
“Build a Bear” activity for pediatric patients, and staff and
volunteers creating floral arrangements which were delivered to
patients at University Hospital.
Medical student volunteers in the Golden Moments program
step out of their normal roles to volunteer their time with
patients in the outpatient dialysis unit. This program has been
integrated into the School of Medicine curriculum and students
involved in the program will volunteer as part of a “Social
Issues in Medicine” course for first year medical students. The
goal is to eventually expand the program to various intensive
care units at the Medical Center.
A pilot program to create activity blankets, funded by the
Venture Awards Committee of the Hospital Auxiliary, enabled
volunteers to take yellow blankets, used to indicate a
heightened risk of falling and modify them for patients with
brain injury, delirium, or dementia, providing them with a
distraction and keeping them occupied and safe from harmful
activities, such as pulling on cords or medical equipment.
Pockets, holding objects such as a string of beads, were added
to the blankets, as were eyelets and shoelaces, large buttons,
Velcro, snaps, and textured fabric. Volunteers who assisted
with the project included members of the Charlottesville Chapter
of the American Sewing Guild.
In June, Children’s Hospital volunteers assisted KCRC
therapy staff with Therapy Adventure Camp 2014, an eight day
therapeutic day camp for children with special needs. Daily
activities included indoor and outdoor play and exercise
sessions, with one-on-one instruction and guidance during games
and activities.
Information and Technology Services
Health System Technology Services
A number of new information system implementations are
underway. Taleo, a new electronic recruiting system, will be
24
operational in the fall, as will Kronos, our new time and
attendance, workforce productivity, and clinician scheduling
system. The Epic electronic medical record system will be
upgraded to the latest version in June, which will provide added
functionality for population health management and quality
reporting.
The Medical Center is working with the University to
replace and upgrade all the telephones on Grounds. The
infrastructure is currently being installed, and the replacement
of phones in University buildings will begin in June, with the
Medical Center to follow in September. The entire project is
expected to be completed in December 2015.
The deadline for conversion to ICD-10 coding has been
extended until October 1, 2015. Our ICD-10 project will
continue, but at lower intensity.
Health Information Services
Health Information Services (HIS) and the Health
Information Management committee are implementing a medical
record and document archiving strategy in compliance with state
policies. This will result in reduced storage of older paper
records. HIS is also managing a project to improve the adoption
and use of the MyChart patient access to the electronic medical
record.
Management Engineering
Management Engineering has established a relationship with
the School of Systems Engineering. The two entities are jointly
hiring a faculty position to specialize in healthcare management
engineering.
Clinical Engineering
Clinical Engineering is leading the provisioning of
equipment for the opening of the Battle Building, and also is
the co-sponsor of a house wide project to replace critical care
monitors, due to be completed in 2015.
Human Resources
Organizational Development
The annual Employee Engagement Survey will be administered
from May 21 – June 4. The survey consists of 20 questions related
25
to the 12 elements of engagement (Q12), effective communication,
trust, collaboration, and accountability. Results are expected in
late August.
The Uteam Leadership Academy is conducting a new series of
classes for nurse leaders entitled “Best Practices II (BPII)”,
with a focus on employee engagement. This series focuses on
creating transformational leaders; participants address topics,
such as emotional intelligence, learning agility, motivating and
engaging others, communication and listening, networking and
negotiation, and resiliency. The series incorporates a high
level of individual coaching with the participant’s manager and
supervisor. Our research shows that 100% of the participants
feel that coaching helped them reach their goals. In addition,
when compared to a control group who received little coaching,
they reported that they have successfully used the tools and
techniques taught in the class.
A quarterly Uteam Leadership Forum was held on January 29,
with a focus on generational diversity. Over 300 Health System
leaders attended. In addition, in February the Uteam Leadership
Academy sponsored a two day Health System educational event,
“Creating our Accountable Care Organization”. On April 17 the
Leadership Academy sponsored another quarterly forum focused on
the “Be Safe” initiative.
Recognition and Rewards
Uteam Members of the Month
The Uteam Members of the Month program recognizes employees
for their outstanding service to the Medical Center.
Nominations are based on the following criteria:





Demonstrates a caring manner and a strong customer focus
Works well with others
Makes the department a better place to work
Serves as a role model for others
Demonstrates a commitment to patient safety/patientcentered care
Recent Uteam Member of the Month are:


Mark Evans, Senior Heating, Ventilation, and Air
Conditioning (HVAC) Installation and Repair Technician,
Physical Plant Department
Anita Barber, Senior Data Analyst, Heart Center
26

Keundra Glover, Patient Care Assistant, Neuro Intensive
Care Unit
Leonard W. Sandridge Outstanding Contributor Award
The Leonard W. Sandridge Outstanding Contributor Award is
the highest honor for staff at the University. There are many
dedicated, hardworking employees across Grounds, and this is an
opportunity to recognize their excellence.
This year, senior leaders at the Medical Center reviewed
over 30 nominations of deserving employees. Five honorees will
be recognized in June as representatives of the UVA Health
System:





Raymond Cook, Specimen Technician, Specimen Support
Laura Grigsby, Patient Care Assistant, Emily Couric Cancer
Center
Sally Sargeant, RN Clinician II, Northridge Pediatrics
Amy Pennington, Therapy Assistant, TCH Physical Therapy
Becky Swartz, RN, Continuum Home Health
Recruitment
Experienced Nurse Campaign
The Human Resources Department kicked off a six month
Experienced Nurse Hiring Campaign on February 17, 2014.
Qualified registered nurses with a Bachelor of Science in
Nursing and two or more years’ of experience are eligible to
receive a sign on bonus of $5,000 and a $5,000 relocation
allowance (for moves over 50 miles). To date we have hired over
70 experienced registered nurses, exceeding our original goal of
50. Enhanced television, radio, and social media marketing have
contributed to the successful campaign. The campaign ends
August 17, 2014.
Power of One Nurse Referral Program
The Power of One nurse referral program was launched
simultaneously with the Experienced Nurse Hiring Campaign.
Employees of the School of Medicine, School of Nursing,
University Physicians Group, and Medical Center are eligible to
receive $2,500 for each referral of an experienced registered
nurse hired at the Medical Center. The referral bonus is paid
half up front and half after the nurse completes 30 months of
employment. Campaign materials have been distributed throughout
the Health System, and employees have made over 50 referrals.
27
Recognition and Awards
The national health care publication Becker’s Hospital
Review has selected the University of Virginia Medical Center as
one of its 2014 “100 Great Hospitals in America.” Becker’s
Hospital Review describes the hospitals chosen for the honor as
having “a rich history, strong credentials and a growing focus
on how to best care for patients in an era of reform.”
The Health System had 181 physicians included in the 2014
Best Doctors in America® List by Best Doctors, Inc. The list is
based on a survey of more than 45,000 physicians who have been
named to previous editions of Best Doctors in America®.
The School of Medicine Class of 2014 celebrated Match Day
on March 21. Of the 148 graduates, 25 will do some or all of
their training at University of Virginia Health System.
Graduates will continue their training at residencies in 25
states and Washington, D.C. One member of the class will defer
residency to do research.
UVA was one of 13 hospitals in Virginia – and the only
hospital in the area – to receive the March of Dimes/VHHA award
at the 2014 Virginia Patient Safety Summit for improving the
health of babies by stopping early elective deliveries.
The Medical Center is now one of 28 hospitals in the U.S.
participating in NeuroNEXT – the Network for Excellence in
Neuroscience Clinical Trials – investigating treatments for
brain and neurological conditions.
Supply Chain
The University of Kentucky has joined the UVA/VCU
Collaborative. It is now named the Commonwealth Collaborative
(C2). There are three major projects underway with all three
institutions participating: surgical packs, office supplies,
and purchased services assessment.
Patient Experience Office
A number of patient experience improvement efforts have
been implemented in the past year. These included daily leader
rounding, hourly nurse rounding, bedside shift change reporting,
greater enforcement of quiet time hours, better utilization of
white boards, and increased care partner involvement. We have
also increased the emphasis on our “Walk with Me” and elevator
etiquette programs. As a result of these interventions, over
28
the past three quarters, we have exceeded our goal of 70% 9s and
10s for the Overall Hospital Rating.
The Patient Experience Office was created in November of
2013, with the expressed intent to drive improvement in the
patient experience throughout the Health System. The office
includes the Patient Experience Officer and two staff members.
The Patient Experience Office has been charged with three
primary objectives. The first is to develop and deploy
improvement efforts targeting care processes. Utilizing the Be
Safe Real Time Problem Solving Methodology, a planning team has
reviewed the advanced analysis of our quantitative and
qualitative patient survey data and selected “staff
responsiveness to patient request and needs” as the key process
to focus on. Direct observations are underway to identify the
root causes and develop action plans to improve these areas.
The second objective is to define and develop common
behavior, vocabulary, and service standards expected of all team
members across the system. Currently, these exist in pockets,
but they need to be standardized and consistently demonstrated.
The final objective is to improve how we listen to patients
regarding their experiences. We are aligning our measurement
tools to match those developed by Centers for Medicare and
Medicaid Services (CMS). Where there are Consumer Assessment of
Healthcare Providers and Systems (CAHPS) surveys available, we
are using them as our primary survey tool. Inpatient units and
clinics have changed to the new CAHPS survey tool. As other
CAHPS tools are available (Emergency and Ambulatory are expected
in CY 2015), we will migrate them to the new survey tool as
well. We are also taking a number of steps to reduce the time
between the service experience and when patients receive the
survey. Pilot projects are underway to collect patient feedback
at the point of care in real time by using tablets.
The Patient Experience Office is also leading efforts to
create a Patient and Family Advisory Strategy which will better
infuse the voice of the patient and family into decisions made
at the Health System. There will be four levels of engagement:
a Patient and Family Advisory Forum, similar forums for key
service lines or Centers of Excellence, in-house committees, and
episodic or project related groups.
29
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
June 5, 2014
COMMITTEE:
Medical Center Operating Board
AGENDA ITEM:
VII.D.
ACTION REQUIRED:
None
Capital Projects
BACKGROUND: The Medical Center is constantly improving and
renovating its facilities. We provide a status report of these
capital projects at each MCOB meeting.
DISCUSSION: The current Medical Center capital projects report
is set forth in the following table:
30
The University of Virginia Medical Center
Capital Projects Report
June 2014
Scope
Budget
Funding Source
BOV
Approval
Date
Projected
Completion
Date
$29.4 M
Bonds & Other
Sept. 2013
2016
$20 M
Operating
Sept. 2013
2017
$117 M
Bonds and
Outside
Fundraising
N/A
2014
1. Planning
Education Resource Center
A contract was awarded to CO
Architects in December 2012 for
planning services for the
Education Resource Center
(ERC) to be located between the
Emily Couric Clinical Cancer
Center and the Lee Street
Parking Garage. The ERC will
house Ambulatory Imaging, an
Outpatient Pharmacy, GME
support and teaching functions,
meeting space and a shell floor
University Hospital 7th & 8th Floor
Master Planning
A contract was awarded to HKS
in January 2014 for design
services for the 7th and 8th floors.
The project goals are to upgrade
and expand capacity for Women
and Children’s in-patient
programs. The project is
currently in design.
2. Under Construction
Battle Building:
The Groundbreaking Ceremony
was held on June 9, 2011.
Interior fit-out work is on-going.
Equipment and furniture delivery
continued through May. Ribbon
cutting ceremony is scheduled
for June 14, 2014.
31
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
June 5, 2014
COMMITTEE:
Medical Center Operating Board
AGENDA ITEM:
VII.E.
ACTION REQUIRED:
None
Health System Development
BACKGROUND: Health System Development provides reports of
recent activity to the Medical Center Operating Board from time
to time.
DISCUSSION:
SIGNIFICANT GIFTS
January 1, 2014 – March 31, 2014
An anonymous donor documented a $4 million bequest to the
School of Medicine in support of Crohn’s Disease research, the
Medical Center/Department of Surgery, and UVA Children’s
Hospital.
Faculty in the UVA Department of Orthopaedics committed
$500,000 toward the McCue Educational Endowment and $500,000 for
the Wang Fund, both of which support resident education in
orthopaedic surgery.
Friends of the Health System established a $500,000 planned
gift to benefit the Carl and Inge Hull Scholarship Fund, with
funds to be split equally between nursing and medical students.
A School of Medicine alumnus created several charitable
remainder unitrusts valued at $400,000 for his family, the
remainder interest of which is designated for the Dean’s
discretionary use in the School of Medicine.
A UVA alumna and grateful parent pledged $300,000 to the
Battle Building at UVA Children’s Hospital.
An estate gift valued at $282,640 was received for
unrestricted use at the UVA Cancer Center.
A former House Staff member and his wife made a $200,000
deferred gift to benefit the Stan Nolan Chair in the Department
of Surgery.
32
A friend of the Health System committed $100,000 in honor
of Dr. Michael Thorner’s retirement in support of research in
the Division of Endocrinology.
A friend of the Health System made a $100,000 deferred gift
in support of travel, lodging and meal expenses for patients and
their families at the UVA Medical Center.
A Medical School alumnus committed $100,000 to establish a
lectureship in Neurology.
A $100,000 estate gift was received to endow the Louise
Gorgas Parrish Health Sciences Library Fund.
A School of Medicine alumnus verbally committed a $100,000
planned gift to the Gross Professorship in Otolaryngology.
Other gifts and pledges received include:








A $50,000 scholarship fund for oncology nursing students;
A $50,000 pledge to the Battle Building at UVA Children’s
Hospital;
A $50,000 pledge to the School of Medicine Class of 1989
fund;
A $36,000 gift in support of a resident exchange program in
the Division of Nephrology;
A $33,000 pledge for summer tuition scholarships for Clinical
Nurse Leader students;
A $25,000 pledge to the School of Nursing Annual Fund;
A $25,000 pledge for the Battle Building at UVA Children’s
Hospital; and
A $25,000 gift in support of Hepatology research in the
School of Medicine.
OTHER DEVELOPMENT INITIATIVES
On January 20, Health System Development staff hosted
several Health System donors and prospects in the President’s
box for the UVA men’s basketball game against the University of
North Carolina. President Teresa Sullivan, Executive Vice
President for Health Affairs Rick Shannon, School of Nursing
Dean Dorrie Fontaine, and Medical Center CEO Ed Howell also
attended the event.
A grateful patient hosted an Amyotrophic Lateral Sclerosis
(ALS) event in Richmond on January 12 to raise funds in support
of UVA’s ALS clinic. The event raised more than $12,000, and
additional fundraising efforts are ongoing.
33
The Children’s Hospital 2014 Main Event, “Enchanted”, took
place on February 1. Over 430 guests attended the gala, which
raised more than $319,000 in support of the Battle Building at
UVA Children’s Hospital. Now in its seventh year, the Main
Event has raised more than $1.1 million for the Children’s
Hospital since its inception. Several UVA Health Foundation
trustees, as well as a number of Health System, University, and
Board of Visitors leaders, provided sponsorships for the event.
On February 21-23, several members of the Health System
Development medical alumni fundraising team attended the UVA
Medical Alumni Association’s Annual Meeting at the Homestead.
Approximately 200 alumni and faculty attended the meeting, which
including Continuing Medical Education (CME) sessions, and
presentations by Rick Shannon, Executive Vice President for
Health Affairs, Nancy Dunlap, Dean of the School of Medicine,
and others on the current accomplishments and future goals of
the School of Medicine.
On February 26, Health System Development staff facilitated
a meeting with Altria leadership and UVA Executive Vice
President and Chief Operating Officer Pat Hogan to discuss the
University’s strategic focus and to continue to explore Altria’s
interest in developing a more comprehensive partnership with the
University encompassing a variety of interests and initiatives
across Grounds.
The School of Nursing hosted a reception for at the annual
Virginia Council of Nurse Practitioners (VCNP) conference on
March 6.
The 16th annual Hamiltons’ dinner was held on March 25th in
Charlottesville. The event featured the work of Dr. Todd Bauer
and Kim Kelly, PhD, and raised more than $10,000 in support of
pancreatic cancer research.
Development staff have made 1,422 face-to-face visits with
donors and prospects to date in FY 14.
34
DEVELOPMENT PROGRESS (THROUGH MARCH 30, 2014)*
New gifts*
New pledges
TOTAL NEW COMMITMENTS* (excludes
pledge payments on previously
booked pledges)
New expectancies
TOTAL NEW GIFTS, PLEDGES, and
EXPECTANCIES*
FY 14
(through
3/31/14)
$19,528,500
FY 13
(through
3/31/13)
$31,413,254
$2,180,921
$1,037,361
$21,709,421
$32,450,615
$9,202,000
$10,210,316
$30,911,421
$42,660,931
*Includes only private grants received through 12/31/13
35