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UNC MEDICAL BULLETIN
UNC also is working to commercialize more of its discoveries. “We’ve not had a big budget for commercialization,” said Etta Pisano, the School’s vice dean for academic affairs. But she’s hoping that will change under new University Chancellor Holden Thorp, who possesses a science background. “We can put experts in business together with experts in medical research to start new businesses that might create new ways to diagnose and treat disease, deliver therapeutics or improve medical technology.” Pisano also hopes to increase the amount of corporate-sponsored research. “I know there’s been a lot of bad press as if corporate relationships are inherently flawed because of conflicts of interests,” she continued. “Academic medical centers need partnerships with industry to facilitate the transference of knowledge to the community. We’re welcoming of these partnerships and need to build them to enhance our ability to influence what happens to our patients.”
improve efficiencies. “It’s the same ‘blocking and tackling’ any organization’s doing right now,” Park said. “Our biggest expense is payroll, so we’re looking at the number of full-time positions and whether or not to fill a position when someone leaves. But we need the same staff to provide the same care whether patients pay or don’t pay. So we can’t do wholesale reductions in workforce like a manufacturing organization can do.” Systems, processes, and supply chains also are under scrutiny. Yet even in an economic environment in which many organizations can’t borrow funding for operations or expansions, UNC is in good shape. “We can go to the market and get money—that’s the positive thing,” Park said, adding “And the state has been very generous to us.” But state funding will probably be less than in previous years given a statewide budget crunch, and what does come will likely be slow to arrive. That makes alumni support even more crucial, Runge added. “Many alums have a passion for a certain disease or condition. You can focus your donations on helping us in those areas, and that will go a long way to making a bright future for UNC.” Pisano agreed. “We need to work hard to stay where we are and not lose ground,” she said. “We’ve been building for the last 15 years and the organization is sound. We continue to provide outstanding teaching, clinical care and research. But we need to get to the next level. Alumni can help by assisting us in building our endowment and spreading the word about what we do.” Though myriad challenges face the School and UNC Health Care, its leader remains confident. “We are dedicated to providing care statewide, training health professionals and researching new discoveries,” Roper said. “It will take all of us—every health care provider, every elected official, every business leader and every citizen—to rise to the challenge before us. But we will meet the challenge.”
We’ve been building for the last 15
years and the organization is sound.
We continue to provide outstanding teaching, clinical care and research.
But we need to get to the next level.
Minding the bottom line It’s a sad fact that many patients can’t pay for the care they receive. The almost 15 percent of North Carolinians living below the poverty line and the rising numbers of people joining the ranks of the unemployed are likely to swell the amount of uncompensated care. And with the financial crisis expected to last at least 18 months longer, even more patients will be unable to pay their health care bills in full. The impact is already being felt. In 2007, uncompensated care for UNC Health Care was $203 million, or 15 percent of net patient revenue. That’s up from $111 million just six years prior. And then there are expected cuts in Medicaid reimbursements. “Cutting reimbursements at a time when people need them the most isn’t the most visionary approach,” Park said. “But we’re the hospital for all North Carolinians, and we will provide the uncompensated care. We have figure out how to get the additional funds to solve this statewide problem. Unfortunately, I don’t expect patient volumes to go down. In fact, I think we’ll continue to be as busy as we have ever been or busier, but the number of paying patients will be less.” That means looking at ways to cut costs and