February 6, 2001

Page 1

The Chronicle

Spring sports supplement Freshmen phenoms Phillip King and Ansley Cargill lead the men's and women's tennis teams, which are each looking at championship seasons.

Duke Health System makes first cut City Council Northgate Mall’s Senior tries to cope Health Center scheduled to close by end of month with deficit ByAMBIKA KUMAR The Chronicle

Months after Duke University Health System officials warned they might cut unprofitable programs of Durham Regional Hospital, they have taken action. Effective March 1, the Senior Health Center located in

By WHITNEY BECKETT The Chronicle

Northgate Mall will be closed.

Durham Regional officials said the shutdown results primarily from a change in the way Medicare reimburses hospitals for this type of care. Prior to last August, Medicare would cover any losses at the facility, but this is no longer true. As a result, Durham Regional lost $164,000 on the clinic between July and November 2000. “We have kept the center open while we transitioned the patients that were being seen to community physicians,” said Don Brady, Durham Regional’s administrative director of

marketing.

He added that it would be impossible to guess what would have hap-

pened had Durham Regional been in better financial condition. Michael Israel, Vice Chancellor for Health Affairs and CEO of DUHS, said that both the reimbursement

TESSA LYONS/THE CHRONICLE

1.

THE SENIOR HEALTH CENTER in Durham’s Northgate Mall is slated to close March It may be just the first in a series of cutbacks of some of Durham Regional Hospital’s unprofitable programs.

changes and Durham Regional’s fi- offers the services of a full-time social nancial status contributed to the deci- worker and information about medsion to close the center. ical conditions that are more likely to “Durham Regional, over a period of affect seniors. The clinic does not offer time, is going to have to make opera- x-rays, lab work or any particular tional changes which allow it to gen- medical procedures. Still, officials erate the capital necessary to sustain said the closing of the clinic will be a itself,” Israel said. “However, what re- loss to the 600 patients it does serve, ally pushed [usj in this direction was the major change in reimbursement.” The clinic, set up in 1996, serves an average of eight patients per day. It

“It’s a disappointment,” said Lynne

Chamblee, information referral coor-

dinator for the Council for Senior CitSee SENIOR CENTER on page 6 �

While reviewing the city’s financial situation in a recent meeting, the Durham City Council discovered that this year’s Durham budget projects a $lO million deficit. According to council members, the group’s first priority now is finding the reasons for the deficit and then correcting them. Although a $lO million deficit seems large, council members stress that the situation is not as extreme as it seems, given the city’s $237 million budget. “It’s not a trouble; it’s a projection—the same kind we deal with every year,” Mayor Nick Tennyson said. “It’s a problem, but it’s not an unpredicted problem or one out of our ability to deal with.” No one yet knows exactly why the city is suffering from such a large deficit, but council members suggest that the water and sewer operations, employee salaries and low taxation rates are at the root of the problem. “We have to have answers,” City Council member Brenda Burnette said. “We cannot make any long-term plans to fix the situation until we know why it happened.” See DEFICIT on page 7 �

Duke buys tobacco warehouse, plans for new arts space By JAIME LEVY The Chronicle

Years of discussions culminated late last week in the University’s purchase of a tobacco warehouse from Liggett Group Inc., Executive Vice President Tallman Trask announced Monday. The building, currently used by Liggett to print cigarette cartons, will likely be used by Duke for an arts complex and for office space. Duke and Liggett closed the deal late Thursday, making the warehouse at 114 S. Buchanan Blvd. the latest addition to Duke’s campus. The $2 million property includes about 200,000 square feet of building space and about eight acres of the surrounding land. “This really completes the campus,” Trask said. “It’s the only piece of land we have not owned that’s really in the campus’ boundary.” The terms of the purchase allow Liggett to lease the center section of the warehouse for up to 15 years, but Trask said there would still be plenty of room for renovation at each end of the two-story building. The west end—about 50,000 square feet—should become available for renovations within the next six to 12 months. Liggett Group Inc. President and CEO Ronald Bernstein said the option to remain in the building made the difference in negotiations. “[We were willing to make the deal because] they were willing to let us keep the printing operation,” Bernstein said. “It’s a cumbersome type of move. This allows us to continue to do the printing we need to do.” Members of Duke’s arts community—who have long been asking administrators for more space—are particularly pleased with the acquisition, which they say could help push their programs forward. See

Schools use

TESSALYONS/THE CHRONICLE

THIS TOBACCO WAREHOUSE, now used by Liggett Group Inc. to manufacture cigarette cartons, will soon house studio space and more forDuke’s arts programs.

WAREHOUSE on page 7 �

technology

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help

alumni, page

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