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new financial mod el unveiled

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References Auden, W.H. (1947). Age of Anxiety. Stuart, G.W., Erkel, E.A. & Shull, L.H. (2010). Allocating resources in a data-driven college of nursing. Nursing Outlook, 58(4), 200-206.

or the past several years, the University has been engaged in a comprehensive review of revenue and expense allocation among the colleges, administration and support services. Representatives from every level of the organization, in conjunction with a management consulting firm, Huron Consulting Group, have been hard at work. In July 2012, the University will unveil a new Responsibility Centered Management (RCM) financial allocation model. Many universities around the country have employed RCM and even refined it in recent years. The theory behind the model is simple. Each revenue generating unit (college or department) will keep all of the funds it generates, including state appropriations, tuition, and grants. Each unit also will pay its costs to the University for the services it uses. This moves decision-making to the colleges in order to create a more transparent and rational budgeting process. RCM is, therefore, an incentive-based model. Instead of focusing on resources that have been historically shrinking—for example, state appropriations—the focus will now be on activities that generate a positive margin, thus fostering more entrepreneurial activities and initiatives. Central support services and their related costs will be allocated to the colleges based on several algorithms, such as number of employees, number of students, grant dollars spent, and occupied square footage of space. What does this mean for the College of Nursing? It means that we will continue to monitor student enrollment and program costs and extramural grant funding sources. We also will encourage new entrepreneurial ideas, while maintaining the efficiencies we have achieved in the last several years. In many ways it allows us to better control our own destiny, and we believe that we are well positioned for growing national prominence in the days ahead.

Spring | summer 2012

Lifelines

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Lifelines Spring/Summer 2012  
Lifelines Spring/Summer 2012  

MUSC College of Nursing magazine - Spring/Summer 2012

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