university of virginia board of visitors meeting of the …16... · fund balance $1,433.7 $1,585.8...

UNIVERSITY OF VIRGINIA

BOARD OF VISITORS

MEETING OF THE

MEDICAL CENTER

OPERATING BOARD

FOR THE UNIVERSITY OF

VIRGINIA MEDICAL CENTER

SEPTEMBER 15, 2016


MEDICAL CENTER OPERATING BOARD

September 15, 2016

9:00 a.m. – 1:00 p.m.

Auditorium of the Albert & Shirley Small

Special Collections Library, Harrison Institute

Committee Members:

L.D. Britt, M.D., Chair James V. Reyes

Frank M. Conner III Frank E. Genovese, Advisor

William H. Goodwin Jr. Nina J. Solenski, M.D.,

Tammy S. Murphy Advisor

James B. Murray, Jr. A. Bobby Chhabra, M.D.,

Faculty Consulting Member

Public Members:

Hunter E. Craig Constance R. Kincheloe

Victoria D. Harker Babur B. Lateef, M.D.

Michael M.E. Johns, M.D.

Ex Officio Members:

Teresa A. Sullivan Richard P. Shannon, M.D.

Dorrie K. Fontaine Pamela M. Sutton-Wallace

Patrick D. Hogan Scott A. Syverud, M.D.

Thomas C. Katsouleas David S. Wilkes, M.D.

AGENDA

PAGE

I. OPENING COMMENTS FROM THE CHAIR (Dr. Britt)

Welcome to New Members

1

II. REMARKS FROM THE EXECUTIVE VICE PRESIDENT FOR HEALTH

AFFAIRS (Dr. Shannon)

A. Health System Dashboard

B. U.S. News and World Report Ratings

2

III.

HEALTH SYSTEM FINANCE REPORT (Dr. Shannon to

introduce Mr. James B. Murray Jr. and Mr. Larry L.

Fitzgerald; Messrs. Murray and Fitzgerald to report)

Fiscal Year 2016 Year-End Report and Fiscal

Year 2017 Year To Date Report

3

IV. SCHOOL OF MEDICINE RESEARCH: RECENT SUCCESSES (Dr.

Shannon to introduce Dr. David S. Wilkes, Dr.

William Jeffrey Elias, and Dr. Sean R. Moore. Dr.

Wilkes, Dr. Elias, and Dr. Moore to report)

A. Staying Focused: Focused Ultrasound at U.Va.

B. Understanding and Reversing the Vicious

Infection- Undernutrition Cycle

11

V. MEDICAL CENTER CHIEF EXECUTIVE OFFICER REPORT

(Written Report)

13

VI. HEALTH SYSTEM DEVELOPMENT REPORT (Written Report) 18

VII. CLOSED 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:

– Strategic personnel, financial, investment, market,

service line, and resource considerations and

specifically long range financial plan and funds

flow; potential joint ventures or affiliations;

update on partnership strategy; innovative efforts

and improvement initiatives for patient care; other

marketing, clinical and research growth efforts

that impact the competitive position and support

the strategic initiatives of the Medical Center and

the Health System, including employee performance

and other proprietary metrics;

– Confidential and privileged 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 and contractual disputes;

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 2.2-3704 and 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.

1


BOARD OF VISITORS AGENDA ITEM SUMMARY

BOARD MEETING: September 15, 2016

COMMITTEE: Medical Center Operating Board

AGENDA ITEM: I. Opening Comments from the Chair

ACTION REQUIRED: None

BACKGROUND: L.D. Britt, M.D., is the Chair of the Medical

Center Operating Board (MCOB).

DISCUSSION: The Chair will inform the MCOB of recent events

that do not require formal action.

2





AGENDA ITEM: II. Remarks from the Executive Vice

President for Health Affairs


BACKGROUND: Richard P. Shannon, M.D., is the Executive Vice

President for Health Affairs for the University of Virginia.

Before joining the University, he served as the Frank Wister

Thomas Professor of Medicine at the University of Pennsylvania

Perelman School of Medicine, and as chairman of the Department

of Medicine of the University of Pennsylvania Health System. An

internist and cardiologist, Dr. Shannon is widely recognized for

his work on patient safety.

DISCUSSION: The Executive Vice President will inform the MCOB

of recent events that do not require formal action.

3





AGENDA ITEM: III. Health System Finance Report


BACKGROUND: The Medical Center prepares a periodic financial

report and reviews it with the Executive Vice President for

Health Affairs before submitting the report to the MCOB.

Larry L. Fitzgerald is the Health System’s Chief Financial

and Business Development Officer. 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.

FINANCIAL REPORT

School of Medicine – Academic, Clinical, Health Sciences Library

The School of Medicine generated operating income of

$14.5M, compared to a budgeted loss of $7.6M. This positive

variance is primarily attributable to a lag in strategic

spending of $13.9M, unbudgeted gift revenue of $8.8M, strong

patient care volumes, and higher funding for the increasing cost

of providing care to indigent and Medicaid patients. Higher

revenues were partially offset by significant increases in

faculty compensation, including an increase in the faculty

pension expense due to the implementation of the updated

mortality tables at the end of Fiscal Year 2015.

Results reflected year over year growth in patient care

volumes of 4.8%. Volumes were close to budget, despite several

unfilled clinical faculty positions, particularly in the medical

departments. Profits generated by strong clinical growth

allowed for an investment in both the academic and research

missions.

Operating income for Fiscal Year 2016 was $10.8M greater

than the prior year. This is primarily due to an increase in

Medical Center support, endowment distributions of $5.7M, and

gifts of $5M, offset by increases in labor and depreciation

expense.

4

Medical Center, All Business Units

The preliminary Fiscal Year 2016 operating results for

Medical Center business units was $77.0M, resulting in a 5.1%

operating margin. Operating income was 47.8% higher than budget

due to a steadily increasing case mix index finishing the year

at 2.10 (all payor), transplants exceeding budget by 42 (27.8%),

and increased outpatient pharmacy utilization. Volumes were

slightly below budget; however, this was offset by a much higher

Case Mix Index (CMI). Continued strong results from the

dialysis, imaging, and infusion centers also contributed to the

overall Medical Center operating margin. At the end of June,

cash reserves totaled 160 days.

Total paid employees for all business units, including

contracted employees, were 198 above budget. Contract labor is

primarily individuals employed by the School of Medicine and

contracted to the Medical Center. The Medical Center had 14

travelers.

FY 2015 FY 2016 2016 Budget

Employee FTEs 7,351 7,758 7,570 Salary, Wage and Benefit Cost/FTE $80,591 $82,852 $84,127 Contract Labor FTEs 211 198 187

Total FTEs 7,562 7,955 7,757

KEY FINANCIAL PROJECTS

The joint operating company (JOC) Novant Health UVA Health

System was formed effective January 1, 2016. We are focused on

the integration of JOC operations with U.Va. and Culpeper

Hospital. The initial efforts center on cancer and pediatric

services. We are also adding - through the appropriate U.Va.

Department Chairs - orthopedic, obstetrics, and cardiology

services at Culpeper. The JOC includes three hospitals as the

major operating units. The hospital contributed by U.Va.,

Culpeper Regional Hospital, is exceeding expectations and

budget, while the two hospitals contributed by Novant are

underperforming due to low volumes.

The consolidation occurring in the health insurance

business will impact U.Va. When Anthem completes the purchase

of CIGNA and Aetna completes the purchase of Humana, there will

be only two commercial health insurance carriers of any

5

significance in Central Virginia. We have provided input to the

Virginia Hospital and Healthcare Association (VHHA) in preparing

a response to the Department of Justice opposing the Anthem and

CIGNA merger on the basis that if it is allowed to proceed, it

will substantially reduce competition, increase premium costs,

and diminish the insurers’ willingness to be innovative partners

with providers and consumers in transforming care. It was

recently announced that the Department of Justice is challenging

both mergers.

The finance department is engaged in a number of activities

aimed at maintaining our payment level at slightly below cost

for Medicaid and indigent patients. We served on the VHHA

Assessment Policy Advisory Group. We are also working with the

Secretary of Health and Human Resources and the Department of

Medical Assistance Services on the 1115 waiver and Delivery

System Reform Initiative Payment (DSRIP), which is the

supplemental funding associated with the waiver.

6

Budget/Target

Description Jun-14 Jun-15 Jun-16 Jun-16

Net patient revenue $1,237.1 $1,373.4 $1,456.7 $1,430.7

Other revenue 49.2 44.8 52.4 44.3

Total operating revenue $1,286.3 $1,418.2 $1,509.1 $1,475.0

Operating expenses 1,115.4 1,231.9 1,317.2 1,300.9

Depreciation 83.3 91.0 94.4 100.0

Interest expense 14.7 20.4 20.5 22.0

Total operating expenses $1,213.4 $1,343.3 $1,432.1 $1,422.9

Operating income (loss) $72.9 $74.9 $77.0 $52.1

Principal payment $15.2 $16.5 $18.0 $18.0

University of Virginia Medical Center

Income Statement

(Dollars in Millions)

Excluding Culpeper Regional Hospital

Most Recent Three Fiscal Years

7

Description Jun-14 Jun-15 Jun-16

Assets

Operating cash and investments $278.8 $309.7 $134.7

Patient accounts receivables 151.8 159.1 170.6

Property, plant and equipment 820.5 853.3 916.2

Depreciation reserve and other investments 209.9 193.8 606.4

Endowment Funds 539.9 570.2 548.4

Other assets 228.7 312.1 269.4

Total Assets $2,229.6 $2,398.2 $2,645.7

Liabilities

Current portion long-term debt $19.2 $19.1 $18.7

Accounts payable & other liab 147.7 131.2 155.9

Long-term debt 466.8 447.5 777.5

Accrued leave and other LT liab 162.2 214.6 227.1

Total Liabilities $795.9 $812.4 $1,179.2

Fund Balance $1,433.7 $1,585.8 $1,466.5

Total Liabilities & Fund Balance $2,229.6 $2,398.2 $2,645.7

Balance Sheet

(Dollars in Millions)




8

Budget/Target


Operating margin (%) 5.7% 5.3% 5.1% 3.5%

Current ratio (x) 2.6 3.1 1.7 2.4

Days cash on hand (days) 229.0 224.4 159.5 190.0

Gross accounts receivable (days) 46.5 45.4 43.0 45.0

Annual debt service coverage (x) 6.7 5.4 4.0 5.2

Debt-to-capitalization (%) 34.3% 30.6% 45.9% 31.8%

Capital expense (%) 8.1% 8.3% 8.0% 8.6%

Budget/Target


Acute Admissions 28,470 28,305 28,189 28,750

Patient days 172,255 177,765 180,692 177,640

Observation Patients - MC only 3,832 4,278 4,359 4,515

Post Procedure Patient - MC only 5,419 5,005 5,604 4,555

Average length of stay - MC 5.75 5.99 6.03 5.80

Clinic visits 803,161 842,861 887,490 857,542

ER visits - MC only 58,544 60,646 62,998 60,962

Medicare case mix index - MC 2.10 2.14 2.28 2.10

FTE's (including contract labor) 7,030 7,562 7,955 7,757



Financial Ratios





Operating Statistics

1

Actual Budget % Variance Prior Year Actual Budget % Variance Prior Year

ADMISSIONS: ACUTE INPATIENTS:

Adult 23,836 24,176 (1.4%) 23,827 Inpatient Days 180,692 177,640 1.7% 177,765

Pediatrics 2,775 2,890 (4.0%) 2,882 All Payor CMI Adjusted ALOS - MC 2.87 2.84 1.1% 2.94

Psychiatric 1,189 1,234 (3.6%) 1,209 Average Daily Census 493 485 1.6% 487

Transitional Care 389 450 (13.6%) 387 Births 1,671 1,743 (4.1%) 1,674

Subtotal Acute 28,189 28,750 (2.0%) 28,305

Observation 4,359 4,515 (3.5%) 4,278 OUTPATIENTS:

Clinic Visits 887,490 857,542 3.5% 842,861

Total Admissions 32,548 33,265 (2.2%) 32,583 Average Daily Visits 3,735 3,609 3.5% 3,564

Emergency Room Visits - MC 62,998 60,962 3.3% 60,646

Adjusted Admissions 59,278 60,299 (1.7%) 58,221

Post Procedure 5,604 4,555 23.0% 5,005

. SURGICAL CASES

CASE MIX INDEX: UVA Main Hospital Operating Room (IP and OP) 17,328 17,596 (1.5%) 17,353

UVA Outpatient Surgery Center 12,114 12,100 0.1% 11,487

All Acute Inpatients - MC 2.10 2.04 2.9% 2.04

Medicare Inpatients - MC 2.28 2.10 8.6% 2.14

Total 29,442 29,696 (0.9%) 28,840

($s in thousands) Actual Budget % Variance Prior Year ($s in thousands) Actual Budget % Variance Prior Year

NET REVENUES: NET REVENUE BY PAYOR:

Net Patient Service Revenue 1,456,746 1,430,677 1.8% 1,373,355 Medicare 424,769$ 403,438$ 5.3% 399,292$

Other Operating Revenue 52,354 44,328 18.1% 44,850 Medicaid 279,599 283,090 (1.2%) 274,120

Total 1,509,099$ 1,475,005$ 2.3% 1,418,204$ Commercial Insurance 213,468 222,313 (4.0%) 224,478

Anthem 302,759 291,979 3.7% 261,828

Aetna 99,551 101,132 (1.6%) 99,155

EXPENSES: Other 136,600 128,724 6.1% 114,482

Salaries, Wages & Contract Labor 659,612$ 653,142$ (1.0%) 609,080$ Total Paying Patient Revenue 1,456,746$ 1,430,677$ 1.8% 1,373,355$

Supplies 347,611 329,127 (5.6%) 322,921

Contracts & Purchased Services 310,002 318,657 2.7% 299,871 OTHER:

Depreciation 94,351 99,957 5.6% 91,005 Collection % of Gross Billings 30.20% 29.66% 1.8% 30.92%

Interest Expense 20,535 21,987 6.6% 20,393 Days of Revenue in Receivables (Gross) 43.0 45.0 4.4% 45.4

Total 1,432,112$ 1,422,869$ (0.6%) 1,343,269$ Cost per CMI Adjusted Admission 11,573$ 11,637$ 0.5% 11,658$

Operating Income 76,988$ 52,136$ 47.7% 74,935$ Total F.T.E.'s (including Contract Labor) 7,955 7,757 (2.6%) 7,562

Operating Margin % 5.1% 3.5% 5.3% F.T.E.'s Per CMI Adjusted Admission 23.53 23.22 (1.3%) 23.37

OPERATING STATISTICAL MEASURES - June

OPERATING FINANCIAL MEASURES - June

OTHER INSTITUTIONAL MEASURES - Year to Date


SUMMARY OF OPERATING STATISTICS AND FINANCIAL PERFORMANCE MEASURES

Fiscal Year to Date with Comparative Figures for Prior Year to Date -June FY2016

Excludes Culpeper Regional Hospital

OTHER INSTITUTIONAL MEASURES - Year to DateADMISSIONS and CASE MIX - Year to Date

REVENUES and EXPENSES - Year to Date

9

2


SUMMARY OF OPERATING STATISTICS AND FINANCIAL PERFORMANCE MEASURES

Fiscal Year to Date with Comparative Figures for Prior Year to Date - March 31, 2015

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, 7 North, NICU and PICU

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

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

10

11





AGENDA ITEM: IV. School of Medicine Research: Recent

Successes


BACKGROUND: David S. Wilkes, M.D., is the Dean of the

University of Virginia School of Medicine. Dr. Wilkes is a

nationally recognized specialist in pulmonary disease and

critical care medicine. Before coming to U.Va., Dr. Wilkes

served as executive associate dean for research affairs at the

Indiana University School of Medicine.

William Jeffrey Elias, M.D. attended the University of

Virginia for medical school and neurosurgical training.

Following residency, he pursued additional training in

stereotactic and functional neurosurgery at the Oregon Health

Sciences University. In 2002, Dr. Elias returned to the

University of Virginia where he is currently the director of

stereotactic and functional neurosurgery with a large

multidisciplinary program in the surgical treatment of movement

disorders, epilepsy, and spasticity.

Sean R. Moore, M.D., M.S., is an Associate Professor of

Pediatrics at the University Virginia School of Medicine and

Director of Research for the Division of Pediatric

Gastroenterology, Hepatology, and Nutrition. Introduced to the

grand challenges of childhood diarrhea and malnutrition two

decades ago as a U.Va. graduate student, his laboratory

focuses on understanding and reversing the vicious cycle

of diarrhea and malnutrition in vulnerable children.

DISCUSSION:

Staying Focused: Focused Ultrasound at U.Va.

Advances in ultrasound technology and MRI have now enabled

the delivery of acoustic energy through the intact human skull

with extreme precision. In 2011, a team at U.Va. performed the

first focused ultrasound treatment for essential tremor - an

event representing a major paradigm shift in the treatment of

movement disorders and neurologic disease. An international

randomized clinical trial, led by researchers at U.Va., recently

12

proved the effectiveness and safety of focused ultrasound for

treating essential tremor and resulted in the first FDA approval

for use in the brain. Additional clinical trials are underway

to treat Parkinson’s disease, epilepsy, and pain syndromes.

Understanding and Reversing the Vicious Infection-

Undernutrition Cycle

Dr. Moore's research program encompasses basic,

translational, clinical investigation, and systems biology;

using approaches that span human gastrointestinal stem cell

models of infection, mouse models of undernutrition and

diarrhea, and pediatric studies of gut injury and repair in low-

resource settings. His work is externally supported by the

National Institutes of Health (NIH), The Gates Foundation, and

the Defense Advanced Research Projects Agency (DARPA), with the promise of innovation for precision care of children and adults

with gastrointestinal diseases.

13





AGENDA ITEM: V. Medical Center Chief Executive Officer

Report


BACKGROUND: Pamela M. Sutton-Wallace is the Chief Executive

Officer of the University of Virginia Medical Center. Before

assuming this position on July 1, 2014, she served as Senior

Vice President for Hospital Operations of Duke University

Hospital where she was responsible for several key operational

areas, including Perioperative, Emergency/Trauma, Diagnostic,

Medical-Surgical Critical Care, and Facility and Support

Services. Ms. Sutton-Wallace joined Duke in 1997 as an

administrative fellow and held several management positions

during her 17-year tenure at the Duke University Health System.

DISCUSSION: The Chief Executive Officer of the Medical Center

will inform the MCOB of recent events that do not require formal

action. In addition, the following describes significant

operations of the Medical Center, focused on our Fiscal Year

2016 priorities of healing, serving, engaging, and building,

occurring since the last MCOB meeting.

OPERATIONS REPORT

On August 1, William “Bill” Fulkerson joined the Medical

Center as Chief Operating Officer. Mr. Fulkerson came to U.Va.

from Vanderbilt University Medical Center where he served as

Associate Operating Officer. He previously worked at Duke

University Hospital, where he served as Administrator for

Oncology Services and Cellular Therapies. At U.Va., Mr.

Fulkerson will oversee the day-to-day operations of the Medical

Center, including oversight of the 11 clinical services lines.

In addition, Mr. Fulkerson will be a key leader in the Be Safe

initiative and the University Hospital bed tower expansion

project.

HEALING: Clinical Quality and Safety

U.S. News and World Report’s 2016-2017 “Best Hospitals”

guide has recognized eight University of Virginia Health System

specialties and ranked U.Va. as the No. 1 hospital in Virginia

14

for the first time. In addition, U.S. News and World Report’s

2016-2017 “Best Children’s Hospital” recognized four specialties

in the UVA Children’s Hospital.

Be Safe performance improvement coalitions supporting

readmission reduction, improvement in the patient experience (in

both the inpatient areas and the Emergency Department (ED)),

reducing mortality, reducing hospital-acquired pressure ulcers

(HAPU), and development of the Model Cell (on 3 West) are in

varying stages of 90-day improvement “sprints.” The Be Safe

Steering Committee has also approved a revised set of “Big 6”

metrics for Fiscal Year 2017 on which ongoing improvement

efforts will be focused. These metrics are aligned with the

Fiscal Year 2017 Balanced Scorecard, which in turn aligns with

our six U.Va. Health System goals.

At the end of Fiscal Year 2016, Be Safe “Big 6” performance

metrics for central line-associated blood stream infections

(CLABSI), catheter-associated urinary tract infections (CAUTI),

and patient falls with injury all saw improvement. As a result,

these outcome measures have been transitioned to clinical

operations owners for ongoing oversight. A new Be Safe

dashboard for Fiscal Year 2017 has been developed with the

following new measures: Team Member Injuries, Positive C. Diff,

and Hand Hygiene Compliance.

Be Safe and various corporate services departments (Quality

and Performance Improvement, Finance, Project Management,

Analytics, Health Information and Technology, Facilities, and

Marketing) continue to adjust our support services to align with

the new Service Line structure. This involves the completion of

Service Line-based work plans and scorecards (reflecting the

Fiscal Year 2017 Balanced Scorecard), as well as providing

Performance Improvement Coaching support at the Service Line

leadership level.

SERVING: Patient Experience

In June, the Patient Care Services team implemented the

four components of the Inpatient Patient Experience Bundle.

This collection of evidence-based best practices includes Leader

Rounding, Comfort Rounds, Bedside Handover of Care, and Quiet at

Night. They were developed from established Best Practices and

customized by unit champions and supported by the Patient

Experience Office. The Bundle had an impact on the patient

experience outcomes even during the development phase due to the

engagement of front line staff as champions.

15

The ED process improvement team continues to focus on

monitoring the communication standards and scripting that was

implemented in January 2016. The focus on better informing

patients about delays during their care has been proven to

impact the patient’s overall experience and has been supported

by outcomes. Ongoing observation and feedback have been used to

extend the strong performance of the first quarter into the

second quarter. Their satisfaction score in the first and

second calendar quarter of 2016 (84.5) is above goal (83.5).

ENGAGING: Team Member Engagement

The annual U.Va. Health System Team Member Engagement

Survey results were released on June 29. Engagement at the

Medical Center has increased slightly from 3.97 to 3.99. This

is positive news given the amount and pace of change occurring

in the Medical Center.

A recognition breakfast occurred on September 7th to

celebrate the top performing Medical Center leaders on last

year’s survey: those with engagement scores in the top 10%, and

the five most improved departments. In an effort to allow

leaders to focus on competing priorities, the action planning

process has been suspended this year. Support will be provided

by Organizational Development and Patient Experience to select

teams with three year trends of low engagement, low patient

satisfaction, and high turnover.

This is the fourth survey administration with Gallup, whose

contract expires on December 31, 2016. To determine the best

vendor to meet engagement survey needs in the future, a Request

for Proposal (RFP) was posted on Monday, July 25, 2016. An

advisory group of team members and senior leaders will attend

vendor demonstrations and make a recommendation as to which

vendor best fits the Medical Center’s needs. The goal is to the

complete process and have a vendor contract awarded by December

31, 2016.

BUILDING: Growth and Stewardship

The Medical Center officially broke ground on the hospital

expansion project in June, and the project remains on schedule.

As facility planning concludes and construction ensues, clinical

and operational planning will continue throughout Fiscal Years

2017 and 2018 to ensure a successful transition and optimization

of the new space.

EPIC implementation is entering year three, which includes

implementation of several clinical EPIC modules: revenue cycle

16

(including scheduling), perioperative and anesthesia services,

clinical lab services and home health. The Patient and Family

Friendly Access (“PFA”) project, which focuses on scheduling

operations, is integral to the EPIC project and this operational

redesign is being executed in parallel with EPIC technical

implementation. Because scheduling functions occur in both the

School of Medicine and Medical Center by staff from both

entities, scheduling redesign is taking place with close

collaboration between the Medical Center and the School of

Medicine. Three semi-centralized scheduling pods (Oncology,

Women’s and Children’s and Transplant) are being activated in

Fiscal Year 2017. The remaining scheduling pods will be

activated over the next two years.

Since March, the Medical Center has worked with Latimer

Health Strategies and other consulting partners to conduct a

Health System integrated space planning assessment of our

physical space across the clinical, research, and

teaching/administrative domains. Final recommendations will

include requests to expand and modernize Health System

facilities, particularly ambulatory and research operations,

over the course of many years to effectively meet current and

future patient and faculty needs.

Recent Designations & Re-Certifications

The following certification and accreditation activities

occurred during the past 90 days:

The Pharmacy Residency programs were re-accredited by

the American Society of Health System Pharmacists.

Inpatient Psychiatry successfully completed a

triennial licensure re-inspection.

The Histocompatibility Laboratory was re-accredited by

the American Society of Histocompatibility and

Immunogenetics.

The Medical Transport programs were re-accredited by

the Commission on the Accreditation of Medical

Transport Systems.

The Lynchburg Dialysis Center was re-certified for the

End Stage Renal Disease Program by the Centers for

Medicaid and Medicare Services.

17

Radiology services in the Battle Building were re-

accredited by the American College of Radiology.

The Ventricular Assist Device program was re-certified by

the Joint Commission.

The new dialysis centers at Appomattox and Staunton

achieved initial certification for the End Stage Renal

Disease Program.

The State Fire Marshal completed a re-inspection of the

main hospital building.

18





AGENDA ITEM: VI. Health System Development Report


BACKGROUND: Health System Development provides reports of

recent activity to the MCOB from time to time.

DISCUSSION:

SIGNIFICANT GIFTS

April 1 – June 30, 2016

An anonymous alumna is establishing a $1 million bequest to

create an undergraduate scholarship for the School of Nursing.

A grateful patient committed $500,000 in support of Dr.

Loughran’s research in LGL Leukemia.

An anonymous donor committed $250,000 in support of the

Gynecologic Oncology Research Program.

Following a visit to the Medical Center Situation Room for

a ceremony honoring her late husband, a friend of the Health

System announced her decision to permanently endow the Charles

L. Brown Patient Care Quality Award with a $250,000 estate gift.

A friend of the Health System, through his family

foundation, has committed an additional $125,000 to support a

collaborative Alzheimer’s research project between John Lukens

(School of Medicine – Neuroscience) and Chris Deppmann (College

of Arts & Sciences – Biology), augmenting his existing 2016 gift

of $750,000.

A medical alumnus committed $100,000 to create a named

educational and research fund in honor of his parents. The

Department of Orthopaedics also agreed to match his contribution

with departmental funds.

An anonymous donor committed $125,000 through the

Charlottesville Area Community Foundation to support epilepsy

research in the Division of Pediatric Neurology.

19

The Department of Neurosurgery pledged $100,000 to raise

funds for the John Jane Fund for Excellence in Neurosurgery.

The Jane family has made a similar commitment, and fundraising

is ongoing among former residents and friends of Dr. Jane.

A medical alumnus committed $100,000 to the John Jane Fund

for Excellence.

Friends of the Health System made an additional gift of

$100,000 to support the Christiana M. Brenin Hematological

Oncology Fellowship Program, bringing their total giving to the

charitable remainder trust to $1 million. They are considering

a gift of their estate to the Cancer Center.

FUNDRAISING PROGRESS THROUGH JUNE 30, 2016*

FY16 to date progress

(7/1/15 through 6/30/16)

FY 16

Annual Goal

FY 16

Progress to

Date

FY 15

(through

6/30/15)

New gifts $40,000,000 $42,421,946 $40,700,643

New pledges $6,000,000 $6,286,785 $3,703,518

Total new commitments

(excludes pledge payments

on previously booked

pledges)

$46,000,000 $48,708,731 $44,404,161

New expectancies $9,000,000 $9,219,876 $20,290,000

Total new gifts, pledges,

and expectancies

$55,000,000 $57,929,607 $64,694,161

*unofficial numbers for FY 16 (official numbers have not yet

been released by University Advancement)

university of virginia board of visitors meeting of the …16... · fund balance $1,433.7 $1,585.8...

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