Bookmark and Share

UK HealthCare Status Report Shows Growth

Media Contact: Amanda Nelson, 859-323-6363, x224 

LEXINGTON, Ky. (June 16, 2008) - The University Health Care Committee, a standing committee of the University of Kentucky Board of Trustees, received a status report today on UK HealthCare achievements during the last five years and reviewed goals for the next five years during a daylong retreat.

"We need to be planning ahead strategically for the health care needs of the Commonwealth. We must focus on helping the university move forward and we must continue to energize the economy of the Bluegrass even as we look back at our achievements," said UK Executive Vice President for Health Affairs Dr. Michael Karpf.

UK HealthCare officials noted:

  • From FY2004 to FY 2008 the UK College of Medicine faculty grew by over 160 individuals and the recruits have come from the very best institutions in the country;
  • UK College of Medicine faculty members have garnered much national recognition;
  • UK HealthCare is in the process of establishing a virtual network of regional providers across the state that expands local services and expertise while also expediting access to advanced subspecialty care in Lexington when necessary. Keeping patients in their local communities for as long as possible is a fundamental commitment, Karpf said;
  • Clinical activity has grown from 19,098 patient discharges in FY 2003 to 33,070 discharges in FY 2008 -- a growth of 73 percent;
  • UK HealthCare will soon receive final bids on Phase 1a of the new patient care facility. Phase 1a will build 1.2 million square feet and fit out 580,000 square feet. Phase 1a creates a dramatically expanded emergency room and 128 beds inclusive of much needed intensive care units and private patient rooms. Phase 1a will also develop comforting and reassuring services for patients, family, faculty, staff and the community by incorporating art, music, spirituality and landscaping into the healing environment.
  • UK has grown from a small academic medical center (25th percentile) to a very large academic medical center (75th percentile) that rivals the most prestigious medical complexes in the country in size. With its expanded size and scope it can now truly aspire to become a Top 20 institution.
  • Net hospital revenue for FY 2008 will exceed $700 million an increase of $400 million, or 130 percent, from FY 2003.
  • The UK College of Medicine budget for FY 2009 will approach $500 million, making UK HealthCare a more than $1.2 billion health care organization and growing;
  • The fiscal performance of UK HealthCare has secured funding for Phase 1a. This portion of construction will cost $525 million, as originally proposed, with $250 million from bond receipts and $275 million from cash flow.
  • From FY 2004 to FY 2008, UK HealthCare has created over 2,000 jobs with an increase in the salary and benefits line of over $200 million.

"In spite of these impressive achievements," Karpf said, "if the University of Kentucky wants a medical center of national prominence that will improve the health care of Kentucky and beyond while expanding the university and helping drive the economics of the Bluegrass and beyond , UK HealthCare must continue to aggressively grow and set ambitious targets for the next five years." According to Karpf, UK HealthCare must:

  • Aggressively recruit clinical, as well as research, faculty who continue to build coordinated, nationally-recognized programs of excellence. Much of this recruitment will focus on nationally established and prominent faculty and teams, Karpf said. The faculty is projected to grow by 75-100 individuals by FY 2013.
  • Mature relationships with regional providers; although, Karpf said, UK HealthCare is not aggressively engaged in acquisitions and mergers it must be open to such transactions in very specific special circumstances;
  • Achieve clinical volumes approaching or exceeding 36,000 discharges by FY 2013. This would represent nearly a doubling of volumes from FY 2003;
  • Aggressively pursue completing Phase 1b of the construction project which would fit out an additional 480,000 square feet and allow for the evacuation of the current hospital. Clearing this space will cost more than $240 million in today's money. If the fit out is done through cash flow it will take until 2018 to 2020. Expedited schedules involving philanthropy and possible additional bond issuances need to be analyzed since they may be able to save tens of millions of dollars in escalation and operating costs, Karpf said. Financial models are being developed;
  • Commit to eventually establishing an expanded Kentucky Children's Hospital to serve the Commonwealth appropriately;
  • From FY 2004 to FY 2013, the anticipated investment in the clinic enterprise will exceed $1.6 billion. This investment will be completely self-funded through operations and bond issues.
  • Increase NIH funding to at least $90 million by FY 2013. Research space is the absolute limiting factor, Karpf said.

 

Page last updated: 11/20/2013 4:23:11 PM