Minutes
Meeting of the 
Academic Medical Centers and Hospitals Committee
of the Board of Trustees of the State University of New York
March 21, 2011

The Academic Medical Centers and Hospitals Committee of the Board of Trustees of the State University of New York held a meeting on March 21, 2011.

Committee Members Present:  	Mr. Carl Hayden
Mr. Stephen Hunt 
Mr. Marshall Lichtman
	Mr. Cary Staller

Committee Liaison Present:   	Ms. Monica Rimai
       
Others Present:			Chancellor Zimpher
					Dr. David Smith
					Dr. John LaRosa (via video)
					Mr. Ivan Lisnitzer (via video)
					Ms. Debra Carey (via video)
					Mr. Paul Davis (via video)
					Mr. Gerry Dantis (via video)
					Ms. Susan Blum (via phone)
					Ms. Kathleen Preston
					Mr. Bill Howard
					
Committee Members Not Present:	Mr. John Murad(Chair)
Ms. Linda Sanford
       							
The Academic Medical Centers and Hospitals Committee meeting was called to order by Trustee Cary Staller at 10:30a.m. on Monday, March 21, 2011 at SUNY Binghamton.  

* Mr. Staller made a motion to accept the minutes from the January 11, 2011, Committee Meeting.  The motion was carried.

* Ms. Rimai made opening remarks to the committee regarding the complete elimination of State support funding to the three SUNY hospitals in the Executive Budget, amounting to about $127 million, along with the diversion of revenue funds from the Long Island State Veterans’ Home to the State General Fund. 

* Ms. Rimai continued that as a result of effective joint advocacy efforts, both houses of the Legislature had provided partial restoration of hospital funds in their budget resolutions; with the Senate providing a 90 percent restoration of funds and the Assembly providing a 50% restoration of funds.

* Mr. Staller commended the Chancellor, Vice-Chancellor, hospital leadership and the rest of the SUNY staff on getting the message out and coordinating the advocacy effort to ensure the executive branch and the Legislature knew the importance of the State support to the SUNY hospitals.

* Ms. Preston reviewed the impact of the Executive Budget on the hospitals along with the recent history of state financial support, and hospital operations.  (See attached)

* Ms. Preston noted that the three hospitals have absorbed $470 million in cost over the three year period.

* During the presentation Ms. Preston noted that it was assumed that there would be no restoration of State funds, along with a 10 percent reduction in Medicaid reimbursement.  Ms. Preston further noted that this reduction make it impossible for the SUNY hospitals to maintain a positive bottom line within two years.

* Ms. Preston noted that SUNY hospitals were within 5% of their regional average hourly wage for nonphysician staff and below 75th percentile and close to the median for medical school faculty salaries for academic medical centers in the northeast region in 2008.   Ms. Preston added that while these figures do not reflect the full impact of the soon to expire collective bargaining agreement, they show that the hospitals do not “pay people too much”, and are competitive within their markets.

* Ms. Rimai noted that it should recognized that there are legitimate important cost differences between the kinds of hospitals we run and the private sector that are frankly good investments for the State to make.  And it has a lot to do with the kinds of patients we serve and payor mix.  Tertiary and quaternary care by definition is going to be more expensive.  And the fact that we are serving certain populations that we are educating students by the way we are educating students that stay in New York.  All of those are cost differentials that are legitimate and supported by the State given that this is a public good.  

* Ms. Rimai noted that the State support is covering exactly what they should be covering and we want them to continue to cover, which is the unique niche that academic hospitals fill - particularly when those academic hospitals are the safety net hospitals.  

* Ms. Preston noted that SUNY has 2000 medical residents and fellow throughout the community.   A reduction in the number of residents and follows would not only impact SUNY hospitals, it would impact the hospitals throughout the community.

* Dr. LaRosa noted that unaccredited offshore medical schools are taking residents slots which makes it difficult to partner with community hospitals in New York City and Long Island.

* Mr. Staller noted that the New York State Senate is currently holding hearings on the issue of the offshore medical schools and that SUNY should get its message before the committee.

* Dr. Smith noted that if Upstate closed, no other hospital between Canada and Pennsylvania would have trauma.  In addition, Upstate is the burn center for 34 counties.

* Mr. Staller made a motion to end the meeting.