Intercom

Volume2/1983_April08xINTERCOM THE UNIVERSITY OF UTAH April 8, 1983 TO: All University Medical Center Employees FROM: Chase N. Peterson, M.D. Vice President for Health Sciences An article in yesterday's Salt Lake Tribune erroneously linked the impending five percent salary cut for University Hospital employees to artificial heart recipient Dr. Barney Clark's hospitalization costs. As the University administrator ultimately responsible for the Hospital, and as an involved member of the artificial heart team, I would like to clarify the University's position concerning Dr. Clark, and explain the decision to reduce salaries for those of you who are paid by the Hospital. First, University Hospital will pay no portion of Dr. Clark's hospital expenses. The Tribune report is in error. Not one penny of Dr. Clark's bill will be paid by the Hospital, indirectly by other patients, or with state tax dollars-- a fact we have stressed publicly over and over again. The University several months ago told the Clark family that it would arrange for Dr. Clark's bill to be paid by private contributions given for research. Medicare also has agreed to reimburse some of Dr. Clark's treatment costs. Many of these private sources already have come forward. Others are in the wings, and we expect total payment from these sources in the near future. University Hospital's census problems have not appeared overnight. The dip which our financial officers first became concerned about late last year appears to be getting sharper every month. Unfortunately, we see nothing on the economic horizon that would turn this situation around immediately, either for us or for many other hospitals in the state and region. University Hospital receives less than four percent of its budget from state appropriations, and that money is earmarked for educational programs in the Hospital. The rest of the budget must be met from patient care revenue. It is these revenues which have declined with the recession, as wide-scale unemployment has cut people off from hospital insurance plans. VICE PRESIDENT FOR HEALTH SCIENCES 406 PARK BUILDING SALT LAKE CITY. UTAH 84112 801-581-3178 (over) The five percent across-the-board salary reduction which was announced Tuesday and which will go into effect tomorrow is a belt-tightening measure arrived at after several months of watching the census trend. The salary cut was not an easy decision. Other companies and industries have taken this course; it is a painful one, and one the Hospital will reverse just as quickly as circumstances permit. We have every reason to believe that the decisions announced Tuesday will help avert any potential financial crisis this summer and ensure the continued viability of University Hospital. We are taking steps to increase the Hospital census, for example, by appointing new doctors to the Medical School faculty and retaining others whose efforts will result in increased patient admissions appropriate to the teaching, research and patient care missions of the Medical Center and consistent with financial solvency. These faculty salaries are paid from the School of Medicine budget and by private patient fees, and not by Hospital funds. The University asks for your continued commitment to provide the highest quality care to our patients at University Hospital and hopes you will understand this difficult action. This letter has been approved by the University Hospital Board. For the Board, Chase N. Peterson, M. . Chairma