OSU Center for Health Sciences

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OSU Center for Health Sciences
Center for Health sciences

• Operating Budget
• FY 2004

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Budget Development

• In FY 2002 the medical school budget was
  reorganized to utilize the state funding as a
  match for Medicaid reimbursements
• This leveraging results in a federal income of
  3.8 for every state dollar expended
• These funds must be expended in support of
  treating Medicaid patients
• To accommodate Medicaid patient load, 13 new
  physicians have been added to the staff since
  2002
• OSU-CHS receives patients from Heartland and
  Unicare as the primary Medicaid HMOs

Center for Health sciences
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Fiscal Environment

• Consolidation with OSU-Tulsa was achieved,
  reducing administrative expense by 1 million
  annually
• Layoffs were implemented to reduce permanent
  personnel costs
• The reduction in budget was utilized to offset
  the loss of 1 million in state appropriation for
  fiscal year 2003

Center for Health sciences
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Patient VisitsGrowing out of the Revenue Problem
Center for Health sciences
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Accomplishments of FY 2003

• Achieved national ranking of the Medical School
  in US News
• Increased quarterly Medicaid reimbursement from
  1.8 million to 2.3 million
• Identification of new medical records system and
  practice management software
• Conducted a series of Doctor Orange events
  across the state to tell the medical school story
• State Office of Rural Health placed under the OSU
  Rural Health Policy Center
• Received a 1 million grant to promote health
  careers

Center for Health sciences
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Initiatives for Fiscal Year 2004

• Increase Medicaid patient visits by 10
• Improve cost accounting of clinic operations to
  identify profit opportunities
• Restructure clinic operations for increased
  profitability
• Improve practice plan incentives
• Continue federal and sponsored research program
  initiatives
• Continued focus on operational cost reductions

Center for Health sciences
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Fiscal 2004 Financial Plan

• Revenue Gap 1.7 million
• Responses
• Tuition increase 555,209
• Medicaid reimbursement increase 400,000
• Operational reduction at the
• Hyperbaric Chamber 617,526
• Operational reduction of the Health
• Policy Research Office 173,529

Center for Health sciences
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Tuition Increase and Cap

• Category Cap-Peer Avg. FY 2004
• Resident 14,211 13,144
• Non-resident 27,354 30,581

Center for Health sciences
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Sources of Revenue

• State Appropriations 11,606,460
• Tuition Fees
  05,834,549
• GME PP Reimbursements 10,578,430
• Other Revenue
  715,118
• Auxiliaries Practice Plan 11,242,206
• Stores
  2,090,281
• Grants Contracts __9,046,380 Total Revenue
  51,113,424

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Expenditures

• Instruction 18,480,175
• Research 875,503
• Public Service 182,930
• Academic Support 003,668,480
• Student Services
  561,189
• Institutional Support
  2,925,778
• Physical Plant Operations 1,960,502
• Scholarships
  80,000
• Grants Contracts
  9,046,380
• Stores 2,090,281
• Auxiliaries Practice Plan
  11,242,206
• Total Expense 51,113,424

Center for Health sciences
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Risk Assessment

• Oklahoma Healthcare Authority Medicaid
  reimbursement decrease
• Have hired physicians to treat current patient
  load dependent upon OCHA revenue
• Patient allocation model dependent upon Heartland
  and Unicare HMOs

Center for Health sciences