Oregon Health & Science University narrowed its projected operating losses, performing better than expected in the first two months of the fiscal year that began July 1, the university’s board of directors heard during its regular public meeting Friday.
OHSU’s board in June approved an annual operating budget of $5.5 billion, with a projected $25 million deficit.
Following the COVID-19 pandemic, the university responded to rising expenses due to inflation and labor costs by eliminating 500 positions over the summer and realigning its focus toward maximizing the delivery of complex, specialized health care. On Friday, health system leaders reported on efforts to increase access for patients who need cancer treatment, neurologic procedures, cardiac care and other complex surgeries available only at Oregon’s academic health center.
“Strategic alignment at this challenging time will protect and enhance OHSU’s unique role as Oregon’s public health sciences university with statutory statewide missions in education, research, patient care and outreach,” reported Lawrence Furnstahl, OHSU’s chief financial officer.
The university is faring better than budgeted in the first two months of the fiscal year, at $16 million in the red, which is $19 million better than expected for July and August.
“Results in the early months of the fiscal year can be erratic,” Furnstahl cautioned in a memo to the board.
He added that complex patient care activity has increased more than expected. OHSU will continue to balance the expected increases in wages and costs through rigorous cost-savings, while also investing in patient-facing staff for behavioral health and other priorities of the state of Oregon.
In other business, the board:
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Elected Chad Paulson as chair, replacing Wayne Monfries, who had served as chair since 2018. Jim Carlson was elected vice chair, replacing Ruth Beyer.
Chad Paulson - Heard an update on measures to focus on complex care for patients from Nathan Selden, M.D., Ph.D., dean of the OHSU School of Medicine, and Joe Ness, M.H.A., B.S.Pharm., interim chief executive officer of OHSU Health.
- Heard an update on the annual assessment of student learning led by Provost Marie Chisholm-Burns, Pharm.D., Ph.D., M.P.H., M.B.A., FCCP, FASHP, FAST, FACHE, who also reported on ongoing progress of an initiative funded by the state Legislature in 2022 to increase the number of graduates from certain OHSU programs by 30%, while increasing the diversity of all OHSU learners to 30% by the year 2030. The goal is to address the health care workforce shortage and address health care inequities, which were exacerbated by the COVID-19 pandemic.
- Received an update on the OHSU Code of Conduct.
- Amended bylaws to allow for up to 30 minutes of public testimony at public meetings.