Leslie Peacock wrote here yesterday about UAMS Chancellor Dan Rahn’s presentation to the UA Board of Trustees and the medical campus’ need for greater revenue, else cutbacks be necessary.

Rahn presented an upbeat message to the staff in an e-mail.

Dear UAMS Family,

Yesterday afternoon, I gave a report on UAMS to the University of Arkansas Board of Trustees. In that report I discussed problems we would face if our internal process improvement and revenue enhancement efforts are unsuccessful and if the state decides not to continue the private option for the Medicaid population. I also showed financial projections that are decreases in net assets, not deficits in our operating budget. We will have a positive operating budget this fiscal year but the accounting standards we must adhere to require that we also cover depreciation expense on our facilities and that is where our challenge lies.

Over the last several months I have talked with you in messages, videos and department Town Hall meetings about our internal efforts to be more efficient and increase revenue and to more closely align our College of Medicine and hospital. I have been inspired by the leadership many of you have shown in these efforts. This truly is a Team UAMS effort and as we have discussed requires all of us working together. I am very hopeful that we will be successful and we can meet the goal I have been discussing with you of decreasing costs and increasing revenue by $36 million over two years. In fact, we believe we can achieve $42 million. Other major health care providers in our area have announced reductions in force in the last year. An article in this morning’s paper reported that layoffs were possible at UAMS. Our goal is to avoid layoffs but with restructuring and cost savings measured, we will likely see some positions go away and new ones created.

If we all work together and are persistent and patient, we will continue to grow (as we are now) and have a sustainable financial model. Thank you for your continued support and for your dedication to the people we serve.

Sincerely,
Dan Rahn, M.D.
UAMS Chancellor

Some staff members respond simply: $42 million? From where? Legislative help? THIS legislature?

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