Chancellor Rahn Aims to Cut Losses at UAMS

by Arkansas Business Staff  on Monday, Nov. 30, 2009 9:28 am  

Dr. Daniel Rahn, the new chancellor of the University of Arkansas for Medical Sciences, has confirmed to Arkansas Business that the hospital unit, UAMS Medical Center, has been losing money in the current fiscal year, which began July 1, and had lost about $2.8 million in October alone.

A front-page story in the Nov. 30 issue of Arkansas Business reports that UAMS had a net loss of $43.1 million last year, when a net income of $1.5 million had been projected. Even granting that $14.6 million of that $43.1 million came from investment losses during the stock market swoon, the net loss was still $28.5 million - a $30 million negative swing from a projection UAMS provided to Arkansas Business just nine months earlier.

A financial statement for the past two fiscal years was completed on Oct. 15, and it predicts that "at best" UAMS will break even in the current fiscal year.

UAMS has "to operate within available resources, and in the recent past we have had expenses outstripping revenue in a number of arenas," Rahn said in an interview. "We're now correcting that and getting back on track. Our commitment is to do that without adversely affecting our continued forward progress as an academic health center."

Rahn, who succeeded Dr. I. Dodd Wilson as UAMS chancellor on Nov. 2, said he had several plans to turn the campus' finances around, and he hasn't ruled out layoffs.

 

 

Please read our comments policy before commenting.
Search

Latest Arkansas Business Poll

Should the alcohol amendment remain on the ballot?