UAMS Chancellor Dan Rahn Attacks Red Ink With Balanced Budget Plan

by Mark Friedman  on Monday, Feb. 17, 2014 12:00 am  

UAMS Chancellor Dr. Dan Rahn said he has a plan to slash expenses and increase revenue that should generate $40 million for the campus during the next 18 months. (Photo by Jason Burt)

In addition to focusing on being more efficient, UAMS will adjust the way it cares for patients.

Most of the time, UAMS’ hospital is full. Last year, Rahn said, hospitals from around the state wanted to transfer about 500 patients to UAMS that the hospital was too full to accept at the time of the request.

“So we want to create that capacity, and we’re working on that” by managing patient flow, Rahn said.

Through better coordination with families, patients can often be sent home earlier in the day. “Several hours of earlier discharge makes a big difference in our bed capacity in the course of a day,” he said.

Another area for savings is the energy bill. In 2012, UAMS completed a $22 million equipment upgrade to its existing central energy plant. For UAMS, the new plant and plant upgrades have led to an annual energy savings of $5.5 million, Taylor said.

With all of UAMS’ expense-saving measures and additional revenue, it has a target “of basically breaking even on the second six months and ending up the year going down about $13 million to $14 million in net assets,” Rahn said.

The net asset amount includes investment gains, federal grants for capital projects and capital expenditures, which aren’t calculated for operating gains or losses.

“I think it’s in some ways a miracle that our finances are as strong as they are, given the combination of our low tuition rates, the breadth of our educational programs, the research, … and the large number of uninsured patients that exist in Arkansas,” Rahn said. “When you put all of that together, this is pretty remarkable.”

 

 

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