Transcript June 3, 2011 Vision “MUSC should be a Leading and Transformative Academic Health Center.” President Ray Greenberg, M.D., Ph.D. Academic Leadership Retreat- February 2011

June 3, 2011
Vision
“MUSC should be a Leading and Transformative
Academic Health Center.”
President Ray Greenberg, M.D., Ph.D.
Academic Leadership Retreat- February 2011
Transformative Change
“Transformation (1) alters the culture of the
institution by changing select underlying
assumptions and institutional behaviors,
processes, and products; (2) is deep and
pervasive, affecting the whole institution;
(3) is intentional; and (4) occurs over
time”
Overview
 Transformative Change
 MUSC Financial Management
System
 MUSC Strategic Plan
 Tough Questions
Vision
Strategic
Plan
Financial
Management
System
Financial Management -Why Transformative
Change?
• South Carolina has cut appropriations to higher-education by 50+% in
recent years
• South Carolina is one of six states that has faced a budget shortfall equal
or exceeding the state’s higher education expenditures2
• If South Carolina eliminated all state government except education and
Medicaid, the state would still face a budget deficit 2
• South Carolina Governor Nikki Haley has sworn off tax increases
• State Medicaid payments and balance sheet obligations are expected to
continue driving out the “discretionary” budget priorities (like higher
education)
6
(1) Reuters, “South Carolina Scrambles to Deal with Budget Shortfall, January 5, 2011
(2) Quote from State Senator A. Shand Massey; Chronicle of Higher Education, Colleges to Confront Deep Cutbacks, January 3, 2011
Financial Management System
 Not a budgeting system
 Is a blending of vision, operations, strategic goals, financial
management
 Requires university-wide ownership through collective
leadership
Current Funds Flow
8
* Includes transfers and pass through associated with MUHA and UMA
Proposed Financial Management System
9
Why this Model?
 Better Decision-making System
 Incentive based system to grow revenue and control costs
 Decision making at the point of action
 Better understanding of the true costs of operations relative
to revenue
 More Deliberate University-Wide Communication
 Link Academic and Fiscal Forecasting for Longer Term
Planning
 Administrative services have been tied largely to one
funding stream- changing the stream
 Rule based
~17 Months Until Full Implementation
Implementation Progress
Completed:
Current State
Assessment
Model
Development
Communications
& Consensus
Building
Beta Testing &
Reporting
Implementation
• Evaluation of current model incentives,
challenges and funds flows- Funds Flow2010
• Identification of ARCs and development of
revenue and cost allocation methodologiesDecember-January 2010
• MUSC Leadership approval of a revenue and
cost allocation methodology (February 2,
2011)
• MUSC Board of Trustees review of revenue
and cost allocation (February 10, 2011)
• University presentations
• Development of FY2010, 2011 P&L
statements- March & April 2011
• MUSC Academic Leadership approval of a
finalized revenue and cost allocation
methodology (May 23 2011)
11
~17 Months Until Full Implementation
Implementation Progress
Current State
Assessment
Model
Development
Communications
& Consensus
Building
Beta Testing &
Reporting
Implementation
Underway:
• Develop P&L for current FY 2010, FY2011 and
FY2012 for 2013 implementation
• Calculation of funding requirements for
MUSC Investment Fund
• Development of Hold Harmless/Hold Benefit
for initial implementation
• Development of deferred maintenance
funding plan
• Development of Oversight and Operations
committees
• Development of 3-year fiscal forecasting
plans for ARCs
12
• Creation of selected management reports for
education and training of ARC leadership
teams
MUSC Strategic Plan as
Transformative
 Globalization
 To improve the health of people in South Carolina and
globally through the development of collaborative
global partnerships in education, clinical care, and
research
 Entrepreneurship
 Create and sustain a culture, with both pathways and
infrastructure, that will support University-wide
entrepreneurialism. Cultivate opportunities to
explore new portals and partnerships, public and
private, while promoting an ethical framework for
pursuits
MUSC Strategic Plan as
Transformative
 Technology/Innovation
 Provide an environment that promotes the
application, development, and transfer of technology,
fosters and rewards innovation, cultivates human
capital, and responds to emerging priorities to advance
health care, education, and research
 Interprofessional/Interdisciplinary
 MUSC will be a leader in
interprofessional/interdisciplinary practices by building
on existing activities and fostering an environment
that rewards innovative and integrated education,
research, and patient care
Example- Master of Science in
Clinical Research Global
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College of Graduate Studies
Enrollment Management
Risk Management
Administration & Finance
Legal
Library
Information Technology
Education & Student Life
Commission on Higher Education
Foundation for Research Development
Student Advising
Office of International Support
Office of the Provost
Next Steps
 2009-10:
 Defining the Vision
 Formation of Broad Based Strategic Planning Committees
 Articulating the Strategic Plan- Goals & Strategies
 2010-11:
 Approval by Board of Trustees- August
 Implementation Committees
 Specialized subcommittees
 2011-12:
 Integration- MUSC Excellence, Colleges, University Policies,
Administrative Infrastructure, Financial Management
 Business plans
 Center (s) development
Vision
Strategic
Plan
Integration
Financial
Management
System
Tough Questions?