A recap of Regents' actions from the May 15-17, 1996 meeting in San Francisco.
A proposal to merge the clinical operations of UC San Francisco and Stanford University were outlined on Wednesday (May 15) by UCSF Chancellor Joseph Martin and other campus administrators during a meeting of the Committee on Health Services. While the committee generally expressed support for the merger, several members raised questions about the transfer of the UCSF medical center to a nonprofit corporation, the makeup of the board of directors of the new venture, potential layoffs, employee wages and retirement benefits. The committee left it to committee chairman, Tirso Del Junco, to decide whether to call a special meeting in the next month to discuss the merger.
UCSF had planned to seek Regents approval in June on a series of agreements to merge UCSF facilities -- UCSF Medical Center, UCSF/Mount Zion and the Langley Porter Psychiatric Hospital and Clinic -- with Stanford University Hospital and the Lucile Salter Packard Children's Hospital at Stanford. The clinical practices of the full-time faculty of the UCSF School of Medicine and Stanford Medical School also would be merged. The merger would require approval of both Regents and Stanford trustees.
Regents were told that academic medical centers are threatened by competition from health maintenance organizations and by reductions in federal and state support for medical education programs. UCSF is seeking the merger with Stanford to enhance its academic mission, to strengthen its regional referral role and to create a more cost-effective academic medical center.
Regents on Thursday (May 16) unanimously adopted a resolution stating that prominent individuals, including Regents and elected officials, "should not seek to influence inappropriately the outcome" of decisions regarding UC student admissions. The resolution was approved after a presentation by Provost Judson King regarding a report in progress on admissions practices. The admissions practices report, due to President Richard C. Atkinson on May 20, was prompted by news stories that implied prominent individuals may have influenced admissions decisions. Under the resolution, Regents may write letters of recommendation, but should "take care to avoid the fact or appearance of self-dealing or special interest."
Each year, UC systemwide receives more than 30,000 inquiries regarding undergraduate, graduate and professional school applications, King said. Of these inquiries, the vast majority are from applicants themselves and their families, friends or counselors. During the past five years, inquiries from prominent individuals regarding undergraduate applicants averaged about 215 per years or 0.7 percent of the 30,000 each year. Less than 12 freshmen per year, or 0.03 percent of all freshmen admitted, have or may have received some positive consideration as a result of inquiries or letters of recommendation from prominent individuals, King said. The remaining applicants were clearly accepted or rejected on their own merits and the decisions were not influenced by the inquiry, King said.
Based upon preliminary discussions, the university is considering taking steps including the clarification of procedures regarding the handling and use of letters of recommendation, and developing and publishing guidelines to govern appeals of negative admissions decision.
Regents voted on Friday (May 17) to repeal the duplicate degree fee policy, which requires that students, who have a baccalaureate or higher degree, pay the full cost of instruction for public higher education in California. The state policy, requiring that public colleges and universities charge the higher fee expires on Aug. 31. For fall 1995, about 80 UC students pursuing second bachelor degrees were subject to the duplicate degree fee. Equivalent to the marginal cost of instruction, the fee was $6,000 per student per year. Regents voted to repeal the fee since the state policy will expire. Earlier, legislation was approved that allowed California State University and the California Community Colleges to discontinue the duplicate degree fee as of Jan. 1.
Regents on Friday (May 17) approved an agreement between UC San Francisco Medical Group and California Pacific Medical Group, a for-profit independent practice association in San Francisco, to form a managed care medical group. The partnership would give UCSF access to California Pacific's managed care patients. To secure a position in the local market, UCSF is seeking access to at least 100,000 managed care enrollees. About 80 percent of the commercially insured population in the San Francisco market is enrolled in health maintenance organizations. By the fall of 1996, half of the San Francisco Medi-Cal population will be required to enroll in a commercial HMO or the local initiative managed care plan.
California Pacific holds 12 contracts with HMOs for commercial enrollees and five for Medicare beneficiaries and other related plans and exclusive provider contracts. Its current enrollment is about 130,000, comparable to Kaiser Permanente in San Francisco. UCSF is not providing capital for the merger, but expects to invest in managed care information systems, development of a limited number of satellite offices and other managed care infrastructure initiatives included in UCSF's five-year capital plan.
Regents on Friday (May 17) approved a proposal by UC San Diego to create a partnership with one or more health care provider organizations to help improve its competitive position in the San Diego market. Preliminary findings from an ongoing study on performance improvement state that the San Diego market will continue to deteriorate for health care providers; the financial condition of UCSD Health Services Enterprises will significantly worsen; and that it would be prudent to pursue a partnership while UCSD Medical Center and Medical Group proceed to improve performance.
UCSD has made progress in developing a primary care network in the local market. Despite the gains made in managed care, it still operates at a competitive disadvantage because it has higher costs than competitors; is not sought after by all health plans; has a less competitive physician organizational structure; and provides a large component of unfunded and underfunded care.
UCSD plans to complete discussions, develop workable models and develop pro forma financial statements within six to nine months and submit details to Regents for review and approval before developing a definitive letter of agreement.
Despite efforts to cut expenses and improve operations, budget projections for 1995-96 show a deficit at the medical center of $20.3 million, $16 million greater than previously projected, UCSD Vice Chancellor for Health Sciences John F. Alksne told Regents. As part of a plan to cut costs within the next fiscal year, about 500 jobs, primarily hospital-based positions, will be eliminated.
Regents on Friday (May 17) approved an amendment to the UC Retirement Plan revising age factors from ages 55 through 59 to adjust for a change made earlier in the pension formula. The new age factors apply to plan members retiring on or after Jan. 1, 1997. The retirement plan provides a defined benefit at retirement based on service credit, compensation and age. Currently, the maximum age factor of 2.41 percent is capped at age 60. Previously, the age factor was capped at 2.41 at age 63, until it was changed in January 1992. At that time, the age factors for ages 60, 61 and 62 were increased to 2.41. However, the age factors for age 59 and below were not adjusted. Regents voted to adjust the age factors between ages 55 and 60 to create more equal increments and a smoother transition.
The following personnel matters were approved by Regents:
The following construction and real estate items were approved by Regents:
The following items were approved by Regents:
Compiled by Communications Services in the Office of the President, laurie.itow@ucop.edu or (510) 987-9195 and phillip.torrez@ucop.edu or (510) 987-9205.