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1 février, 2008 10:02

Friday, January 18, 2008

TED SICKINGER The Oregonian Staff

Oregon Health & Science University plans to announce today that it will cut 200 to 300 jobs, raise tuition by 10 percent to 25 percent, trim construction on Portland's South Waterfront, and restructure or close a score of clinical, research and education programs.

The cutbacks are OHSU's first specific responses to an Oregon Supreme Court ruling in late December that cleared the way for the family of a brain-damaged child to pursue millions of dollars in malpractice damages from the university.

The ruling effectively eliminated a liability cap of $200,000 designed to protect state agencies from major damage awards.

OHSU figures the ruling will add $30 million a year in insurance and administrative expenses. That's only 2 percent of OHSU's annual operating budget of about $1.5 billion, but it amounts to about two-thirds of its annual support from the state's general fund.

In an institution that is struggling to become self-supporting, it means big cutbacks to programs and services.

"This is of an unprecedented magnitude," OHSU President Joe Robertson said.

Robertson planned to send an e-mail with details to OHSU staff late Thursday. He will address and take questions from employees in a meeting at 11 a.m. today.

Robertson stressed that OHSU wasn't crying wolf as the Oregon Legislature prepares for a special session next month. He said he had met with the governor and legislative leaders. While they expressed concern about OHSU's finances, they weren't optimistic about providing more money soon.

OHSU, which is Portland's largest private employer with about 12,000 staff, hopes the Legislature will quickly establish a higher cap on damage claims that will pass court muster. That could significantly reduce the December ruling's costs to OHSU, but not soon enough to avert the restructuring.

"To be crystal clear, even if there is a legislative remedy tomorrow, there is no financial relief for OHSU until that remedy is tested in the courts," Robertson said.

He said the cuts are structured to protect the institution's core programs and research expertise.

"The scope of OHSU will be reduced, but the quality will not be compromised," he said.

"At the end of the day, (Oregonians) can have the same confidence in the OHSU experience, whether that's in the clinical, research or educational arena. Unfortunately, there won't be as many OHSU experiences to choose from."

Among the menu of proposed cuts and revenue sources that OHSU will outline today:

Cut 200 to 300 jobs, including positions in financial services, human resources, information technology and legal affairs. Adjust benefits for new hires.

Reduce the medical school class from 120 to 115. Reduce clinical rotations in Bend and Eugene. Raise tuition 10 percent to 25 percent in the schools of dentistry, medicine and nursing.

Transfer or close the Russell Street dental clinic in Portland.

Close or transfer the rural health clinic in Union. Discontinue services to the Health Network for Rural Schools and the Union County corrections program.

Delay planned upgrades and maintenance on university buildings.

Downsize or close the March Wellness Center on South Waterfront.

Defer a new South Waterfront support services building and other capital spending.

Slash unfunded research in the schools of dentistry, medicine and nursing.

Downsize the school of science and engineering, the former Oregon Graduate Institute, and integrate it with the school of medicine.

The elimination of the state tort cap comes when the university is looking to stem large losses from research and education activities and to stabilize its finances after a period of rapid expansion. The added insurance premiums could blow a $150 million hole in the five-year financial plan that Robertson unveiled in early December to achieve those goals.

The cutbacks could discourage some top-notch scientists and clinicians OHSU recruited during its recent expansion -- and put at risk the revenue they attract. Although OHSU says it will maintain its core programs, other states are always on the lookout for talent. Florida recently offered a lucrative incentive package and secured an expansion of OHSU's Vaccine and Gene Therapy Institute there.

OHSU is the core tenant of Portland's newest urban development, and the cutbacks would slow its expansion on South Waterfront. The university also has planned to build a new medical campus on nearby land donated by the Schnitzer family.

OHSU has lobbied the state -- largely unsuccessfully -- to support more education programs to meet a shortage of medical providers forecast in coming years. The current financial woes would not only reduce class sizes but also push tuition at OHSU to the highest among public schools nationwide and in the middle of the pack among private schools.

Robertson said the restructuring plan was developed over the past 10 days with emphasis on maintaining excellence as well as bolstering financial stability.

"OHSU is and will remain financially sound," he said. "That's why we felt the need to act swiftly."

Ted Sickinger: 503-221-8505, tedsickinger@news.oregonian.com