Arkansas Business' Mark Friedman pores over the UAMS books and finds they've papered over operating losses with capital gifts to show a positive outcome for the big medical sciences campus' last fiscal year. Operating losses in October alone were $2.8 million.
Dr. Daniel Rahn, the new UAMS chancellor, hasn't ruled out layoffs as part of his strategy to correct things, but other cost-cutting measures are first up. Some investments may have to be sold to meet cash flow and to complete the Rockfeller Cancer Insitute tower. A drop in state subsidy, a decline in investment income and new jobs and facilities have all contributed to the situation.
Rahn, who had been president of the Medical College of Georgia, said he has plans to stop the bleeding.
He has asked all sections of the campus to "constrain spending to the extent possible to create some operating margin."
Rahn said no pay cuts were planned, but overtime would be reduced.
Rahn also said UAMS was going to take a hard look at medical tests that are ordered, such as X-rays, to see if they're really necessary.
He projects cost-cutting moves could save the hospital $3 million a month.