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 ChangeMUSC Financial Management SystemMUSC Strategic Plan

Tough Questions

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)

(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

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Financial Management SystemNot a budgeting system

Is a blending of vision, operations, strategic goals, financial management

Requires university-wide ownership through collective leadership

Current Funds Flow

* Includes transfers and pass through associated with MUHA and UMA

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Proposed Financial Management System

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Why this Model?

Better Decision-making SystemIncentive based system to grow revenue and control

costsDecision making at the point of actionBetter understanding of the true costs of operations

relative to revenue More Deliberate University-Wide CommunicationLink Academic and Fiscal Forecasting for Longer

Term PlanningAdministrative services have been tied largely to

one funding stream- changing the streamRule based

Implementation Progress

Completed:•Evaluation of current model incentives, challenges and funds flows- Funds Flow- 2010•Identification of ARCs and development of revenue and cost allocation methodologies- December-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)

Current State Assessment

Model Development

Communications & Consensus

Building

Beta Testing & Reporting

Implementation

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~17

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Implementation Progress

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•Creation of selected management reports for education and training of ARC leadership teams

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Current State Assessment

Model Development

Communications & Consensus

Building

Beta Testing & Reporting

Implementation

~17

Mon

ths

Unt

il Fu

ll Im

plem

enta

tion

MUSC Strategic Plan as TransformativeGlobalization

To improve the health of people in South Carolina and globally through the development of collaborative global partnerships in education, clinical care, and research

EntrepreneurshipCreate 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 TransformativeTechnology/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/InterdisciplinaryMUSC 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 GlobalCollege of Graduate StudiesEnrollment Management Risk ManagementAdministration & FinanceLegalLibraryInformation TechnologyEducation & Student LifeCommission on Higher Education Foundation for Research DevelopmentStudent AdvisingOffice of International SupportOffice of the Provost

Next Steps 2009-10:

Defining the VisionFormation of Broad Based Strategic Planning CommitteesArticulating the Strategic Plan- Goals & Strategies

2010-11:Approval by Board of Trustees- AugustImplementation Committees Specialized subcommittees

2011-12:Integration- MUSC Excellence, Colleges, University

Policies, Administrative Infrastructure, Financial Management

Business plansCenter (s) development

Tough Questions?