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Hogan to ask for new 250-bed hospital
Paul Petrone
Issue date: 2/3/09 Section: News
President Michael Hogan announced at a university senate meeting Monday night that he will meet with the Connecticut Legislature, along with the CEO's of several of Connecticut's biggest hospitals, with a motion to build a new 250-bed UConn hospital.
The hospital, which is estimated to cost the state $500 million over a period of 30 years, would turn UConn from owning one of the smallest public university hospitals to owning one of the biggest in the United States.
"We might never get this chance again," said Hogan, referring to the support of many other state hospitals including Hartford Hospital, which would assume all operating financial risk of the institution upon its completion.
The current UConn Health Center, which uses half the university's budget and produces half of the university's research, is chronically over budget, according to Hogan.
"It is a structural gap [in funding versus expense] and it will not simply go away on its own," Hogan said.
The Health Center carried a budget deficit of more than $20 million over the last two years and is expected to do the same this year, with no solution in sight, Hogan said. If this new hospital is not built, Hogan fears that the Health Center would simply have to close due to spiraling debt.
This announcement came right after a myriad of bad news from the president involving university-wide budget cuts.
A 10 percent reduction in funds to the university from the state was originally expected, but after talks with university officials, that reduction was more likely to be around 5 percent, according to Hogan.
However, even a 5 percent budget cut, which is approximately $34.5 million, could mean 160 layoffs to the UConn staff, he continued.
This lack of funds is due to a 24 percent drop-off in state revenues last year due to a declining national economy, which could drop another 40 percent this year, said Hogan.
The only way to avoid the job losses would be if tuition were raised, a decision that will be announced by Gov. M. Jodi Rell on Wednesday, according to Hogan.
"We can either solve this gap with layoffs or tuition increases," said Hogan. "Hopefully we do not have to do both."
The hospital, which is estimated to cost the state $500 million over a period of 30 years, would turn UConn from owning one of the smallest public university hospitals to owning one of the biggest in the United States.
"We might never get this chance again," said Hogan, referring to the support of many other state hospitals including Hartford Hospital, which would assume all operating financial risk of the institution upon its completion.
The current UConn Health Center, which uses half the university's budget and produces half of the university's research, is chronically over budget, according to Hogan.
"It is a structural gap [in funding versus expense] and it will not simply go away on its own," Hogan said.
The Health Center carried a budget deficit of more than $20 million over the last two years and is expected to do the same this year, with no solution in sight, Hogan said. If this new hospital is not built, Hogan fears that the Health Center would simply have to close due to spiraling debt.
This announcement came right after a myriad of bad news from the president involving university-wide budget cuts.
A 10 percent reduction in funds to the university from the state was originally expected, but after talks with university officials, that reduction was more likely to be around 5 percent, according to Hogan.
However, even a 5 percent budget cut, which is approximately $34.5 million, could mean 160 layoffs to the UConn staff, he continued.
This lack of funds is due to a 24 percent drop-off in state revenues last year due to a declining national economy, which could drop another 40 percent this year, said Hogan.
The only way to avoid the job losses would be if tuition were raised, a decision that will be announced by Gov. M. Jodi Rell on Wednesday, according to Hogan.
"We can either solve this gap with layoffs or tuition increases," said Hogan. "Hopefully we do not have to do both."
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