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US News Rankings: UChicago Med School Dropping Like a Stone

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Replies to: US News Rankings: UChicago Med School Dropping Like a Stone

  • Cue7Cue7 Registered User Posts: 2,406 Senior Member
    Trauma center was small potatoes - I think it cost $35M, and there are operating costs every year, but it's not a big expense.
  • FStratfordFStratford Registered User Posts: 409 Member
    Trauma center:

    $40 million in startup costs
    $20 million per year to operate - and it's going to be more than likely to be unprofitable every year because it is Level 1. (If it were a less rigorous level 2, there is a chance to break even). UChicago closed its old trauma center because it was a money sink.

    Having said that, they may have a strategy to stay afloat by linking cancer research to the trauma center.
    And I suppose, it could be a good place for students to intern?

    https://www.dainfo.com/chicago/20160218/hyde-park/u-of-c-trauma-center-could-open-by-early-2018
    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4535320/
  • FStratfordFStratford Registered User Posts: 409 Member
    Question: why doesn't the med school have its own endowment fund?
  • Cue7Cue7 Registered User Posts: 2,406 Senior Member
    @FStratford - what's $20M/yr in operating costs in relation to the operating costs of the entire med plant? I think, frankly $20M/yr is a steal for all the good optics that come with having a Level 1 trauma center on the south side - and a really good leader for the ER.

    Ultimately a turn around will come down to cash - and lots of it. I don't know if that's going to happen.
  • JBStillFlyingJBStillFlying Registered User Posts: 4,959 Senior Member
    A Level I Trauma unit would be a magnet for residencies in emergency medicine. It's kind of the "go to" training ground for that field. And yes, it would provide an interesting clinical setting for med students on rotations.
  • megabusbusmegabusbus Registered User Posts: 3 New Member
    ^ probably too embarrassing to list the endowment separately. feinberg's is 1.8 bil. rush is 500 mil. im not sure if pritzker would even hit rush's number if you exclude non pritzker BSD money.

    They are hiring a new dean for bsd/med school though
  • FStratfordFStratford Registered User Posts: 409 Member
    edited March 27
    @cue7 just to operate the trauma center (employee cost mainly, since it requires hiring 1,000 FTEs)

    Just a point of fact: 10 years ago, UChicago Medicine became profitable by slashing the sized of the Emergency Department. As a result, its bond rating and outlook went from negative to stable. It was that bad. This Level 1 needs to become a real winner (marketing wise and financial wise) for it to be worth the risk of a downgrade. (see chicagobusiness article)

    Right now, the risk is low. Even if the $20 million operating expense is all loss, UChicago Medicine, may be able to handle it since its latest unaudited financial statement shows that it has a $98 million profit, but that would limit its ability to invest in itself for research and other initiatives whose returns are years, decades away. (see p&l pdf link below)

    Think about the opportunity cost too - with $20million annually, one could presumably give $0.25 million scholarship to each each student each year for all four years of their schooling. (although I doubt the school would, so maybe that is too much of a stretch.)

    http://www.chicagobusiness.com/article/20100303/NEWS03/200037306/university-of-chicago-hospital-policy-boosts-profits-as-it-trims-er-traffic

    http://www.uchospitals.edu/pdf/uch_027475.pdf


  • FStratfordFStratford Registered User Posts: 409 Member
    From their P&L the comparable cost for salaries wages and benefits for the existing plant is $442 million, so its a 5% increase in cost but it could be a 20% decrease in profit.
  • FStratfordFStratford Registered User Posts: 409 Member
    @megabusbus LOL

    They should hire their own "business development" employees. I would bet that their alumni base is comparable in wealth to the law school or business school... although their total alumni is only 1/3 in size...
  • ChrchillChrchill Registered User Posts: 1,024 Senior Member
    Perhaps they should engage a Booth team to figure it out ...
  • JBStillFlyingJBStillFlying Registered User Posts: 4,959 Senior Member
    I know that we worked on a related issue during a class at Booth (then the GSB). Pretty sure I recall it was for University of Chicago hospital LOL.
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