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KUMC and KU Hospital audits
KU Hospital affiliation
Major findings of Legislative Post-Audit reports into the Kansas University Medical Center and KU Hospital:
Q: Does KUMC have sufficient cash flow to cover its major financial obligations and employment agreements?
A: The School of Medicine has recorded about $79 million in commitments to faculty since 1999 and appears to have been able to meet most commitments.
How has the money the Legislature appropriated for KUMC's Cancer Center been spent?
The Legislature appropriated $5 million to the Cancer Center for both fiscal years 2007 and 2008. In fiscal year 2007, the Cancer Center spent 45 percent of its appropriation on research; most funding went to salaries. In fiscal year 2008, the Cancer Center projects it will spend 16 percent of its appropriation on research.
Was KU Hospital's separation agreement with the former chief executive officer appropriate and allowable?
The KU Hospital Authority executed a $1.8 million separation agreement with former chief executive officer Irene Cumming. Nothing prohibited the hospital board from spending this amount. Although there was little hard information we could review or report on (some of the information we reviewed is confidential), we concluded the separation agreement didn't appear to be out of line assuming the former CEO carries out the additional responsibilities outlined in the agreement.
Was the hospital's purchase of an electronic medical records system appropriate and allowable?
The hospital contracted for a medical records system projected to cost $50 million over five years. The hospital's evaluation was very thorough and appeared to be objective.
How has spending for education and research functions from the Medical Center's operating grant changed in recent years, and how has that affected the amounts of money distributed to the Kansas City and Wichita campuses?
Since 2001, there has been a significant shift toward research spending at the Medical Center, mostly at the Kansas City campus. Differences in spending for research and education in Kansas City and Wichita have raised concerns in Wichita.
How does the relationship between the KU Hospital and KUMC compare to what is envisioned in state law and to medical schools and teaching hospitals in other states?
The organizational relationship between the hospital and KUMC follows state law and is similar to many other states. Comparisons with other state medical centers have significant limitations, but the support KUMC has received from all its affiliated hospitals does appear to be relatively low.
Does KU Hospital have a reasonable method for assigning a value to the care provided to indigent patients?
When reporting the value of uncompensated care in its financial statements, the hospital follows generally accepted accounting principles. The hospital's uncompensated care charges are much higher than estimates based on either discounted rates for paying-patients or the cost of care.
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