President's Letter Regarding University Finances

William F. Owen, Jr., MD
President, University of Medicine and Dentistry of New Jersey

Dear Members of the UMDNJ Community,

In my last letter to you, I shared that UMDNJ’s sound financial status was increasingly threatened. A challenging set of circumstances jeopardized UMDNJ’s creditworthiness. These included, but were not limited to The University Hospital’s projected negative operating margin for 2009, the size of UMDNJ’s debt to the State of New Jersey and the State’s challenging, near-term financial outlook.

In the weeks since then, fruitful discussions were held with state, county, local and business leaders and our internal and external stakeholders to identify interventions to aid UMDNJ in managing our financial challenges. Leaders throughout the state, including the Executive Branch, state legislators, local government and community groups, have expressed their concern and support. There is widespread agreement that UMDNJ is a highly valued, high performing statewide asset of vital importance to the entire region.

I am pleased to tell you that we have developed a forward-thinking approach with the State of New Jersey that allows UMDNJ to meet its short-term financial obligations. Although we have yet to develop a similar plan for the long-term support of UMDNJ, we are now able to go into our next fiscal year without a change in the University’s missions.

We will continue to seek ways to boost revenues while trimming expenses during this period of economic uncertainty. On the federal level, we are closely following the new administration’s economic stimulus package and the opportunities that may be available for academic health centers. On the local level, we are gratified by the Commissioner of Health and Senior Services’ commitment to a continued partnership between UMDNJ and the State of New Jersey and of better coordination with other health care providers in the region. We welcome this renewed spirit of cooperation and greater sense of a shared mission with our partners.

I want to use this opportunity to express gratitude to the members of UMDNJ and The University Hospital’s management teams for their extraordinary work on this matter. As always, I welcome your suggestions and support as we work through the challenges facing us in a very uncertain economic climate. Together, we will continue to fulfill our mission to serve our students, patients, communities, and the people of New Jersey.

Sincerely,

William F. Owen, Jr., MD, President