The Ann Arbor Chronicle » UM Health System http://annarborchronicle.com it's like being there Wed, 26 Nov 2014 18:59:03 +0000 en-US hourly 1 http://wordpress.org/?v=3.5.2 UM Regents OK Michigan Health Corp. Plan http://annarborchronicle.com/2012/06/21/um-regents-ok-michigan-health-corp-plan/?utm_source=rss&utm_medium=rss&utm_campaign=um-regents-ok-michigan-health-corp-plan http://annarborchronicle.com/2012/06/21/um-regents-ok-michigan-health-corp-plan/#comments Thu, 21 Jun 2012 21:50:19 +0000 Chronicle Staff http://annarborchronicle.com/?p=90821 At their June 21, 2012 meeting, University of Michigan regents approved the fiscal 2013 business plan and budget for the Michigan Health Corporation. MHC is a nonprofit founded in 1996 that’s part of the UM Health System, with 12 subsidiaries that are operated as partnerships with other entities statewide. [.pdf of FY 2013 budget and business plan]

In fiscal 2013, MHC is projecting a net loss of $4,975,845, compared to a loss of $1,116,769 in fiscal 2012. Those figures incorporate costs for startup operations. If startup costs are excluded, MHC anticipates a $1,489,919 net gain in FY 2013, compared to a projected $2,335,033 gain in FY 2012.

One of the startup ventures being formed is called Paradigm, which is described in the MHC report as a new nonprofit membership corporation to assist physicians treating cancer patients. The Phoenix-based International Genomics Consortium owns a 6% stake in the entity. As part of approving the FY 2013 budget, regents also authorized an increase in the cap for MHC’s capital investment – from $30 million to $45 million. The increase will allow MHC to establish Paradigm with a $15 million investment.

This brief was filed from the Michigan Union Ballroom on the Ann Arbor campus, where regents held their June meeting.

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Renovations OK’d for UM Cancer Center http://annarborchronicle.com/2012/06/21/renovations-okd-for-um-cancer-center/?utm_source=rss&utm_medium=rss&utm_campaign=renovations-okd-for-um-cancer-center http://annarborchronicle.com/2012/06/21/renovations-okd-for-um-cancer-center/#comments Thu, 21 Jun 2012 21:49:40 +0000 Chronicle Staff http://annarborchronicle.com/?p=90827 A $2 million”backfill” renovation project for the University of Michigan Cancer Center was approved by regents at their June 21, 2012 meeting.

According to a staff memo, the project includes renovating about 6,300-square-feet of space that was vacated when the pediatric hematology and oncology units – and both pediatric and adult bone marrow transplant teams – were relocated from the Cancer Center to the new C. S. Mott Children’s Hospital and Von Voigtlander Women’s Hospital. The renovation involves converting pediatric infusion spaces to adult infusion services, and offices to exam rooms. The work also will “provide additional staff team spaces, upgrade and expand public waiting areas, and make other minor changes to improve patient access to educational and support services,” according to the memo.

Ann Arbor Architects Collaborative will design the project, which is expected to be finished by the spring of 2013.

This brief was filed from the Michigan Union Ballroom on the Ann Arbor campus, where regents held their June meeting.

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UM Taubman Health Center Projects OK’d http://annarborchronicle.com/2012/03/15/um-taubman-health-center-projects-okd/?utm_source=rss&utm_medium=rss&utm_campaign=um-taubman-health-center-projects-okd http://annarborchronicle.com/2012/03/15/um-taubman-health-center-projects-okd/#comments Thu, 15 Mar 2012 20:50:12 +0000 Chronicle Staff http://annarborchronicle.com/?p=83574 Two items involving a total of $20.5 million in renovations at the A. Alfred Taubman Health Care Center were approved unanimously by University of Michigan regents at their March 15, 2012 board meeting.

Regents authorized a $13 million project on the first and second floors of the center, which were vacated after the opening of clinics in the C. S. Mott Children’s and Von Voigtlander Women’s Hospitals earlier this year. The 35,000-square-feet of space will be used for a multidisciplinary transplant clinic, an outpatient non-cancer infusion center, and a same-day pre-op clinic. In addition, clinical services will be expanded for neurology, neurosurgery, otolaryngology, and radiology. The outpatient pharmacy also will be relocated and expanded into a shared retail space with MedEQUIP.

The architectural firm of Harley Ellis Devereaux has been hired to design the project, which is expected to be complete by the spring of 2013. The center is a four-story building located at 1500 East Medical Center Drive, on UM’s medical complex.

In a separate vote, regents authorized $7.5 million in renovations of the center’s third floor, which houses outpatient clinics and administrative areas for the Internal Medicine department. The project will renovate 27,500-square-feet of clinical space for gastroenterology, pulmonary, renal, infectious diseases, rheumatology, medical genetics and general medicine.

This brief was filed from the Michigan Union’s Pendleton Room on UM’s Ann Arbor campus, where regents held their March meeting. A more detailed report will follow: [link]

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UM Regents Briefed on Depression Center http://annarborchronicle.com/2011/07/26/um-regents-briefed-on-depression-center/?utm_source=rss&utm_medium=rss&utm_campaign=um-regents-briefed-on-depression-center http://annarborchronicle.com/2011/07/26/um-regents-briefed-on-depression-center/#comments Tue, 26 Jul 2011 12:22:59 +0000 Mary Morgan http://annarborchronicle.com/?p=68360 University of Michigan board of regents meeting (July 21, 2011): Ten years after the 2001 board of regents authorized its formation, the UM Depression Center has become a national leader in breaking the stigma and improving the treatment of this common, debilitating illness.

John Greden

John Greden, director of the University of Michigan Depression Center, briefed regents at their July 21, 2011 board meeting. (Photos by the writer.)

That message was delivered by the center’s director, John Greden – the man whose vision was instrumental in creating it a decade ago. Greden briefed regents on the center’s progress so far, describing its research and outreach efforts, including its leadership in developing a national network of depression centers that he said is strengthening the fight against the illness. He also indicated the center will be launching a fundraising campaign in the near future, to raise more resources in the face of overwhelming demand for services.

In addition to Greden’s report, regents voted on a range of items. The most significant in terms of a financial commitment was approval of a $116 million “deep” renovation of East Quad, a large dorm on East University Avenue. It’s also the home to UM’s Residential College. At the board’s May 19, 2011 meeting, philosophy professor Carl Cohen had raised concerns about the impact of the renovations as initially designed, saying the RC would be pushed into smaller, inadequate space and would “atrophy and fade away.” A schematic design hasn’t yet been presented to the board for approval.

Among other actions, regents also approved a new joint master’s degree program in entrepreneurship to be offered by the College of Engineering and the Ross School of Business. They authorized renaming the department of geological sciences – it will be called the department of earth and environmental sciences. Regents also approved a $698,364 purchase of land at 417 S. Division, next to the UM Institute for Social Research. Within the past year, that’s the third property – all with apartment buildings – that the university has bought to accommodate ISR’s expansion project. Regents approved that project last year.

In the context of board committee assignments, regent Martin Taylor alerted his colleagues that he’d talked with the university’s general counsel about possible conflict of interest issues that might arise for him in the future. The board’s health affairs committee will likely be involving all regents in overseeing a strategic plan for the UM health system – Martin also serves as a director of Blue Cross Blue Shield of Michigan.

Only one person spoke during public commentary. Dan Benefiel, a leader of the Willow Run Tea Party Caucus, sharply criticized the university’s support of globalism and its relationship with China, a country that he accused of stealing intellectual property and trade secrets from the U.S. The “Trojan Horse of China” must be stopped from “unleashing its unsavory minions” on America, he said.

President’s Opening Remarks

The meeting began, as it typically does, with comments by UM president Mary Sue Coleman. Alluding to the week’s scorching temperatures, Coleman said it was fitting to begin her remarks by highlighting UM’s solar car team. Earlier in the week, students had showcased the car by taking it on a demonstration tour throughout the state, she said. They covered about 1,000 miles as a warm-up to the October 2011 World Solar Challenge, a 1,800-mile competition in Australia’s outback. [Last year's edition of the car was also spotted by The Chronicle earlier this month at the Rolling Sculpture car show in downtown Ann Arbor.]

The UM team is reigning champion of the American Solar Challenge, she noted. Coleman said she’s looking forward to the international event, which no college team has won in many years. ”If any college team can do it, we absolutely believe ours can,” she said.

While the solar car team is one of the most visible signs of teamwork on campus, Coleman said, that same spirit is the impetus behind a new degree program that was on the July 21 for regental approval. A joint graduate degree in entrepreneurship has been developed by UM’s College of Engineering and the Ross School of Business – both units have worked together for a long time, she noted.

Julia Darlow, Mary Sue Coleman

University of Michigan president Mary Sue Coleman, right, speaks with UM regent Julia Darlow prior to the start of the July 21 regents meeting.

The degree will be a tremendous addition to the entrepreneurial climate that’s flourishing across campus, she said. Administrators and faculty understand how important the innovations of research universities are to help accelerate the economy, Coleman added. She noted that Stephen Forrest, UM’s vice president for research, made that same point at a recent media roundtable panel sponsored by The Science Coalition in Washington, D.C. It’s also reflected in the Advanced Manufacturing Partnership that UM is participating in – Coleman pointed out that she joined President Barack Obama when he announced the partnership last month. Several UM faculty members will be involved in that effort in the coming months, she said.

July also marks the 40th anniversary of the Apollo 15 flight, manned entirely by UM alumni, Coleman said – David Scott, Jim Irwin and Al Worden. Worden will be returning to campus this fall, she noted, to talk about his experience on the Apollo 15 flight and the future of the U.S. space program.

Coleman concluded her remarks by reporting that earlier this month, she and other UM executives had attended the funeral of Betty Ford. Coleman described the former First Lady as a remarkable woman who spoke her mind, and who was candid about her struggles with breast cancer and alcohol addition. Ford and her husband, former U.S. president Gerald Ford, were intimately involved with the university – most notably through UM’s Gerald R. Ford School of Public Policy. Coleman said the university community would miss Ford and is grateful for the many years of friendship she’d given.

Renovation Projects: East Quad, North Hall

Two renovation projects – vastly different in scale – were on the July 21 agenda for approval.

Renovation Projects: East Quad

Regents were asked to approve a $116 million “deep” renovation of East Quad. The 300,000-square-foot residence hall – located at 701 E. University, between Hill and Willard – houses about 860 students and the Residential College, a living-learning community started in the 1960s. The project is part of a campus-wide ”Residential Life Initiative” first presented to regents in September 2004. Other residence halls – including Alice Lloyd Hall and Stockwell Hall on South Observatory, and Couzens Hall on East Ann Street, among others – have undergone similar renovations since then. The Alice Lloyd Hall project is still underway, with tentative completion by August 2012.

The pending East Quad renovation has caused concern in some quarters. At the regents’ May 19, 2011 meeting, philosophy professor Carl Cohen passionately urged regents to intercede in the renovation of East Quad in order to prevent the Residential College from being pushed into what he described as smaller, inadequate space. If regents did nothing, he said, “your Residential College will atrophy and fade away.” A staff memo on the renovations states that the RC will be renovated to meet “current academic standards.”

The entire project will be designed by the architectural firm of Integrated Design Solutions. Staff will return with a construction schedule and approval of a schematic design at a future meeting.

Royster Harper, UM’s vice president for student affairs, briefly described the building’s history and the proposed renovations. The project will revitalize the East Quad community, she said, and strengthen the connections between the academic activities and residential life.

Tim Slottow, Andrea Fischer Newman, Ora Pescovitz

From left: UM chief financial officer Tim Slottow, regent Andrea Fischer Newman, and Ora Pescovitz, UM executive vice president for medical affairs.

Regent Andrea Fischer Newman jokingly made a motion to approve the item after Harper’s remarks, even though the action item didn’t appear on the agenda until later in the meeting. Newman said she was eager to act on the project – she’d been on a tour of residence halls a few years ago, and was familiar with the condition of East Quad. Residence halls are important when recruiting students, she said. Students today are accustomed to a different level of comfort than what she and others her age expected when they were in college. Yet some dorms haven’t changed since she was in college, Newman added. That’s why this is an important project.

Later in the meeting, when regents reached that agenda item, Coleman asked Tim Slottow, UM’s chief financial officer, whether he had any additional information to add. [The East Quad renovation falls under the category of "Finance-Property" in the agenda, an area that Slottow oversees.] He joked that he didn’t want to come between Newman and the vote – Newman then moved the item and the board voted.

Outcome: Regents voted unanimously to approve the East Quad renovation project.

Renovation Projects: North Hall

A $1.6 million renovation to North Hall – which houses the University of Michigan’s Reserve Officer Training Corps (ROTC) programs for the U.S. Army, Navy and Air Force – was on the agenda for approval. The 48,000-square-foot building, located at 1105 N. University, was originally constructed in 1900 to house the university’s homeopathic medical department. The project will be designed by the architectural firm of Smith Group, with construction set to be completed in the winter of 2012.

Andrea Fischer Newman also made the motion to approve this vote, joking that she was moving the item “in honor of Kathy White.” [White, a regent who did not attend the July 21 meeting, is a Lt. Colonel in the U.S. Army reserves and a law instructor at the U.S. Military Academy at West Point.]

Outcome: Regents unanimously approved the North Hall renovation.

New Entrepreneurship Grad Degree Approved

A new University of Michigan joint master’s degree in entrepreneurship – a partnership of the College of Engineering and Ross Business School – was on the agenda for approval. The degree program has been in development for more than two years. According to a staff report on the proposal, the “primary objective of this program is to arm students with the critical multidisciplinary knowledge necessary to create new technology-focused ventures, either as stand-alone entities or within established innovative organizations. Students will learn to create and capture value from novel technologies within the context of entrepreneurship.” [.pdf of full staff report]

The program was developed in partnership with UM’s office of technology transfer. Approval is also required by the Presidents Council, State Universities of Michigan – that’s expected to happen in October. The first students for the degree would be accepted in the fall of 2012.

Coleman had highlighted the new degree in her opening remarks. When the item came up on the agenda, provost Phil Hanlon said he strongly supported Coleman’s comments about the importance of the program.

Outcome: Regents unanimously approved the new joint master’s degree in entrepreneurship.

Land Purchase

Regents were asked to approve a $698,364 purchase of an 0.09-acre of land at 417 S. Division, next to the UM Institute for Social Research. A tentative closing date is set for Aug. 3 – existing leases in the 3,152-square-foot apartment building located on that lot expire in August, according to a staff memo.

A $23 million expansion of ISR’s building on Thompson Street had been approved by the board in April of 2010 – they signed off on the project’s schematic design last July. At their November 2010 meeting, regents approved two other land purchases on South Division related to the ISR project: $919,425 for 439 S. Division St., which included a 3,210-square-foot apartment building; and $805,575 for property at 443 S. Division, where a 6,048-square-foot apartment building is located.

The regents most recently got a report on ISR’s activities at their September 2010 meeting, when director James Jackson gave an overview of ISR’s work.

Outcome: Regents unanimously approved the purchase of 417 S. Division.

Geological Sciences Dept. Renamed

On the July 18 agenda was an item asking regents to give the university’s department of geological sciences a new name: the department of earth and environmental sciences.

According to a staff memo provided to regents, the department “has seen pronounced shifts, coinciding with national and international trends in earth science, toward a heightened emphasis on the societal impact of the field. … The name change more effectively communicates to undergraduates the rich experiential learning opportunities in the department, preparing them for highly adaptable and versatile careers in industry, government, and academia.”

Provost Phil Hanlon briefly reviewed reasons for the change, noting that it’s not the same type of study that regents might recall from their college days. Among other things, the field is increasingly interdisciplinary, he said.

Regent Libby Maynard mentioned that her sister is a geologist. Hanlon said the things that Maynard’s sister studied were likely quite different – topics in the field have expanded significantly.

Outcome: The renaming of the department of geological sciences was unanimously approved by the board.

Faculty Appointments

Regents approved dozens of personnel actions at the meeting – only a few were highlighted. Doug Strong, CEO of the UM Hospitals and Health Centers, was re-appointed for a second five-year term. Marie Lynn Miranda was appointed as dean of the School of Natural Resources and Environment, effective Jan. 1, 2012 through Dec. 31, 2017. Her appointment was announced in June, and she’ll replace outgoing dean Rosina Bierbaum, who will remain on the SNRE faculty.

A few of the other re-appointments of note include:

  • Robert Axelrod, the Mary Ann and Charles R. Walgreen, Jr. Professor for the Study of Human Understanding in the College of Literature, Science, and the Arts, effective Oct. 1, 2011 through Sept. 30, 2016.
  • Jim Baker, Jr., the UM Medical School’s Ruth Dow Doan Professor of Biologic Nanotechnology, effective Sept. 1, 2011 through Aug. 31, 2016.
  • Paul Courant, professor of information at the School of Information, effective Sept. 1, 2011 through Aug. 31, 2016.
  • Howard Hu, chair of the Dept. of Environmental Health Sciences, and NSF International Department Chair of Environmental Health Sciences in the School of Public Health, effective Sept. 1, 2011 through Aug. 31, 2014.

At the July 18 meeting, provost Phil Hanlon also drew attention to the appointments of four faculty members as distinguished professors:

  • Richard Janko, Gerald F. Else Distinguished University Professor of Classical Studies, College of Literature, Science, and the Arts;
  • Gordon L. Kane, Victor F. Weisskopf Distinguished University Professor of Physics, College of Literature, Science, and the Arts;
  • Miriam H. Meisler, Myron Levine Distinguished University Professor of Human Genetics, Medical School;
  • Terry E. Robinson, Elliot S. Valenstein Distinguished University Professor of Psychology and Neuroscience, College of Literature, Science, and the Arts.

Outcome: Without discussion, regents approved appointments, re-appointments and promotions as part of their consent agenda.

Conflict of Interest Disclosures

Regents were asked to sign off on 10 items that required disclosure under the state’s Conflict of Interest statute. The law requires that regents vote on potential conflict-of-interest disclosures related to university staff, faculty or students. Often, the items involve technology licensing agreements or leases.

This month, the list included purchase-of-service, research and licensing agreements, among other items. The disclosures related to the following companies and individuals: Monkey Shavers Productions, Arbor Research Collaborative for Health, Melisa Schuster, Sakti3 Inc., Reveal Design Automation Inc., 3D Biomatrix, Edington Associates, and NanoBio Corp.

The NanoBio item relates to an amendment to the existing licensing agreement between the firm and the university, adding another technology – “nanoemulsion vaccines” – to the agreement. The conflict of interest disclosure arises from the fact that Jim Baker Jr., a UM professor and director of the Michigan Nanotechnology Institute for Medicine and Biological Sciences, is also an owner and director of NanoBio. Earlier in the meeting, regents had also approved Baker’s re-appointment as the Ruth Dow Doan Professor of Biologic Nanotechnology.

There was no discussion on these items, other than a question from regent Andrea Fischer Newman, who wanted to know what a Monkey Shaver was. Tim Slottow, the university’s chief financial officer, told her it’s the name of a video production company.

Outcome: Regents approved all 10 items related to conflict of interest disclosures.

Depression Center Update

Only one presentation was on the agenda for the July 18 meeting: A briefing by John Greden, director of the UM Depression Center.

Greden began by telling regents that ”basically, you got us here.” In 2001, the board had authorized formation of the nation’s first comprehensive depression center – five of the eight current regents were also on the board at that time. [Those regents are Larry Deitch, Libby Maynard, Andrea Fischer Newman, Martin Taylor and Kathy White.] Greden then introduced about a half-dozen people affiliated with the center who’d come to the July 18 meeting, including former Detroit Lions quarterback Eric Hipple, the center’s outreach coordinator.

An estimated one in six people experience clinical depression, Greden said – it’s one of the leading afflictions, along with cardiovascular disease and cancer. To address it, an interdisciplinary, comprehensive center of excellence was proposed with five aims, he said: (1) find people who are suffering as early as possible, (2) develop better treatments, (3) develop strategies to maintain wellness after someone has been successfully treated, (4) overcome depression’s stigma, and (5) build a national network, analogous to the national network of cancer centers.

One of the first steps was to put the word “depression” in the center’s name, which Greden characterized as a bold move. He believed it had achieved the goal of helping to de-stigmatize the illness, and positioned UM as the leading voice in public policy on the issue.

In 2006, the center’s new building opened on Plymouth Road, on the UM Health System’s east medical campus. Greden described it as the antithesis of depression – bright and open, with lots of natural light. The center started with 70 people in related fields on campus. Today, 151 people are involved in the center from over 30 departments campuswide. Greden said he stole a quote from Mary Sue Coleman, who has said that rather than “publish or perish,” the new priority mandate is to “partner or perish.” Greden said, ”I think we’re doing it quite well.”

Greden described a variety of programs at the center. The Prechter Bipolar Genetic Repository – one of the largest collections of DNA samples from people diagnosed with bipolar disorder – is housed at the center. Other efforts include screenings for depression among pregnant mothers, and partnerships with K-12 schools to help identify students suffering from depression – it’s the third leading cause of death among high school students, and the second leading cause among college students, he said. The center has also developed programs for veterans and athletes.

The center has been successful in raising research funds as well as philanthropic donations, Greden said. And they’ve accomplished one of their boldest goals – creating a national network of depression centers (NNDC), with more than 20 members. The UM center houses a data sharing/coordinating center for that network, he said. Now six Canadian centers are interested in joining the NNDC as well, or forming their own network. So the original goal is no longer a dream, Greden said – it’s real, it’s powerful, and Michigan made it come alive.

“We are making a difference, but there’s so much left undone,” Greden told the regents. As the stigma of depression is overcome, that creates a greater demand for treatment, he noted. The need to partner is great, and the center will use its 10th anniversary to build on what’s already been accomplished. ”Thank you for helping us start it,” he said.

Depression Center Update: Regent Discussion

Several regents praised the center and Greden’s vision. Julia Darlow asked what the board could do for the center. Greden said he’d been talking with Ora Pescovitz, CEO of the UM Health System, about the possibility of a fundraising campaign – they’re working through the early stages of that, he said. The regents can be voices of support for the center, he said, and could play pivotal roles in a campaign. He’d be returning with specifics at a later date, he said.

Libby Maynard said there’ve been times when someone she knows has needed help for depression, and she’s been frustrated that there was resistance to seeking treatment. What’s the best way for someone like her, a lay person, to assist a person who’s suffering from depression?

Greden described that as a complicated and important question that’s not easily answered. It’s a situation in which only limited resources are available to meet what seems like unlimited demand, he said. There’s nothing worse than for someone who’s suicidal to call for help, only to be told that there’s a six-week waiting list. “We’re struggling with that,” he said. Depression is an illness, and it can be treated, Greden said. Everyone needs to be open about it – UM can be very proud of its leadership, but there’s still a need to overcome the remaining stigma associated with depression.

Denise Ilitch told Greden the center is making a difference in the community, and she urged him to return to tell the board and the public about how they can contribute to the center’s efforts. She also noted that Larry Deitch, who could not attend the meeting, had wanted her to communicate his support for Greden and the center. Deitch called Greden a visionary and a saint, Ilitch said.

Committee Assignments

Denise Ilitch, who was elected chair of the board at the regents June 16, 2011 meeting, announced assignments for the coming year to the board’s three committees:

  • Personnel, compensation and governance committee: Martin Taylor (chair), Denise Ilitch.
  • Finance, audit and investment committee: Kathy White (chair), Libby Maynard, Andy Richner.
  • Health affairs committee: Julia Darlow (chair), Larry Deitch, Andrea Fischer Newman.
Martin Taylor

Regent Martin Taylor.

One member from each committee gave a relatively brief summary of the meetings they’d held earlier that day – primarily mentioning the topics they’d discussed, and who had attended. The report by Darlow was somewhat longer, focusing not on the committee meeting itself, but rather on the role of the committee and its future work.

She noted that it was formed just a year ago, and she thanked Larry Deitch for chairing it for the past year. The committee was established to focus on the university’s health system – patient revenues account for 45% of all UM operating revenues, she noted. Because of that large scope and the range of issues that the health system faces, committee meetings will likely often involve the entire board, Darlow said.

Some of the issues they’ll tackle include assessing market conditions and forecasting trends as health system administrators develop a strategic plan. Regulatory issues will also be an important topic in the coming year. She commended the staff for the recent 14th place ranking by U.S. News & World Report magazine in “America’s Best Hospitals.” Darlow gave special thanks to Ora Pescovitz, UM executive vice president for medical affairs and CEO of the UM Health System, and Doug Strong, CEO of the UM Hospitals and Health Centers. But she also praised the health system’s nurses, doctors, greeters, aids, billers – everyone throughout the system who cares about patients and makes everything work so well, she said.

Pescovitz also spoke briefly about the U.S. News & World Report ranking, calling it wonderful news and noting that in fact UM had tied with Vanderbilt. UM had also ranked nationally in all 16 specialty areas, she said – of the 4,825 hospitals in country, only 140 get ranked in even one specialty. So to be ranked in all 16 is really significant, Pescovitz said. UM has been named to this ranking for 17 consecutive years.

Regent Andrea Fischer Newman wondered why UM wasn’t first in the ranking. Pescovitz replied that regionally, UM was ranked No. 1 in metro Detroit – in previous years, Washtenaw County hadn’t been considered to be part of the Detroit region, Pescovitz said. UM was the only Michigan institution to make the national ranking.

UM president Mary Sue Coleman described the results as a stunning achievement.

Also related to health system issues, later in the meeting Taylor told his colleagues on the board that because of his position as a director of Blue Cross Blue Shield of Michigan, he’d had a conversation with the university’s general counsel about possible conflicts of interest he might have when issues arise related to UM’s health system. He said he wanted to keep the issue at the forefront and be mindful that he might need to recuse himself from time to time, if that’s deemed appropriate. There was no additional discussion on the topic.

Michigan Student Assembly Report

DeAndree Watson, president of the Michigan Student Assembly, listed several events and activities planned for the coming academic year. [.pdf of full MSA report] Several events are planned for Sept. 5-9, the week before classes begin – including a Day of Reflection to promote student activism, and a Gayz Craze event on Sept. 5 to welcome incoming students in the LGBT (lesbian, gay, bisexual, and transgender) community.

MSA is also hosting an alcohol-free tailgate for the Sept. 10 Michigan-Notre Dame football game, and will participate in a farmers market at the Michigan Union on Sept. 14 to promote healthier meal choices and encourage students to buy locally grown food. Watson also told regents that MSA leaders are working to make the organization more of a service-oriented body, serving as a direct link between the students and the university administration. As part of that, MSA executives will be establishing relationships with their university administrative counterparts, “to represent students in all relevant university initiatives, and to be educated about them,” he said.

Public Commentary

Only one person spoke during public commentary.

Dan Benefiel of Ypsilanti Township, who had addressed the regents at their meeting in June, returned to make additional points about the university’s relationship with China. He said he’s not an enemy of UM – he’s been a fan of the university since he was little. But he’s heard university officials talk about globalism in a positive way, he said, and as a member of the Willow Run Tea Party Caucus and the Washtenaw County Republican Party executive committee, he wanted to go on record as opposing that view.

Dan Benefiel

Dan Benefiel, a member of the Willow Run Tea Party Caucus and the Washtenaw County Republican Party executive committee, spoke during public commentary against UM's involvement with China.

He likened China’s involvement with America as a Trojan Horse, and compared the economic union of the U.S. and the communist nation to the marriage between Peleus and the sea goddess Thetis. China threatens the world economy by buying American debt, stealing industrial and high tech property and trade secrets, violating international law and engaging in cyber terrorism, he said.

But the mindset of many U.S. leaders is that China is our friend, he noted. Under this view, Benefiel said, “China is a sweet cuddly Panda who couldn’t hurt anyone and we must all rethink the ‘us’ vs. ‘them’ attitudes of the past and see the world ‘globally.’ Major industries in the U.S. today no longer see themselves as American first … Shame on all of us who have this attitude!” he said.

In particular, China is targeting university campuses as a way to gain technical information that the U.S. government has enjoined from being exported. “There is coming a day soon when every university president must face the reality that the out-of-state tuition monies and monies from foreign governments and huge government research grants will be endangered if connections are found between foreign entities such as the Chinese military/government and foreign students enrolled who are found to be spying out illicit technologies, Benefiel said. He concluded by saying he wants to prevent the “Trojan Horse of China” from “unleashing its unsavory minions” on America.

When Benefiel’s public commentary concluded, Coleman said, “And with that, we’ll see you in September!” The board does not meet in August.

Present: Mary Sue Coleman (ex officio), Julia Darlow, Denise Ilitch, Olivia (Libby) Maynard, Andrea Fischer Newman, Andrew Richner, Martin Taylor.

Absent: Larry Deitch, Kathy White.

Next board meeting: Thursday, Sept. 15, 2011 at 3 p.m. at the Fleming administration building on UM’s central campus in Ann Arbor. [confirm date]

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UM Regents: Housing Rates Up, Tuition Next http://annarborchronicle.com/2010/05/29/um-regents-housing-rates-up-tuition-next/?utm_source=rss&utm_medium=rss&utm_campaign=um-regents-housing-rates-up-tuition-next http://annarborchronicle.com/2010/05/29/um-regents-housing-rates-up-tuition-next/#comments Sat, 29 May 2010 12:13:25 +0000 Mary Morgan http://annarborchronicle.com/?p=43961 University of Michigan Board of Regents meeting (May 20, 2010): This month, regents met at the UM-Dearborn campus – this is their second month away from Ann Arbor, after holding their April meeting in Grand Rapids. They’ll be back at their regular location in the Fleming administration building next month, when they’ll be voting on the budget for 2010-11, including tuition rates.

Big Ten championship ring on the hand of a UM gynmast

Championship ring on the hand of a UM men's gymnast at the May 20, 2010 board of regents meeting in Dearborn. (Photos by the writer.)

During the May 20 meeting, regents approved a 3% average rate increase for room and board during the 2010-11 academic year in campus residence halls. A double room will increase from $8,924 to $9,192 – an increase of $268. The most expensive room – a single with a private bath – will cost $12,166, up $354. Rates for the Northwood apartment complex on UM’s north campus were also raised an average of 1%.

Three construction projects – including a $17.7 million expansion to the University Hospital emergency department and a new $2.5 million indoor golf practice facility – were approved, with no discussion.

A large part of the meeting consisted of presentations, including an update on how the university’s health system might be affected by recent national health care reform, and a report on the non-traditional education programs task force, which generated some comments from regents.

Several sporting achievements were highlighted at the start of the meeting, as has been the case in other recent months. Most prominently, the men’s gymnastics team attended and were congratulated for their recent NCAA championship win. The celebration included a cake, and regents were given caps – which some wore during the meeting – commemorating the achievement.

Sports-related news not mentioned during the May 20 meeting was the university’s response to allegations that its football program violated NCAA rules – the university announced that response a few days later.

President’s Opening Remarks

UM president Mary Sue Coleman began by introducing the delegation from the Michigan-China University Leadership Forum, who attended the meeting as part of their two-week visit here – they leave on Saturday, May 29. UM’s relationship with China continues to grow, she said, and is an important partnership.

Members of the Michigan-China University Leadership Forum

Xuhong Zhou, leader of the Chinese delegation to the Michigan-China University Leadership Forum, was introduced at the May 20 board of regents meeting on UM's Dearborn campus.

Coleman will be traveling to China in late June and early July, as part of UM’s international initiative with that country. It includes the UM-Shanghai Jiao Tong University Joint Institute, which was established in 2005. [During public commentary time at the end of the meeting, retired UM engineering professor William Kauffman condemned the university's relationship with China, saying that it undermined national security.]

In other remarks, Coleman noted that later in the meeting, the regents would be asked to approve the reappointment of Daniel Little as chancellor of the Dearborn campus, through 2015. He is the longest-serving chancellor in the 50-year history of the campus.

This was the first regents meeting following the May 1 commencement at Michigan Stadium, when President Barack Obama spoke. Coleman said they had received positive feedback about the speech from across the country.

She then introduced UM athletic director David Brandon, who in turn introduced the men’s gymnastics team, describing them as champions in the classroom as well as in athletic competition. He called up head coach Kurt Golder to the podium – when Coleman asked Golder to tell them about the recent NCAA victory, he replied, “Well … we won!” Golder described how Ben Baldus-Strauss had broken his thumb during the competition but had gutted it out. Baldus-Strauss also received the NCAA’s Elite 88 award earlier this year, Golder noted, given for his 3.948 GPA in biochemistry. Members of the team who attended the meeting came to the front of the room with their NCAA trophy, and were given a round of applause.

In noting other UM sports highlights, Coleman remarked on the recent victory by the men’s baseball team against Northwestern, after being down 14 points. “It was the most remarkable performance I have ever seen in baseball!” Coleman said.

Housing Rates Increased

During reports from UM’s executive officers, E. Royster Harper, vice president for student affairs, thanked regents for their “unwavering” support of living/learning environments on campus. She called the proposed 3% average rate increase wise and prudent, saying that 2% would be used for upcoming renovations of Alice Lloyd Hall, with the remaining 1% increase allocated to general operating costs for the housing system.

Later in the meeting, with no discussion, regents approved the following housing rate increases:

Residence Halls           2009-10    2010-11     Increase
Single                    $10,650    $10,970      $320
Double                      8,924      9,192       268
Triple                      7,890      8,126       236
Single (private bath)      11,812     12,166       354
Double (private bath)       9,998     10,298       300
Double (in suite)          10,650     10,970       320
Triple (in suite)           9,998     10,298       300

-

Provided in the meeting packet was comparison data on housing rate increases that occurred for the current academic year at 23 peer institutions, ranked in order of the percentage increase. The packet also contained information about projected rate increases at Big Ten universities for the coming year. Those increases range from a high of 5.4% at Ohio State (projected) to a low of 2.5% at the University of Minnesota (projected). [.pdf of comparative data] Not included was any reference to Eastern Michigan University’s recent decision not to raise room and board, fees or tuition.

In addition, regents approved a 1% average rate increase for family, graduate and undergraduate apartments at the Northwood Community Apartment complex, off of Plymouth Road on UM’s north campus. [.pdf of Northwood housing rates]

Construction Projects: Health, Infrastructure, Sports

Three sizable construction projects were approved by regents during the May 20 meeting with no discussion, totaling $28.9 million.

ER Expansion

Regents approved a $17.7 million expansion of the University Hospital’s emergency department, aimed at reducing overcrowding and patient wait times. In 2009, the hospital’s ER had over 77,000 patient visits.

The project will be done in phases, starting with the renovation of 6,400 square feet of space on level 2 of the Medical Inn Building, which will eventually house the hospital’s dentistry department. On level B1 of the hospital, roughly 22,500 square feet will be renovated to create 26 treatment bays, six enclosed triage rooms, two family consultation rooms, and expanded patient reception areas for the emergency department. In addition, space will be renovated and expanded adjacent to the ER to house the psychiatry emergency service.

The Ann Arbor architecture firm Hobbs + Black Associates will design the project, which is scheduled to be completed by the end of 2012.

Expansion of North Campus Chiller Plant

An $8.7 million project to expand the North Campus chiller plant was approved by regents without discussion. The original plant was built in 2005 and provides chilled water to that part of campus. Compared to having individual building chillers, the university saved an estimated $200,000 in energy costs last year, according to a cover memo on the project. The project would expand the system by 8,500 square feet and add two 1,300-ton chillers.

It will be paid for by funds from the American Recovery and Reinvestment Act of 2009 – federal stimulus dollars. The project will be designed by the UM Department of Architecture, Engineering and Construction, working with the architectural and engineering firms of C2AE and S3 Architecture, with construction completed by the fall of 2011.

Map of proposed UM golf practice facility

A map of the proposed UM golf practice facility – its location is indicated by the yellow oval.

Golf Practice Facility

Regents approved a $2.5 million, 10,000-square-foot indoor golf practice facility, to be located at the end of the UM Golf Course driving range (near the intersection of South Main and Ann Arbor-Saline Road).

The building will include a putting and chipping area, driving bays for the existing driving range, a team gathering space, coaches offices, locker rooms, a conference room, and storage. The project will be designed by Ann Arbor Architects Collaborative.

UM Health System and Health Care Reform

Matt Davis, an associate professor of pediatrics, internal medicine and public policy, briefed regents on how recent health care legislation might affect the university, and specifically the UM Health System (UMHS). He began by showing a photo of President Obama signing the bill into law, surrounded by legislators – including Rep. John Dingell. He noted that the Democrats looked happy – but that there were many Republicans who weren’t so happy. He said complete repeal was unlikely, though there will probably be incremental changes made to the law over time.

Describing it as a massive reform, Davis said that many aspects are unknown. However, there are some key elements that are clear, he said, and they can be summarized like this: “Coverage, coverage, coverage, coverage.”

Two examples of expanded coverage are taking effect this year: 1) extending eligibility for dependents through age 26, and 2) prohibiting insurance companies from setting lifetime limits on coverage and from establishing high-risk pools.

Two other areas of coverage will take effect in 2014, Davis said: 1) expanding Medicaid to cover people with income levels at 133% of the federal poverty line – it’s currently set at 50% in Michigan; and 2) providing subsidies for the purchase of health care plans via health insurance “exchanges.”

Davis highlighted four areas of emphasis as the university’s health system prepares for upcoming changes in 2014.

  • All health insurance exchanges will have an “essential benefits plan,” or EBP. It’s not yet clear what the EBP will entail – the U.S. health and human services secretary will convene an expert group to help define the EBP, and university officials might be a part of that. What would UMHS like to see included in the plan? Is there research that the university could conduct on the issue?
  • Medicaid reimbursements are still determined by states, and in most cases, reimbursements don’t cover costs. The university can work with Michigan legislators to come up with innovative way to restructure reimbursements, Davis said. He also cited another opportunity at the state level – helping develop a new health care provider assessment, which is likely to be passed into law.
  • The U.S. medical profession tends to emphasize subspecialty care, Davis said, and wider health care coverage will likely exacerbate a shortage of primary care providers. UMHS has the opportunity to “widen the door” through outreach, inviting newly covered patients into the system.
  • Davis described the concept of a “value proposition” – the amount of quality care that can be delivered for a specific cost. UMHS researchers are doing innovative work in this area, Davis said, citing research by Mark Fendrick, co-director of UM’s Center for Value-Based Insurance Design.
Chart showing potential financial impact of national health care reform on the UM Health System

Chart showing potential financial impact of national health care reform on the UM Health System, in general terms. (Links to larger image.)

Davis also outlined the possible financial impact of other aspects in the reform package. Negative impacts could come from adjustments to Medicare payment rates, excise taxes on medical devices, drugs and some health plans, and a decrease in charitable care payments from the federal government. UMHS could see benefits from pilot programs and experiments with new care and patient models, and increased funding for preventive care, workforce initiatives and other programs.

Davis also discussed the issue of cost containment, saying there might be opportunities for UMHS to be a model for increasing the quality of care while keeping costs contained.

Davis concluded by noting the complexity of the reform. While challenging, he said the university is well-positioned to take advantage of opportunities that the changes might present.

Health Care Reform: Questions from Regents

Andy Richner asked whether a Medicaid provider assessment was desirable – was it something they really wanted? Davis replied that there might be some financial drain initially, but depending on how it was structured, there might be opportunity to draw down higher reimbursements in the long term.

Saying it sounds like there’s a lot of work to do by 2014, Andrea Fischer Newman asked if there was an organized effort in the state to tackle some of these issues. Davis said that every state will be different, and that in Michigan, the Michigan Health & Hospital Association has been very active.

Newman then asked Cynthia Wilbanks, UM’s vice president for government relations, whether Wilbanks had sufficient resources. [Wilbanks and her staff are the main advocates for UM interests in Lansing.] Wilbanks said she wasn’t prepared to answer that question at this point.

Non-Traditional Education Programs

Derek Collins, associate dean of Literature, Science, & the Arts, gave an update on the Non-traditional Education Programs at UM (NEPU) task force, which he chairs. The group, under the auspices of the provost’s office, was charged with assessing the university’s resources – buildings and other property, as well as people, including alumni and emeriti faculty. The task force was also asked to compile revenue-generating ideas that take advantage of those resources.

Collins said several areas looked promising – his presentation looked in detail at one of those areas: Continuing education. There are over 100 units at UM that offer professional development or enrichment programs, lifelong learning classes or other for-credit or non-credit courses, he said. Examples include executive education at the Ross School of Business, the College of Engineering’s Center for Professional Development, and the Medical School’s continuing education programs.

Katherine White, Teresa Sullivan

UM regent Kathy White, left, and provost Teresa Sullivan at the May 20, 2010 board of regents meeting on the Dearborn campus. The provost's office is overseeing a report on generating revenue via the university's non-traditional education resources.

But there’s no centralized location to get information about these programs, Collins said – UM is one of the only major universities, public or private, that doesn’t have a comprehensive gateway for continuing education. Centralizing this information isn’t just low-hanging fruit, he said, “it’s fruit that’s rotting on the ground.” In addition to making the information easier for people to find – and, presumably, sign up for – it would also make it easier for units within the university to share information and best practices, Collins added. Increased participation in these programs means increased revenue, he noted – with the potential to double the revenue currently brought in by continuing education programs within five years.

In general, over 530 ideas were submitted to the task force, Collins said – 62% of them related to continuing education. Other categories of ideas related to using under-utilized space at the university better – holding concerts in Michigan Stadium, for example – or adding new programs, like Elderhostels.

The task force is recommending that the ideas be categorized according to academic units, then shared with the leaders of those units, Collins said. They believe program development should be stimulated from the ground up, rather than top down from the administration.

Non-Traditional Education: Comments, Questions from Regents

Denise Ilitch asked that regents be given a copy of the inventory of suggestions, saying that it was important to look at ways to generate more revenue, and joking that occasionally regents came up with good ideas, too.

Andrea Fischer Newman said that anything the university can do to centralize information would be very helpful. She pointed out that deans were generally academics, not entrepreneurs – that wasn’t their priority. She asked where the report would go from here. Collins replied that Newman was right, and they should pair deans with people who have business experience. He said the task force is suggesting three phases over the next several years to work toward moving these ideas forward.

Mary Sue Coleman clarified that the provost’s office would be responsible for what happens next. Teresa Sullivan, the current provost who’ll be leaving this summer to become president of the University of Virginia, said there’s a modest amount of money in the upcoming budget that will be used to follow-up on some of the task force recommendations.

Regent Olivia Maynard urged the staff to move ahead – the university can’t afford to have a report sit on the shelf, she said. Collins replied that he shared her urgency and enthusiasm.

Regent Martin Taylor suggested bringing another update to the regents in six months. Unless someone is driving the effort, they risk losing it, he said.

Michigan Student Assembly Report

Chris Armstrong gave his first report as president of the Michigan Student Assembly – he was elected in March, and had been introduced at the April regents meeting in Grand Rapids.

Among the items in his report, Armstrong said that MSA would be focusing on preparing for fall voter registration on campus. They’ll have voter registration boxes across campus, and are working on a website where students can register online. Thousands of students were registered during the 2008 election, he said, and they hope to surpass those numbers.

Armstrong noted that he would be in Washington D.C. this summer for an internship, so he wouldn’t be able to attend the regents’ June meeting. As they prepare to set tuition rates, he urged regents to keep accessibility in mind. If there is a tuition increase, he said, there should also be an increase in available financial aid.

Public Commentary

Six people spoke during public commentary at the end of the meeting.

Douglas Smith addressed the regents about a situation involving the UM Department of Public Safety and Andrei Borisov, saying it “illustrates not only that shared governance by the faculty has been subverted by the UM administration, but that they are not shy about using their private police force to punish whistleblowers and suppress dissent.” Smith has spoken at previous board meetings – most recently in September and November of 2009 – expressing similar concerns stemming from a chain of events that led to Borisov’s dismissal as a research assistant professor in the university’s pediatrics department, and a subsequent confrontation with DPS officers. [A recent post on Insider Higher Education and an article in the Michigan Daily describe these issues in greater detail.]

William Kauffman, a retired UM engineering professor, told the regents that UM’s College of Engineering has declined significantly in its ability to educate students. He noted that the last astronaut from the university had graduated in 1964. He described it as a “cesspool of corruption,” with widespread fraud, plagiarism and falsification of records. Kauffman also expressed serious concerns about UM’s relationship with China, saying that the power and industry grab by the Chinese was threatening U.S. national security. He also noted that people from Iran had studied at UM, and now that country had nuclear capabilities. Kauffman passed out a packet of material that included a copy of an email in which he recommended that UM not be re-accredited.

Cardi DeMonaco Jr., a student at UM-Dearborn, addressed the topic of tuition increases. He said he understood that tuition will likely increase again this year. At UM-Dearborn, he said, tuition increases had risen on average 8.2% over the past five years. He wondered why Eastern Michigan University could afford to freeze its tuition, but UM couldn’t, and he urged regents to follow EMU’s lead. Education is a right, DeMonaco said, but soon only the rich will be able to afford it. He also noted that books at the university bookstore are more expensive than they need to be, citing an example of a used textbook for a matrix algebra class costing $125 at the bookstore, but available online for $19.

After DeMonaco’s remarks, regent Denise Ilitch thanked him, saying she had heard everything he’d said. The board would continue to be very focused and concerned about rising tuition, she said.

Bonnie Holloran

Bonnie Halloran, president of the Lecturers' Employees Organization (LEO), spoke to regents during public commentary.

Bonnie Halloran, a lecturer at the UM-Dearborn campus and president of the Lecturers Employee Organization, discussed the issue of contract negotiations between the administration and LEO. She asked the regents to make the lecturers whole in terms of benefits, and to support a move toward more equitable pay for lecturers. She noted that lecturers play a critical role in the classroom. Halloran also raised the issue of the recent non-reappointment of Kirsten Herold, the union’s vice president who has taught in the English department for 18 years. Calling it intimidation, Halloran urged the regents to intervene on behalf of Herold’s reinstatement. [At the regents April meeting, LEO's lead negotiator, Elizabeth Axelson, had raised similar concerns.]

Responding to Halloran, regent Martin Taylor said they understood the importance of lecturers, but that it was inappropriate to ask them to intervene regarding Herold. The correct avenue is to file a grievance, he said. Taylor also said he hoped that LEO could “step up the pace” of negotiations. Halloran replied that they are in the process of filing a grievance, and that they’re working very hard at the bargaining table.

Donald Anderson, a professor emeritus of political science and president of the UM-Dearborn Academy of Retired Faculty and Staff, spoke about health benefits being evaluated by the university’s committee on retiree health benefits. The committee will present its recommendations to the regents in June. Anderson urged regents to phase in changes over time, taking into account initial contract commitments, length of service and hardships that might result from sudden changes to benefits. Regents should be sensitive to the fragile financial situation of many retirees, he said. He questioned the goal of the committee, which is to bring down retiree health costs to the average or slightly above average of UM’s peer institutions. Was this really a goal worthy of the university? The better question is this, he said: What’s a fair, equitable way to contain retiree health care costs while recognizing the contributions of retirees who loyally served the university.

Saying she was speaking at the UM-Dearborn meeting because she’d been banned from the Ann Arbor campus, Linda Martinson said she’d been forced to take action against the university because of her wrongful expulsion as a student of the School of Nursing. Following her expulsion, Martinson was issued a no-trespass order – a packet that Martinson provided to regents included a copy of the order issued to her in 2008, which stated that her behavior had been perceived as “threatening and disruptive.” Martinson told regents that UM is seriously lacking institutional integrity. [Martinson had filed three lawsuits against the university in state circuit court – those cases were dismissed by agreement of both parties after she filed a separate federal lawsuit in September 2009. She's asking that the university void her expulsion, and is also seeking damages and attorney fees.]

Martinson continued speaking after the allotted three-minute period for her public commentary ended. After Mary Sue Coleman asked her to wrap up her remarks several times, a member of the university’s security staff came to the front of the room. Martinson continued for a couple more minutes before concluding her statement, and the meeting was adjourned.

Present: Mary Sue Coleman (ex officio), Julia Darlow, Denise Ilitch, Olivia Maynard, Andrea Fischer Newman, Andy Richner, Martin Taylor, Kathy White.

Absent: Larry Deitch

Next board meeting: Thursday, June 17, 2010 at 3 p.m. in the Fleming Administration Building, 503 Thompson St., Ann Arbor. [confirm date]

Some members of the UM men's gymnastics team, with their 2010 NCAA championship trophy, at the May 20, 2010 UM board of regents meeting in Dearborn.

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UM Plans Research Hub at Former Pfizer Site http://annarborchronicle.com/2008/12/18/um-plans-research-hub-at-former-pfizer-site/?utm_source=rss&utm_medium=rss&utm_campaign=um-plans-research-hub-at-former-pfizer-site http://annarborchronicle.com/2008/12/18/um-plans-research-hub-at-former-pfizer-site/#comments Fri, 19 Dec 2008 04:07:27 +0000 Mary Morgan http://annarborchronicle.com/?p=10196 Pfizer bought by UM: Snow Angel

Pfizer's Plymouth Road facility is largely vacated, except for the occasional snow angel.

Word about the University of Michigan’s plans to buy the former Pfizer research site had leaked out much earlier in the day, but UM regents waited until the end of their regular Thursday afternoon meeting before making it formal: The university will spend $108 million to buy the roughly 174-acre Plymouth Road complex, with plans to transform it into a major medical and scientific research hub. In the long term, university officials hope to add 2,000 jobs to the local economy over 10 years. But in the short term, the deal will take millions of dollars off the tax rolls for local governments at a time when they’re already anticipating budget shortfalls.

Comments made by regents and UM executives made it clear that they’d been considering this deal for some time. Local officials were informed either last night or this morning. Several interviewed by The Chronicle said they were concerned about the added financial strain – Pfizer paid a total of $12.5 million in taxes this year to various local entities, including about $4 million to Ann Arbor alone – but they were also optimistic that the UM purchase ultimately would help the local economy.

Details of the deal

UM will pay for the property – which includes nearly 2 million square feet of lab and office space in 30 buildings – primarily from reserves of the UM Health System, particularly funds set aside by the Medical School. A smaller portion of additional funding will come from investment income typically used for capital projects. The deal is expected to close sometime this summer. It’s the university’s largest property purchase since buying 300 acres for north campus in 1950.

The university has a general vision for the area, but hasn’t decided exactly what kinds of work will take place there, said UM President Mary Sue Coleman. The property, located on the city’s north side, is surrounded by land that’s part of UM’s north campus, which includes its College of Engineering. Its massive medical complex is just south of that area. Broadly, the university will use the Pfizer complex to provide research space, possibly for cell biology, stem cell, nanotechnology and other types of medical research. UM might move entire institutes or research centers there, but precise plans are expected to take 12-18 months to develop.

Bob Kelch, CEO of the UM Health System, speaks to reporters about the Pfizer property purchase.

Bob Kelch, CEO of the UM Health System, speaks to reporters about the Pfizer property purchase.

Bob Kelch, CEO of the UM Health System and executive vice president for medical affairs, said the university has never had sufficient research space, a shortage that has hurt research productivity as well as recruitment. The Pfizer space will allow UM to develop more collaborative efforts, he said, both between different units within the university – such as engineering and medicine – and between the university and the private sector.

Several university officials hammered on the theme of economic development, saying that they were committed to helping the local, regional and state economy. “We’re living at the center of the economic contraction,” said Steve Forrest, vice president for research. Buying the Pfizer site sends a powerful message that the university is committed to the state, he said, and that it’s growing. Forrest added that UM plans to “aggressively” increase its partnerships with industry.

Regent Larry Deitch gave a bit of historical context for the deal, reminding the group that UM had sold Pfizer 55 acres of property for about $27 million in 2002, when Lee Bollinger was president. The university initially wasn’t interested in selling the land, Deitch said, but did so when they were told that if they didn’t, Pfizer would leave. “So we sold them the land, and they left,” he joked. But in crafting that deal, UM’s legal staff had added a clause that let UM retain rights to the land if Pfizer departed, as they eventually did. Deitch praised the staff for their foresight in that decision.

County commissioner Mark Ouimet, Ann Arbor city councilmembers Leigh Greden and Margie Teall, and city administrator Roger Fraser watch as the regents discuss their decision to buy Pfizer property.

From left: Washtenaw County commissioner Mark Ouimet, Ann Arbor city councilmembers Leigh Greden and Margie Teall, and city administrator Roger Fraser watch as the regents discuss their decision to buy Pfizer property.

Local impact

Because the deal won’t likely close until mid-2009, Pfizer will still pay local taxes on the site next year. That gives local officials some breathing room as they face the loss of their largest taxpayer. (As a public institution, UM does not pay taxes.)

Of the $12.5 million in total local taxes paid by Pfizer in 2008, about $1.3 million went to county coffers. Washtenaw County prepares its budgets on a two-year cycle, and will begin looking at the 2010-11 budget early next year. The county had already projected lower revenues from a weak housing market that has dropped property taxes, “so now this is added to the mix,” said county administrator Bob Guenzel, who attended Thursday’s regents meeting. Pfizer taxes account for about 1% of the county’s $107 million annual budget.

Yet Guenzel said despite the challenge, he has confidence that UM is making economic development a priority, and that the purchase will pay off for the community in the long run. Guenzel also serves on the board of Ann Arbor Spark, the local economic development agency that’s been helping Pfizer shop the site around to potential buyers. He said he was informed of the purchase on Thursday morning, when he got a phone call from Jim Kosteva, UM’s director of community relations.

John Hieftje, Ann Arbor’s mayor, recently had coffee with Coleman but didn’t hear about the Pfizer deal until she called him Wednesday night. In 2008, taxes from Pfizer represented 4.85% of the total property taxes collected by the city. But Hieftje, too, believes the purchase will be good for the overall economy, especially if the jobs that UM hopes to add actually materialize.

UM President Mary Sue Coleman answers a reporters question about the Pfizer property deal.

UM President Mary Sue Coleman answers a reporter's question about the Pfizer property deal.

Responding to a question from a Michigan Radio reporter, Coleman said the university would have been happy if another buyer had come forward for the property. When Pfizer announced it was closing its Ann Arbor operation two years ago, she had been hesitant to pursue the property, in part because of concerns over the tax implications for the community. But the economy changed over that period, she said, making other buyers scarce. And as the university looked more closely at the property, they realized it was a better fit than they’d originally envisioned.

As the university’s research agenda and capacity increases due to the expansion into Pfizer’s site, they expect to hire more faculty, post-doctorate researchers and research staff, Coleman said. Those higher-paying jobs will benefit the economy, she said, noting that the same is true for jobs created as the result of partnerships with the private sector.

“And if we really cram people in there,” Coleman said, “maybe we can hire 4,000 people.”

Media coverage

Regents meetings normally don’t draw a lot of media attention, but UM put out a press release Thursday morning saying there’d be a “major announcement” at the meeting, and several news outlets, including The Chronicle, reported that the purchase of Pfizer’s research campus was on the table. So Thursday’s meeting was well attended by print, radio and TV reporters.

During the meeting, Regent Andi Fischer Newman apologized to Ann Arbor News reporter Dave Gershman, saying that he’d emailed her on Wednesday asking if the announcement was on Thursday’s agenda and she told him no – but what she didn’t say was “not at this time.”

Other news reports: Ann Arbor News, Ann Arbor Business Review, Detroit Free Press, Detroit News, Crain’s Detroit Business, Michigan Radio

The mini media mob at Thursdays UM regents meeting.

The media mini-mob at Thursday's UM regents meeting.

Ann Arbor News reporter Stefanie Murray interviews Mike Finney, CEO of Ann Arbor Spark, in the UM Regents room. News photographer Lon Horwedel is videotaping the interview.

Ann Arbor News reporter Stefanie Murray interviews Mike Finney, CEO of Ann Arbor Spark, in the UM Regents room on Thursday. News photographer Lon Horwedel is videotaping the interview.

Reporters xx from the Detroit News and xx from Crains Detroit Business work on stories following the UM regents meeting on Thursday.

Reporters Marisa Schultz from the Detroit News and Ryan Beene from Crain's Detroit Business work on stories following the UM regents meeting on Thursday.

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