MARCH 2008: AROUND THE STATE
OHSU cuts
deeply after cap decision
PORTLAND Oregon
Health & Science University is planning for an estimated
$150 million in cuts over the next five years following an
Oregon Supreme Court ruling that eliminated a $200,000
malpractice liability cap. The cap protected state agencies and
OHSU from open-ended damage awards. It doesn’t appear to
be coming back anytime soon.
OHSU was already reeling from $50 million in losses from
research and education costs when the Supreme Court handed down
its decision in December. In January, the university,
Portland’s largest private employer, announced cutbacks.
It will significantly reduce unfunded research in the medicine,
dentistry and nursing schools and close clinics and education
programs around the state. It also will raise tuition 10% to
25%, reduce benefits for new employees and cut as many as 300
jobs.
Anything that’s losing money, says OHSU spokesman Jim
Newman, is being looked at. One example: closing or
outsourcing the March Wellness Center at South Waterfront,
which lost $1 million last year. However, a new educational
campus is still slated to be built there in the next few
years.
Because of the brevity of this year’s special
legislative session, lawmakers will not be looking at
reinstating a cap. Even if they did, any new limit to
liabilities will still have to be tested in court, says
Newman.
“We see this as a new reality for us for next few
years,” he says.
ABRAHAM HYATT
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