M.D. ANDERSON IS NOW A VICTIM OF THE ECONOMY!

DO YOU THINK HIRING FREEZES AND OTHER ACTIONS WILL AFFECT THE QUALITY OF CARE?

Apparently, there are going to be some serious cuts over at MD Anderson Cancer Center. Here's the latest information released from the hospital:

The economic situation at M. D. Anderson was summarized in the presidential address on March 30. Growth in expenses has outpaced growth in revenues for six months, and projections indicate that, without intervention, the operating margin will be severely reduced and cash flow will be threatened by the end of this fiscal year. The main causes of this situation – an increase in indigent care and bad debt, as well as a reduction in cash philanthropy – are beyond our control. We can and must address those areas that are within our control.

We must reduce the institution's expenses by 10%. While all of the programs and activities at M. D. Anderson add value, we must reduce or eliminate those which are less critical to our mission. As personnel costs account for 60% of all M. D. Anderson expenses, a reduction in the number of currently filled positions is a necessary component to meet that goal. However, there is great variation across operating units in size and function, so the targeted reductions in positions and programs will vary. The quality and safety of patient care will not be jeopardized.

We want to emphasize that this is not an event; it is a process. Some of the changes we undertake must happen promptly; others will require careful analysis using the time-tested performance improvement tools we have in place. The short term outcome will be rebalancing our income and expenses. The long term outcome will be improving the value of the services we deliver and the research we perform at M. D. Anderson – where the value equation is the quality (outcomes) divided by the cost over time.