February 9, 2005

By Fariss Samarrai

The Medical Center Operating Board held its third meeting of the fiscal year at the Rotunda Board Room on Feb. 3. R. Edward Howell, vice president and chief executive officer of the Medical Center, reported that the financial situation of the center remains strong with a high volume of patients. He added that the hospital is increasing its number of beds for a growing number of inpatients, and that there is an increased flow of operating room patients.

The board passed a resolution to allow the merger of Virginia Ambulatory Surgery Inc. (VASI) into U.Va.

Last July, the University acquired VASI on behalf of the Medical Center from the U.Va. Health Services Foundation. VASI is a Virginia nonstock corporation with the University as a sole member. It has no board of directors.

VASI was retained as a separate entity in order to provide for a smooth transition of the surgery operations and management to the Medical Center. The Medical Center contracted with the Health Services Foundation to manage VASI on an interim basis. Because the Medical Center wants to fully integrate the operations of the surgery center into the Medical Center and seek “provider-based” status for the surgery center under Medicare laws and regulations, VASI could not continue as a separate corporation. Therefore, Medical Center officials requested that VASI be merged into U.Va.

Larry L. Fitzgerald, Medical Center chief financial officer, reported that the first five months of fiscal year 2004-2005 had an operating margin of 5.8 percent — higher than the goal of 4.6 percent. He said the Medical Center continues to achieve its financial goals.

Medical School Dean Dr. Arthur “Tim” Garson Jr. introduced Dr. Michael D. Dake, the new chairman of radiology, who recently joined the department from Stanford University. Garson said the new chairman will expand on the achievements of the department and help lead it into “a new era of molecular medicine.” Dake noted that the field of radiology is “exploding” with new nonsurgical techniques that are making high-quality medicine less invasive.