Testimony before the Legislative Post Audit Committee

In Response to the Performance Audit Report:

“KU Medical Center and KU Hospital: Reviewing SelectedFinancial Issues”

By Barbara Atkinson, MD

Executive Vice Chancellor, University of KansasMedicalCenter and

Executive Dean, University of KansasSchool of Medicine

October 30, 2007

Room 519-S Kansas Statehouse

Chair Mast, Vice Chair Jordan and Members of the Post Audit Committee:

The results reported in this audit are significant because they confirm that the University of Kansas Medical Center has been a good steward of state funds and has honored its commitments. In our response to this audit we simply concurred with the findings of the auditors. Consequently, my response to you will be brief.

As you know, the University of Kansas has articulated as its top priority the effort to build a nationally recognized cancer center for the citizens of our state and this region. Essential to our success is the five million dollar annual appropriation the state has invested in this effort. The audit report confirms that we are investing these funds as we told you we would.

The audit also reports that the KU Medical Center is financially sound and that we have adequate cash flow to honor financial commitments made. There are some who would assert that the medical center is financially insolvent and that our attempts to forge new affiliations with major research hospitals are driven by a desperate need for an infusion of cash. Nothing could be farther from the truth and I hope the results of this audit will put such false allegations to bed.

The audit also addresses a number of issues related to the University of Kansas Hospital. Under the leadership of Bob Page, the KU Hospital and the KU Medical Center are forging a new relationship. I am hopeful that we will build on the success of our institutions and work closely together to allocate resources to obtain the best benefit for Kansans in the future. We share the same vision and Bob and I are both passionately committed to leading our organizations as part of a single, high-performance, academic medical center.

I can assure you that the leadership, faculty and staff of the KU Medical Center will continue to work to make certain that Kansans receive at least a dollar of value for every dollar they invest in their medical center. We take seriously our obligation to work efficiently as we seek to meet our mission of education, research, service, outreach and patient care. And furthermore, we understand the important role we play in both improving human health and in driving the health of our economy.

I appreciate the support the legislature has provided the medical center and I am hopeful that the information contained in this audit will reassure you that funds allocated to the medical center are investments that produce high returns for the citizens of Kansas.

I look forward to responding to any questions you might have.

Respectfully submitted,

Barbara Atkinson, MD

1