By implementing strategic operational adjustments Vanderbilt University Medical Center (VUMC) continues to demonstrate resilience and adaptability as health care delivery and scientific research undergoes significant transformation nationwide, said Jeff Balser, MD, PhD, President and CEO of VUMC and Dean of Vanderbilt University School of Medicine, during the spring Leadership Assembly.
As the nation’s fifth largest recipient of National Institutes of Health (NIH) funding and Tennessee’s largest provider of Medicaid services (TennCare), VUMC faces substantial challenges from potential cuts to these government programs. VUMC currently provides over $1 billion annually in community benefits, ranging from medical training to uncompensated care.
Through cost savings initiatives that began earlier this year, the Medical Center is positioning itself to thrive despite reductions in research funding from the NIH and changes impacting reimbursements from Medicare and Medicaid.
“While these national economic forces are impacting us, VUMC will continue to be a bedrock of strength. Our core missions are vital to the wellbeing of this region and our country, and we will continue to have tremendous impact,” said Balser.
Protecting patient care while adapting operations
Cost reductions are geared to support clinical services by looking for efficiencies in other operational areas, said Balser. While research personnel may experience changes in responsibilities or compensation, and some research positions have been eliminated, staff delivering direct patient care will not be affected by these measures.
VUMC continues to hire clinical and frontline staff ahead of the opening of the 15-level, 470,000-square-foot Jim Ayers Tower, which is set to open its seventh floor in October.
“We are in a tumultuous time, and I don’t want to underplay just how difficult this time is. I think it’s important for people to understand that circumstances absolutely do not stay the same and that change is always present. You’re much better off focusing on the things that are under your control. You need to be adaptable,” said C. Wright Pinson, MBA, MD, in his final Leadership Assembly as Deputy CEO and Chief Health System Officer.
Ongoing assessment of legislative developments
VUMC’s spending reductions are an immediate response to current conditions and further adjustments could be possible pending congressional budget decisions expected later this summer, said Balser.
Despite the headwinds, VUMC remains committed to its missions of patient care, training and biomedical research. The institution continues to be recognized for its leadership in specialized care services, including operating the world’s largest heart transplant program and the nation’s third-largest transplant center.
“Our success will depend upon many things, but two are fundamental: remaining focused on the people we serve and sustaining our trust and support for one another. What we are experiencing in health care today feels in some ways like COVID-19. Those were challenging times with a great deal of uncertainty, and we will again withstand these headwinds, while sustaining our missions and our culture,” said Balser.
5 Pillar Award to honor Pinson
Pinson is the recipient of this term’s Five Pillar Leader Award — VUMC’s top leadership recognition — and going forward the accolade will be named the C. Wright Pinson Award to honor his leadership and commitment to medicine, training and working toward a stronger future, said Balser.
“Our job as a leader and administrator is to create the environment and bring together the resources, but most importantly, to paint a picture of the future that people can wrap their heads around, be inspired by, that people have confidence in,” said Pinson.
