Resourcing and Five Year Financial Plan
Anticipated declines in clinical reimbursement, projected decreases in indirect medical education funding, and constrained NIH budgets require us to generate many of the resources for investing in the strategic plan from current operations and new revenue sources, such as technology transfer and philanthropy. Funding for this plan will therefore require a sustained, Penn Medicine-wide commitment to operating-efficiency and cost reduction, resource re-allocation, enhanced funds-flow management, maintenance of clinical margins, maximization of returns from research investments, and enhanced philanthropy.
Rethinking our operating model and the policies that guide it will begin immediately so that full-year gains for FY2014 can be realized and reinvested in strategic priorities. An enhanced degree of openness and dialogue among faculty and administrative leaders will be necessary to achieve our goals.
The principles of the financial plan necessary to implement our strategic plan include:
- Penn Medicine will function as an integrated entity with a focus on the financial health of the entire organization.
- Each entity within Penn Medicine will be held to high standards of peer performance and expected to operate as efficiently as possible.
- Penn Medicine needs to maintain a balanced budget while creating sufficient reserves to respond to strategic opportunities and challenges.
- Significant financial decisions with potential for consequences throughout Penn Medicine will be reviewed with all involved parties before implementation.
- Capital decisions will be made at the Penn Medicine level, ensuring careful attention to balance among our core missions.
We are confident that Penn Medicine can remain in financial balance and achieve its strategic goals by continuing to apply the fiscal discipline that has been its hallmark over the past decade.
