Mr. Speaker:
I am directed to inform you that the Senate has
Passed and asks concurrence in:
Senate Bill 55
__________________
Senate Bill 55
Relating to: state finances and appropriations, constituting the executive budget act of the 2001 legislature.
By
joint committee on Finance, by request of Governor Scott McCallum.
To committee on Rules.
__________________
Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
June 21, 2001
To the Honorable, the Legislature:
As required by s.
13.94(1)(o), Wis. Stats., we have completed an evaluation of the implementation and operating agreements between the University of Wisconsin (UW) and the UW Hospital and Clinics Authority. The Authority is an independent, nonprofit entity established by the Legislature in 1996 to operate the 536-bed hospital and a number of clinics on the UW-Madison campus, as well as other outpatient clinics and facilities in the Madison area. In fiscal year (FY) 1999-2000, the Authority had revenue of $400.0 million and operating expenses of $395.0 million; in September 2000, it employed 4,263 full-time equivalent staff.
The Authority was created to allow increased management flexibility in hospital operations and greater competitiveness in a changing heath care environment. Although it has not engaged in networking activities to the extent that had been envisioned at the time it was established, it has established relationships with a number of health care entities. It has also used the $106.5 million in bonding authority authorized by the Legislature to engage in an aggressive building program, including construction of two outpatient clinics in Madison.
The Authority's financial performance, like that of other academic medical centers, has been mixed. Revenue in excess of expenses declined from $13.8 million in FY 1996-97, the Authority's first year of operation, to $5.0 million in FY 1999-2000; however, it increased during the first ten months of FY 2000-01.
The Authority is generally fulfilling its statutory mission of delivering comprehensive, high-quality health care, including charity care; providing medical instruction; sponsoring and supporting health care research; and providing medical outreach services statewide. In FY 1999-2000, the Authority transferred $16.3 million to UW medical, nursing, and pharmacy schools and spent directly another $14.7 million in support of medical education.
We appreciate the courtesy and cooperation extended to us by the Authority. The Authority's response is Appendix 5.
Respectfully submitted,
Janice Mueller
State Auditor
__________________
Representative Kedzie moved that the Assembly stand adjourned until 10:00 A.M. on Tuesday, June 26.
The question was: Shall the Assembly stand adjourned?
Motion carried.
The Assembly stood adjourned.
10:31 A.M.
