Although faculty attendance was excellent at today's faculty meeting some could not be present and I'd like to present a brief summary of our discussions. Next year's budget will be more difficult to meet than at any time in the department's history and will require significant changes in the department. The slide below tells the story of our fiscal problems:

Consistent decreases in our SOM funding and dramatic increases in Overhead Cost Allocation charges have resulted in a roughly $1M budget loss for next year. We plan to deal with this in the following way:

1. All non-bargaining unit employees of the department will have a 4% pay cut on their 2008 salary base. Clinical performance pay (Z2) will not be cut.

2. The psychiatry LLC for billing will be closed. Its responsibilities will be tranferred to UMG. Preauthorization functions will stay in the department.

3. Two managerial positions will be eliminated.

4. We will not be able to restore the physician complement on 1 NW to 3 physicians and will run the unit with two psychiatrists.

5. The child fellowship program will be reduced from 3 to 2 stipends/year

6. We will cancel plans to hire an additional geropsychiatrist.

7. There will be some losses in faculty FTE. I will speak personally with those affected.

These are drastic changes and the discussion reflect that. I welcome your questions and comments on this blog and will try to reply in a timely fashion.

George A. Keepers, M.D., Chair