TRUSTEES

The Ohio State Board of Trustees held its monthly meeting Nov. 7 in Pfahl Hall. Ohio State is governed by a board of 11 trustees (including two nonvoting student members) who are responsible for oversight of academic programs, budgets and general administration, and employment of faculty and staff. The governor annually appoints one voting member to a nine-year term and one nonvoting student member to a two-year term.

OSU Health System names interim CEO

By DAVID CRAWFORD, Medical Center Communications

Peter Geier has been named interim chief executive of Ohio State's Health System to succeed R. Reed Fraley, who is retiring in January.

Fred Sanfilippo, senior vice president for health sciences, dean of Ohio State's College of Medicine and Public Health and CEO of the OSU Medical Center, announced the appointment of Geier as interim CEO for the Health System and vice president for health services after approval from the Ohio State Board of Trustees at the Nov. 7 meeting. Geier, currently senior associate vice president for health sciences business and administration, has served on the Medical Center's leadership team since 2001 as chief operating officer.

As former president and chief operating officer with Huntington Bancshares Incorporated, Geier is familiar with leading a large, multifaceted service organization. "Pete's experience, knowledge and ability to balance business skills with providing high-quality services is a basic necessity in today's health care world," Sanfilippo said.

"Having worked closely with our physicians on major projects such as the formation of our integrated faculty practice plan, OSU Physicians, and planning for the Ross Heart Hospital, Pete was the top recommended choice for the interim position by the physician and health system leadership. Although not a candidate for the permanent position, we are fortunate that Pete is able to step in while we conduct a comprehensive search," he added.

Sanfilippo also announced that the search committee for the permanent position will be chaired by Chris Ellison, vice chair for clinical affairs and chair of the department of surgery, with the assistance of an executive search firm.

Sanfilippo said the search will encompass several internal as well as external candidates. "We want to find a leader who can best help us in continuing to build on the success of the Health System and one who recognizes the role and potential of the Health System within the academic medical center," Sanfilippo said.

Fraley has spent the last 14 years in charge of OSU's Health System, which includes University Hospital, University Hospital East, The James Cancer Hospital and Solove Research Institute, OSU Harding Hospital and a primary care network comprising more than 30 sites throughout central Ohio.

First-quarter budget report shows positive results

Ohio State will continue to explore ways to diversify its financial resources and behave more entrepreneurially to reduce the reliance on state funds, which are becoming less predictable and less stable, according to Bill Shkurti, senior vice president for business and finance.

Shkurti presented a first-quarter budget report -- the first in a series of quarterly financial reports for fiscal year 2004 -- to the university's Board of Trustees at its Nov. 7 meeting.

Shkurti told trustees that summer and fall quarter enrollment figures are strong, with total enrollment up 0.4 percent. At the same time, the state budget picture continues to be somewhat uncertain. The university's Health System had a good year financially in fiscal year 2003, Shkurti said, and first quarter results for fiscal year 2004 are positive, but below budget targets. During fiscal year 2003, patient revenues grew by $120 million or 16.6 percent due to increased patient volume and rate increases for selected services, and the Health System improved its net operations by $3.7 million over fiscal year 2002 to $8.1 million.

Other areas of Columbus campus finances are meeting expectations, including research and private giving, Shkurti said. After one quarter, new research awards are up 6.1 percent compared to the first quarter of fiscal year 2003. Private giving increased by $15.8 million or 8.8 percent over fiscal year 2002. Athletics achieved a net operating surplus of $41,000 on income of $88 million after increasing general and capital reserves by $4.5 million. Transportation and parking services had a cash deficit at the end of fiscal year 2003 of less than $100,000 compared to $2.4 million a year ago.

Shkurti said major auxiliaries did well last year and expect to do well this year, with the demand for university housing exceeding the supply.

Regional campus finances are stable, but showing decreased enrollments compared to projections for fiscal year 2004 at all but the Mansfield campus.

No board action was requested at this time.

Deficit report

Trustees also received an annual deficit report from Shkurti, a practice initiated in 1993. The cumulative total of internal operating deficits of $21.3 million is within the university's target of no more than 1 percent of annual revenues, Shkurti said.

The two largest deficits from prior years (enrollment services and human cancer genetics) are being addressed according to plan. The largest new deficits, health science administration and technology partnership/technology licensing, have submitted reduction plans.

All areas with existing deficits have submitted or will shortly submit deficit reduction plans and are being monitored.

Endowed funds named

Ohio State's Board of Trustees established 10 new named endowed funds, totaling $542,534, and accepted 281 new research grants and contracts, totaling $37.6 million, awarded to the university during September 2003, at its Nov. 7 meeting. The following named funds were accepted:

• The Ethel Roe Caulkins and Earl F. Caulkins Scholarship Fund, $250,065.

• Dr. Kate Riffee Fund for Human Value, $100,000.

• The Ray A. and Linda S. Miller Alpha Zeta Partners Leadership Fund, $25,464.

• The Ronald S. Erkis Family Athletic Scholarship Fund, $25,167.

• Michael A. Bricker, DVM Equine Scholarship Fund, $25,000.

• The Andy Hague Endowed Scholarship Fund, $25,000.

• The Margaret F. McDonald Scholarship Fund in Agricultural Economics, $25,000.

• The William J. and Lois E. Robison Endowment Fund, $25,000.

• The River Road Hotel Corporation Endowment Fund for Cancer Research, $25,000.

• The Jerry J. Halterman Endowment Fund at Ohio State ATI, $16,838.

Fund names changed

• The Martha Brian Fellowship in Journalism is now the Martha Brian Fellowship Fund in Journalism.

• The Edgar W. Ingram Minority Assistance Scholarship Fund is now the Edgar W. Ingram Scholarship Fund.

• The Dr. Harry F. Bartels Veterinary Practice Management Fund is now the Dr. Harry F. and Eltha J. Bartels Veterinary Practice Management Fund.

• The Frederick Ives Chair's Scholarship Fund is now the Frederick W. Ives Chair's Scholarship Fund.

Personnel actions

Appointed to the Board of Harding Hospital, effective Dec. 1, were:

• Dr. Richard Harding, a three-year term as a citizen member.

• Dr. Sul R. Thorward, a three-year term as a citizen member.

Chair reappointments

• Mary Jo Welker has been reappointed chair of the Department of Family Medicine.

• Thomas N. Hansen has been reappointed chair of the Department of Pediatrics.

Construction approved

Trustees authorized the university to select qualified architectural/engineering firms for the following projects:

• Installation of directional signs in and around the Medical Center campus. Estimated project cost is $360,000 with funding to be provided by Ross Heart Hospital bond proceeds and the Ohio State Medical Center.

• Renovation and expansion of the Woody Hayes Athletic Center and Varsity Tennis Courts. Estimated project cost is $20 million to $22 million with funding to be provided by Athletic Department development funds.

Trustees authorized the university to request construction bids for the following projects:

• Renovation and modernization of the Drinko Hall Law Courtroom. Construction document project cost is $400,000 with funding to be provided by the Moritz College of Law general funds.

• Replacement of a portion of the walkways to Lincoln and Morrill towers. The construction document project cost is $660,000 with funding to be provided by House Bills 748 and 675.

• Construction of a helipad on Rhodes Hall tower. Trustees had originally approved the project for $2.9 million, but the cost has increased to $4.8 million resulting from the need to replace two failing chillers on the Rhodes Tower roof. The increase in funding will be provided by University Hospitals.

• Repair and weatherproofing of concrete and replacement of the hand railings in the area around Scott Hall. Construction document project cost is $150,000 with funding to be provided by House Bill 675.

• Renovation of the Emergency Department at University Hospitals East. Construction document project cost is $4.8 million with funding to be provided by the University Hospitals auxiliary funds and by future university bond proceeds with debt service to be provided by University Hospitals.

Waivers granted

Trustees accepted the quarterly report on waivers of competitive bidding requirements granted during the period of July through September 2003. The senior vice president for business and finance granted 75 waivers of competitive bidding requirements for annual purchases totaling approximately $8.4 million.

The vice president for health services granted 31 waivers for annual purchases totaling approximately $14.1 million. Waivers can be granted in the event of an emergency, when a sufficient economic reason exists or when the goods and services can be purchased from only a single source.

Master Plan updated

The board adopted the proposed 2003 Update to the University Master Plan, Volumes I and II, first adopted in October 1995. The Master Plan is updated periodically to ensure that it continues to be responsive to the dynamic nature of the university and the Academic Plan.

Property transferred

Trustees authorized the university to transfer property located at 6400 Sunbury Road in Blendon Township, subject to a life estate, to The Ohio State University Foundation for consolidation of interests and disposal of the property.

• The board approved the transfer of the real property comprising the South Campus Gateway from Campus Partners for Community Urban Redevelopment, to the university to be held for the use and benefit of Ohio State. This will allow tax-free bond financing. The South Campus Gateway, the initial redevelopment project for the South Campus/High Street redevelopment effort, is expected to be completed in summer 2005 and will include substantial university facilities, including office space, university housing, a parking garage and the Moritz College of Law Buckeye Barrister Club.

Bylaws amended

Trustees approved several amendments to the Medical Staff Bylaws of University Hospital East.

Master of law degree established

Trustees approved establishing a Master of the Study of Law degree in the Moritz College of Law. The degree, an alternative to the three-year, full-time program leading to a Juris Doctor degree, will be a non-professional degree providing an education in legal principles and methodology for students in other disciplines who have no previous legal training and require or could benefit from knowledge of the legal system. The program will be effective upon approval of the American Bar Association and the Ohio Board of Regents.

NIH compliance site visit reviewed

The board heard a report from Tom Rosol, interim vice president for research, and Todd Guttman, assistant vice president and regulatory counsel in the Ohio State University Research Foundation, on the August proactive compliance site visit to the university by a team from the National Institutes of Health.

The NIH team has visited 26 other research institutions in the past three years to ensure that institutional policies, procedures and practices are in compliance with federal guidelines. The reviewers focused on the areas of financial management of sponsored projects, financial conflict of interest, management of intellectual property issues, training and education and other issues related to the oversight of clinical research. According to Rosol, the visit went "extremely well."

Schottenstein Center celebrates five years

Trustees heard a report on the first five years of programming at the Jerome Schottenstein Center and Value City Arena. During that period, 4.5 million people have attended 617 events, said Center Director Xen Riggs. The center has employed 3,000 workers, of which about one-third have been Ohio State students.

The center's net budget has finished in the black for the past three years, and its total economic impact on the community has been $284 million. Upcoming expenses will include reupholstering, updated scoreboard and video systems, new athletic and moveable equipment and renovations to the physical plant. Among the future challenges is the highly competitive market for viable entertainment acts.

Academic report heard

The board heard a report on the entering first-year class -- the best academically prepared yet -- from Mabel Freeman, assistant vice president for undergraduate admissions and first year experience. The number of first-quarter freshmen attending the Columbus campus is 6,258, representing a 6.3 percent increase above the previous year. Fifty percent scored between 23 and 28 on their ACTs, improving the entering class ACT average to a record 25.4, compared to 25.2 the past two years. The 2003 national ACT average is 20.8. Student retention rates are also at record levels.

Susan Huntington, dean of the Graduate School, gave trustees a current overview of graduate education at Ohio State, which offers 100 doctoral programs and 125 master's programs. Of the 9,761 graduate students enrolled at the university's Columbus campus, 5,399 are Ohio residents, 1,591 are from other states, and 2,771 are international students. Huntington pointed out that a strong graduate program is essential to Ohio State's national reputation, and that the university is committed to competing for and attracting top faculty and students.

Student recognized

J. Briggs Cormier, a doctoral student in the Department of Theatre, received the trustees' Student Recognition Award.

Cormier served two terms as president of the Council of Graduate Students, during which he worked at implementing the Graduate Quality of University Experience (G-QUE) report, an extensive survey of graduate student issues at Ohio State. He served as director of "Roasted Shoes, Toasted Tootsies" for the Department of Theatre's Elementary School Touring Production and was a movement coach for the department's production of "Comic Potential." He is a member of the Association for Theatre in Higher Education and a recipient of the Outstanding Graduate Student Award and the Graduate School Leadership Award.