University Times

Officials from Pitt, the UPMC Health System and the soon-to-be-unified faculty practice plan of the School of Medicine are gathering information for use in restructuring the way the three organizations do business with one another, Chancellor Mark Nordenberg told Senate Council Sept. 15.

But contrary to a report at this month's Faculty Assembly meeting, there is no new "task force" or "negotiating team" working out details of the relationship, Nordenberg said.

"It's reached a point where it has become necessary for us to do financial and other due diligence so we have the information we need before we take the next steps" in the reorganization, the chancellor said. "Financial and legal representatives of the University, the UPMCS and the federated practice plan are acquiring information that we deem to be relevant and necessary. They are not negotiating." The restructuring, announced by Nordenberg last summer, includes transferring the practice plan from the University of Pittsburgh Medical Center Division (a Pitt entity that has since been dissolved) to the UPMC Health System and merging the positions of senior vice chancellor for the Health Sciences and dean of the medical school, among other moves.

Nordenberg reminded Council members that the reorganization plan emerged from discussions among Pitt, the UPMC Health System and practice plan administrators as well as medical faculty and the school's executive committee.

Staff Association Council (SAC) President Brian Hart called on University and UPMC Health System leaders to inform staff employees as soon as possible of staffing changes resulting from the reorganization.

Thomas Detre, senior vice chancellor for the Health Sciences, said he does not foresee any layoffs resulting from the restructuring. It's likely that more staff will be transferred from the UPMC Health System to Pitt than the other way around, he added. "I do not see any terrifying scenarios coming out of this separation," Detre told Hart.

The SAC president acknowledged that "the lack of information can be much more stressful than the reality" in administrative reorganizations. But he reiterated: "I do think it is the responsibility of UPMC and the University to let people know as clearly and as quickly as they can what to expect as a result of this split." Also at last week's Council meeting, Nordenberg restated his intention to present the proposed faculty retirement incentive plan to the trustees at the board's next public meeting on Oct. 23. The trustees' budget committee is expected to review the proposal on Oct. 22.

The plan, drafted by a committee of professors and administrators, is aimed at promoting intellectual renewal and the replacement of older faculty with younger, lower-paid ones.

Nordenberg said he hasn't decided whether he favors or opposes the plan, but will do so by the time the board meets. The chancellor did say he agrees with trustees chairperson J. Wray Connolly that the plan requires the board's blessing.

"This is a matter which, for budgetary and other reasons, would require approval by the Board of Trustees because any such proposal would involve significant modifications to the [Pitt fiscal year] budget approved by the full board at its late June meeting," Nordenberg said. "It is the decision of the chair that any such proposal and the accompanying modifications also should be approved by the board as a whole. And that means the October meeting of the board is the target date for decision-making, one way or another."

— Bruce Steele