STRATEGIC INVESTMENT PRIORITY: MEDICAL EDUCATION
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Penn States College of Medicine and The
Milton S. Hershey Medical Center are important statewide resources, training
many of Pennsylvanias physicians and providing the highest level of
health care to more than a half million patients each year. Since its first
graduating class over 30 years ago, more than 3,000 physicians and 700
scientists have graduated from the College. Student interest remains
exceptionally strong, with 5,600 applicants for the entering class of 135.
Nationally, one out of every seven applicants to medical school in the United
States applies to Penn States College of Medicine. It is recognized by
U.S. News and World Report as one of the top medical schools in the country for
primary care, which includes family practice, general internal medicine, and
general pediatrics.
The Milton S. Hershey Medical Center is the only
academic medical center in Pennsylvania not located in a major metropolitan
area, and the only one between Pittsburgh and Philadelphia. In 2003-04, the
Medical Center admitted over 23,000 hospital patients, saw more than 63,000
people in its emergency and operating rooms, and served over 697,000 people
through its clinics. The Medical Center has the only childrens hospital
in central Pennsylvania, serving the needs of more than 3,800 critically ill
children each year. It is the only level-one trauma center. These services
would not be available to residents of a large part of the state without the
expertise of physicians associated with the College of Medicine. The College of
Medicine has been the provider for the statewide Area Health |
| Education Centers (AHEC) program since its inception in 1994.
Penn State coordinates eight regional groups around the state to facilitate the
recruitment and retention of primary care providers in under-served
communities. These efforts demonstrate Penn States unique commitment to
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Penn States Milton
S. Hershey Medical Center was founded in 1963 with a $50 million gift from the
M. S. Hershey Foundation. Shown here is the College of Medicine building under
construction circa 1967. |
| education programs in the health
professions including medicine, nursing, and allied health in every corner of
the state. In addition, the College of Medicine produces the largest number of
practicing primary care physicians of any medical school in the
Commonwealth. |
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| The Milton S. Hershey Medical Center
complex circa, 1972. Since admitting its first class in 1967, Penn
States College of Medicine has graduated more that 3,000 physicians.
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Historically, the College of Medicine has
received a much smaller share of its operating budget from Commonwealth
appropriations than any university medical center in the nation. Penn
States appropriation for medical education, which was $4,829,000 for
2004-05, has for several years ranked 76th out of 76 public medical schools in
the United States - dead last. The average appropriation for other medical
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is now approaching $50,000,000. One result of
Penn States inadequate state appropriation is that the College of
Medicine has had to rely on Medical Center revenues to provide support for
medical education.
Nationally, academic medical centers are facing
severe fiscal constraints brought about by the Balanced Budget Act of 1997,
which has resulted in declining reimbursements from Medicare and Medicaid, and
from changes in managed care. The impact of these trends on Penn State is that
The Milton S. Hershey Medical Center can no longer generate a sufficient
operating margin from clinical revenues to meet its own needs for capital
investments while supporting the College of Medicine in the absence of an
adequate state appropriation.
In 1997-98, the Medical Center was able
to provide academic support of $42,540,000 to the College of Medicine. Because
of the declining reimbursements and managed care changes, the operating margin
for 2004-05 is expected to be such that the Medical Center will be able to
transfer only $20,000,000 to support the College of Medicine.
To meet
the challenge of decreased funding over the past five years, the College of
Medicine has had to increase medical tuition for Pennsylvania resident students
by $10,710, or 62 percent. The current annual tuition for resident medical
students is $27,886. (Non-resident students pay $38,768.) It has also had to
reduce investments in medical research, restrict salary increases for faculty
and staff, reduce or defer facilities renewal investments, and cut departmental
operating budgets by over 18 percent. At the same time, the Medical Center has
had to deplete its operating margin to provide even the reduced academic
support payments to the College. Therefore, it has not been able to support
critically needed investments in the clinical enterprise of the Medical Center.
The world-class medical education available through Penn States
College of Medicine is in serious jeopardy. The University is requesting an
increase of $10,000,000 for 2005-06, and again in 2006-07 and 2007-08, for a
total increase of $30,000,000 in the base appropriation for the College of
Medicine. This will represent an important strategic investment in the health
and well being of the citizens of the Commonwealth of Pennsylvania. |
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An 1893 baseball game
at Old Beaver Field, which also hosted intercollegiate football and track
events. |
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