Approved:       March 13, 2007          

Date

MINUTES OF THE HOUSE GOVERNMENT EFFICIENCY AND TECHNOLOGY COMMITTEE

The meeting was called to order by Chairman Jim Morrison at 3:40 P.M. on March 7, 2007, in Room 526-S of the Capitol.

All members were present except Representatives Tafanelli, Wilk, and Frownfelter, all of whom were excused.

Committee staff present:

Mary Galligan, Kansas Legislative Research

Tatiana Lin, Kansas Legislative Research

Renae Jefferies, Office of Revisor of Statutes

Gary Deeter, Committee Assistant

Conferees appearing before the committee:

Reginald Robinson, President, Kansas Board of Regents

Others attending:

See attached list.

The minutes for the February 5 meeting were approved as corrected. (Motion, Representative Sloan; second, Representative Loganbill)

The Chairman welcomed Reginald Robinson, President, Kansas Board of Regents, who gave a brief resume of the Kansas Board of Regents, saying that the Board governs the six state universities, including the Kansas University Medical Center (KUMC), and has oversight of the state’s community colleges, technical colleges, and area vocational-technical schools. He noted that the Board’s governance for the University of Kansas Hospital changed in 1998, when the KU Hospital Authority became independent and structurally separate from KUMC and from the Board. Nevertheless, the Hospital is dynamically linked to KUMC and the Board through its mission, practice, and destiny.

Mr. Robinson stated that even though the Board now has no authority over the Hospital, two events related to KUMC have involved the Board’s interest:

•          The University of Kansas’ Chancellor and the KUMC made it a top priority to achieve a National Cancer Institute (NCI) designation, an objective for which the Kansas Legislature last year allocated $5 million;

•          The Kansas City community created a vision to raise to national prominence the local medical enterprise, a vision which the Board embraced.

Mr. Robinson stated that from these two initiatives, discussions emerged by the fall of 2006 to consider an affiliation between KUMC and St. Luke’s Hospital in Kansas City, Missouri. He commented that, as it was reported to him, a meeting with the Joint Legislative Budget Committee on December 11, which involved Chancellor Hemenway and former Senator David Kerr, the latter a board member for the KU Hospital Authority, appeared to be positive in moving toward an affiliation with St. Luke’s; he noted that the KUMC and KU Hospital were encouraged to work toward agreement as the medical center moved toward affiliation. (JLBC minutes, 12-11-06) He explained that at its January meeting the Board received a thorough briefing from Dr. Barbara Atkinson, Executive Vice Chancellor, KUMC, and Executive Dean, University of Kansas School of Medicine, a briefing which appeared to present affiliation in a positive light. Following that meeting, he said the Board chairman requested that Mr. Robinson gather responses from interested parties to specific questions raised by the affiliation issue, responses which he is currently reviewing and will discuss with the Board. He noted that KUMC and KU Hospital are currently involved in detailed negotiations regarding issues of affiliation.

Mr. Robinson responded to questions from Committee members:

•          No meetings are presently scheduled between the KU Hospital and the Board of Regents.

•          KUMC has established “bedrock” principles as guideposts (referencing Chancellor Hemenway’s testimony at a legislative budget hearing)* in pursuing affiliation with St. Luke’s Hospital.

•          KUMC has affiliations with many other hospitals, none of which has a deleterious impact on KU Hospital, but the KU Hospital may have the perception that a KUMC-St. Luke’s affiliation will have a negative impact.

•          The Board has been generally pleased with KUMC’s rationale for pursuing affiliation with St. Luke’s, as did the legislative policymakers at the December 11 meeting; however, the Board is seeking more information about the issues.

•          The University of Kansas School of Medicine, the KUMC, and the KU Hospital have a symbiotic relationship; the Hospital is needed in order for the school of medicine to achieve its research and educational objectives, enabling KUMC to provide a full range of training for physicians. The different entities have a range of joint interests, but are not necessarily a unified endeavor.

•          The Board and the KUMC recognize that an affiliation of St. Luke’s and KUMC is seen by the KU Hospital as diluting the role and mission of the Hospital.

•          The deadline of March 31 puts positive pressure on the parties to work seriously toward a resolution of the issues.

Members expressed concern that any affiliation with St. Luke’s will not only affect KU Hospital, but will reduce funding and students coming to Wichita’s KU physician-residents. A member suggested that an affiliation of KU Hospital with Wichita hospitals rather than St. Luke’s should be considered in seeking an NCI designation.

The Chairman requested that Mr. Robinson provide additional information:

•          Who initiated the talks with St. Luke’s Hospital?

•          Who set the deadline of March 31?

•           Will KUMC and the Board sign off on an affiliation with St. Luke’s without the agreement of the KU Hospital?

A member noted that the KU Hospital already has multiple affiliations. The Chairman requested a list of the Hospital’s current affiliations. When a member requested hearing from members of the Board of Regents, Mr. Robinson said the Board members would be happy to cooperate. The Chairman suggested follow-up hearings during the week of March 12.

The meeting was adjourned at 4:31 p.m. The next meeting is scheduled for Thursday, March 8, 2007.

*Chancellor Hemenway testified to these principles before the Joint Legislative Budget Committee in December 2006:

•          I will not support any partnerships or affiliations that I believe to be detrimental to the future of the KU Hospital or the patients it serves.

•          I will not support affiliations that transfer Kansas taxpayer dollars to directly benefit Missouri based institutions.

•          I will not support any affiliations that reduce the number of resident physicians from KU serving in the KU Hospital.

•          I will not support any affiliation that would compromise our commitment to train doctors for Kansas or to serve indigent Kansans.

•          And, I will only support affiliations which advance the vision of creating and sustaining new levels of excellence in the KU School of Medicine—and thereby contribute to improving the health of our state and region.

•          Finally, I will ensure that any affiliation proposals will be fully vetted and shared with the Hospital Authority board prior to adoption.