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Financial surplus, cost-saving strategies discussed at Board of Regents HSC Committee meeting

Changes to the Sandoval Regional Medical Center

Cost-saving changes to the Rio Rancho-based UNM Sandoval Regional Medical Center will be implemented over the coming weeks, said UNM officials at Tuesday’s Board of Regents HSC Committee meeting.

UNM Hospital CEO Steve McKernan and Michael Richards, executive physician-in-chief for UNM Health Systems, announced the changes to the committee.

Clinical growth initiatives, personnel reductions and the closing of certain units were mentioned as cost-saving mechanisms to compensate for changes in New Mexico health care.

McKernan said that low funding, statewide Medicaid cuts and some general revenue loss have forced the cost-savings measures to be implemented.

The Senior Behavioral Health Unit at the Sandoval Regional Medical Center will be closing to make room for outpatients and other SRMC patients, but Richards noted the center would be able to absorb the Senior Behavioral Health Unit patients into UNMH general care.

McKernan pointed out that though mental health and addiction is a pressing concern for the community, Albuquerque now has a higher capacity than ever to treat those needing psychiatric help.

“I don’t see any impact in the transition from the Behavioral Health Unit at SMRC to UNM Hospitals,” he said.

McKernan also mentioned recent initiatives taken by Albuquerque and Rio Rancho-based primary care providers in expanding mental health provisions.

Reducing personnel levels by about 50 employees, down to industry norms, was another cost-saving measure used, the presenters said.

Certain surgery procedures will also be expanded under the new cost saving initiative.

Richards said he was confident the measures will allow the facility to adapt to the losses sustained during the shifting health care environment.

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Health Sciences Center financial update

A budget surplus of $1.6 million for the UNM Health Sciences Center was reported for the month of January, according to Executive Finance Officer Ava Lovell, who presented the update to the committee at its Tuesday meeting.

Among the contributors to the surplus were lower transfer rates, higher student enrollment and a slight increase in revenue from the tobacco tax.

Increases in cigarette tax revenue, appropriated to the UNMH Cancer Center and HSC as a whole, added to the positive January budget.

A 10 percent hike in enrollment also generated better tuition rates for HSC, according to the report.

Lovell also noted that increased hiring in certain departments at UNMH — including the Cancer Center, Department of Radiology and the Department of Emergency Medicine — have resulted from the favorable position.

New Additions to UNM Medical Group Board

On Tuesday, two new additions to the UNM Medical Group Board of Directors were unanimously approved by the UNM Health Sciences Committee.

Gary Mlady and Melissa Ivers were the two approved. They expressed their gratitude for the nomination and excitement to get started on the job.

Mlady serves as the chair of the Department of Radiology, and Ivers is the director of faculty practice in the Division of Dental Services.

Brendon Gray is a news reporter for the Daily Lobo. He can be reached at news@dailylobo.com or on Twitter @notgraybrendon.

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