The appointment of Dr. Sam Wiesel to the newly-created position of Senior Vice President of the Medical Center and Dean of Clinical Affairs is critical to the fluorishing of the Georgetown-MedStar partnership, University President John J. DeGioia said in his response to a petition submitted by Medical Center faculty. The petition, which was sent to DeGioia in December, protested Wiesel’s appointment due to a “lack of confidence” in his abilities.
“We must strengthen and realize the full potential of the Georgetown-MedStar partnership,” DeGioia said in his response last Thursday. “The future success of the Georgetown Medical Center is directly dependent on the success of the clinical enterprise and the success of our efforts, along with MedStar leadership, to work as effective partners.”
Before the partnership of the Georgetown Medical Center with MedStar Health was established in June 1999, the Medical Center had struggled for several years with long-term deficit. In the 1998 fiscal year, the Medical Center registered a $62.4 million deficit, with a $83.7 deficit in FY 1999 and a $19.6 million deficit in pre-MedStar FY 2000.
“From 1996 through the year 2000, the Medical Center lost approximately $250 million, most of which occurred in the clinical enterprise,” Executive Director of Communications for the Medical Center Amy DeMaria said.
When the Georgetown-MedStar partneship was finalized, MedStar bought the hospital from the University and absorbed the entirety of the Medical Center’s prior debts.
“The University’s partnership with MedStar has had a positive impact on the finances of the University because, as of July 2000, Medstar assumed responsibility for the operations and financial performance of the clinical enterprise, which, in the late 1990s, had contributed to significant deficits,” DeMaria said.
Once the deal was set, the University received an up-front payment of $80 million from MedStar. These funds were used to address Georgetown’s debts from its clinical enterprise as well as transaction costs. An additional $15 million was negotiated separately for MedStar to buy the rights to certain University clinical facilities.
Since the MedStar deal, the Medical Center deficit has undergone a considerable decrease. In FY 2001, the Medical Center registered a deficit of $35.1 million. The Medical Center still registers a deficit of approximately $15 million annually since its MedStar partnership because of its research-oriented activities, DeMaria said. “Research is a money-losing operation,” she said.
MedStar executives are currently working with Medical Center administrators?including Wiesel?to lessen this annual deficit.
“MedStar Health has considerable experience managing a number of other hospitals and health care organizations, and the leaders of Medstar and Georgetown Hospital are working extremely hard to turn around the Hospital’s financial situation,” DeMaria said.
In his reponse to the petitioners, DeGioia defended his promotion of Wiesel?who currently holds the position of Executive Vice President of Health Studies?saying that Wiesel “has been extremely helpful in facilitating the creation of an effective partnership [with MedStar] and, in doing so, has maintained the confidence of MedStar’s leadership.”
In an interview with the Voice on Jan. 17, petition signer and former chair of the Medical Center Caucus Michael Cole said that he did not think that Wiesel was appropriate for the new position because he would be making important decisions for the Medical School while being paid by MedStar.
DeGioia responded to such concerns, saying that the new position was beneficial because it would allow Wiesel to report directly to MedStar as well as to the Executive Vice President of the Medical Center.
He added that Wiesel was particularly suited for the position because he felt that Wiesel had demonstrated his ability to effectively work with both the Medical Center staff and Medstar officials in the past.
“Throughout the turbulent years of his leadership, Dr. Wiesel has admirably maintained the operational focus necessary to provide excellent clinical education,” DeGioia said. “The experience, institutional knowledge and working relationships he has developed are unique. His continued leadership during this time of change will ensure the continuity and stability necessary to maintain educational excellence.”
DeGioia added that MedStar had specifically chosen Wiesel as the MedStar officer who would be responsible for clinical education.
