KU Medical Audits Ordered

By Tim Carpenter

By Tim Carpenter

THE CAPITAL-JOURNAL

The Legislature’s audit committee Tuesday engaged in a round of partisan finger-pointing before approving a massive financial investigation of The University of Kansas Medical Center and The University of Kansas Hospital.

The three-month probe by the Legislative Division of Post Audit will dovetail with exasperation expressed by some legislators with negotiations by the medical center to form cooperative research and teaching agreements with the St. Luke’s Hospital system in Kansas City, Mo.

The Legislative Post Audit Committee, which includes House and Senate members, agreed to merge three studies sought by Republicans and two requested by Democrats, with work expected to be completed by the fall. The review will focus on the financial soundness of the medical center and the KU hospital, which are separate institutions but share a campus in Kansas City, Kan.

“If there are questions about decisions being made at the medical center, there should be questions about KU hospital,” said Senate Minority Leader Anthony Hensley, D-Topeka.

The joint committee stumbled through an untoward debate about the proposed affiliation. At one point, several committee members admitted the discussion was so muddled it was unclear whether they had formally approved the audit or simply endorsed the idea of moving in that direction.

Rep. Tom Burroughs, D-Kansas City, joined with Hensley in accusing the committee’s chairwoman, Rep. Peggy Mast, R-Emporia, of jeopardizing the joint committee’s integrity by pursuing political audits.

“I have great concerns as to the direction of this committee,” Burroughs said.

“I would have to say that during this year we have had some contentious issues,” Mast replied. “I don’t know if we should look at them as partisan or not.”

Sen. Nick Jordan, R-Shawnee, urged fellow committee members of both political parties to get behind a nonpartisan examination of the medical affiliation initiative.

“We’ve got audit requests that point fingers,” he said. “I’d like to see a balanced approach.”

GOP legislators have been among the harshest critics of the affiliation sought by the medical center, expressing concern the deal with St. Luke’s could undermine the financial future of the KU hospital, which competes with St. Luke’s.

Democrats, including Gov. Kathleen Sebelius, have generally praised efforts to broaden the medical center’s reach. From the beginning, proponents of an affiliation have labeled the GOP’s involvement as unnecessary micromanagement and a hindrance to bioscience and cancer research.

The joint committee agreed to audit the financial ledger of the medical center, which includes the School of Medicine. This involves assessment of whether the medical center seeks to affiliate with St. Luke’s because of insufficient cash to cover millions of dollars in commitments to staff members. Auditors will look into how the medical center spends its operating grant from the Legislature, especially how money is distributed to medical school campuses in Kansas City and Wichita.

At Hensley’s request, auditors will determine if the KU hospital is meeting obligations to the state. Attention will be placed on discussion of awarding a $1.7 million severance to KU hospital chief executive officer Irene Cumming when she resigns in June. She is a critic of the proposed affiliation with St. Luke’s.

“I think it’s a buy-off,” Hensley said. “That’s my political opinion. What we need is an audit to ascertain the facts.”

Hensley also received approval for examination of reports the KU hospital is buying an electronic medical records system from a Wisconsin firm for millions of dollars more than the amount bid by Kansas City-based Cerner Corp.

Sen. Chris Steineger, D-Kansas City, inserted into the audit evaluation of the medical center’s method of calculating the value of indigent care provided to patients. He said the amount reported by the medical center might be inflated .

Tim Carpenter can be reached

at (785) 296-3005

or timothy.carpenter@cjonline.com.

(c) 2007 Topeka Capital Journal. Provided by ProQuest Information and Learning. All rights Reserved.