Staff Editorial: A golden opportunity

Two years ago, when University President Judith Rodin fired then-Medical School Dean and Health System CEO William Kelley, things looked quite bleak.

The system had lost in excess of $300 million during Kelley's final two years at its helm, its deficit spiralling dangerously. The Health System, which operates four hospitals in and around the city in addition to the Hospital of the University of Pennsylvania, was forced to jettison some 20 percent of its total workforce.

The Medical School faced a severe budget shortfall. The losses were so massive that they affected every area of University life, derailing the dormitory and dining renewal program unveiled with such fanfare only two years before.

At one point, the University even considered selling it.

But today, the Health System has, by all accounts, made a remarkable turnaround. Fiscal year 2001 actually saw a profit of about $25 million. And this week's announcement of a $100 million dollar gift from the Philadelphia Health Care Trust is a further and much needed boost to a system that, though recovering, remains troubled and deeply in debt.

It is imperative that this money be used wisely by the University and the Health System as it seeks to achieve financial solvency. Though Penn has taken steps -- primarily through the creation of Penn Medicine -- to insulate itself from future financial troubles within UPHS, it is by no means totally free of any risk.

Still, the University has been given a golden opportunity with this much needed influx of cash over the next seven years to help fill the gaps left by years of staggering losses. Now, in particular, Penn should revisit those projects that were delayed, either temporarily or indefinitely, as a result of the Health System crisis.

The University may have just been given the means to make the Health System solvent and profitable for the future. It cannot afford to squander the chance.

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