Despite volatile economic times, P&S rose to the financial challenges of fiscal 2002. The school’s revenue growth was
helped by strong double-digit increases in research grants and clinical
trials. P&S has averaged a steady growth of 9.8 percent a year for the
past several years. The operating budget at the end of the year was $857
million, up 9.4 percent from the previous year.
Sponsored research awards in fiscal 2002 totaled $298
million, from federal and non-federal sources, an 8.4 percent increase over
the previous year. In fiscal 2000 (the last year for which the Association
of American Medical Colleges released data), P&S and its affiliates
ranked eighth among medical schools in federally supported grants and
contracts.
Including funding for research at the New York State
Psychiatric Institute, P&S ranked fifth in fiscal 2001 among medical
schools in NIH funding (the last year for which NIH has released data). A
number of P&S departments ranked in the top 10 for NIH funding, as
compared with peers. Doubling of the NIH budget had a beneficial effect on
all medical schools, but the end of that double-digit increase in research
funding will force P&S to seek ways to keep research revenues strong by
identifying funding from other sources.
An important source of funding for clinical,
teaching, research, and outreach missions is the clinical revenue generated
by faculty physicians who provide patient care services. Faculty practice
revenue for fiscal 2002 totaled $328 million. This revenue supports
clinical faculty time devoted to teaching medical students, house staff,
and fellows and also subsidizes non-reimbursed and under-reimbursed care
provided to Medicaid and uninsured patients. Faculty practice activities
also support clinical research.
The value of new clinical
trial grants and contracts for fiscal 2002 was $51.5 million, a 38 percent
increase over the previous year. Of that total, $33 million came from the
NIH, a 21 percent increase, and $17.5 million came from industry, a 72
percent increase. Cash flow for clinical studies totaled $26.6 million, a
13 percent increase over the previous year. The Clinical Trials Network, a
joint venture of P&S, Cornell’s medical college, and New
York-Presbyterian Hospital, is now in its third year and brought in $5.3
million in new contracts, a 112 percent increase. Trials take place at more
than 30 sites.
Fund-raising contributions are expected to increase
with new leadership and reorganization of the development programs.
Successful fund-raising efforts this past fiscal year enabled continued
support of critical research and patient care programs, as well as new stem
cell research and research in Parkinson’s disease, hypertension, and
kidney disorders.
The substantial increase in endowment value over the
past seven years was due to strong fund-raising efforts and investment
performance. The value of the school’s endowment was $832 million at the end of fiscal 2002. Endowed professorships increased to 107.
Despite previous year increases in revenues, P&S
faces mounting financial pressures. The loss of patent income, combined
with expenses for new faculty recruitment, expansion of research and
clinical compliance activities, and increased demand for academic space and
university housing, has placed a strain on budgets. A significant loss in
patent income is due primarily to the declining licensing income from a
co-transformation patent. Reserves set aside from the patent and licensing
income will help set off the loss.
A strategic plan for Columbia Health Sciences
provides a guide to the facilities, resources, and personnel required to
implement initiatives that will contribute to future growth. Many of the
strategic planning initiatives, described elsewhere in this annual report,
will have a budgetary impact spread over several years. New investments
will be required to pay for modern teaching and assessment tools, tangible
rewards for teaching, new laboratories, additional student housing,
beautification of 168th Street, and faculty recruitment.
Implementation plans for new facilities have an
anticipated cost of more than $500 million over the next five years. New
facilities will be funded from gifts raised through the capital campaign,
grants, and university debt. An important part of facilities planning
revolves around the Audubon Biomedical Science and Technology Park, which
is envisioned as expanding into a five-building research park. Two
buildings are open and operational. By January 2004, the Irving Cancer
Research Center, the third Audubon building, will be open. P&S is in
the planning stages for Audubon IV, which will be devoted primarily to
biotechnology. The capital budget also is affected by expansions in
existing administrative facilities and programs. For example, the Office of
Grants and Contracts and the Institutional Review Board require greater
investment of space and other resources as our research portfolio grows.
Despite these challenges, the bold strategic plan
promises a dedicated investment in the stability of all P&S programs.
This will require the school to anticipate opportunities, build on
strengths, attract and retain the best minds, and make wise decisions about
the resources available.
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