The College of Medicine is expecting more than $30 million from the university over the next five years.
University support is just one of six revenue streams that will fund CMED. Combined with tuition, clinical and research dollars and other charitable donations, CMED’s current revenue totals $3.6 million.
According to CMED’s founding dean Ernest Yoder, the Liaison Committee on Medical Education requires a multitude of funding sources for accreditation.
“The LCME requires diversity in funding,” he said. “This is no different than any other medical school.”
CMED’s Senior Associate Dean of Administration and Finance Deborah Biggs said that in its early days, the college will rely heavily on each source of funding.
“It’s expensive,” Biggs said. “You really need the support of all these revenue streams. We hope the college will be in a position to be self-sustaining, but for now we need the support.”
The college drew $2.3 million from tuition, and $1.3 million from other revenue for the 2013-14 school year.
CMED has not received any funding through state appropriations.
“The state is cutting all of its education funding,” Biggs said. “They were not interested in funding new medical schools.”
To draw more funding from philanthropic donations, CMED has embarked on a $25 million marketing campaign. Biggs said 40 percent of donors are new and have no pre-existing relationship with Central Michigan University.
Biggs also said CMED is at about $20 million, or 80 percent, of its $25 million goal for charitable donations.
“We’ve been going out and telling our story,” CMED Director of Marketing and Communications Jim Knight said. “We’re talking to people that never had ties to Central. We’re reaching out to new communities.”
In 2009, CMU initially promised its medical school $25 million, at $5 million per year for five years.
In 2011, former Provost Gary Shapiro announced in a press release that donations were “likely to exceed $30 million.”
The university also expects to contribute an additional $3 million in continuing annual support for the medical program, according to the release. However, it did not specify how long the additional funding will be committed.
“The university’s $3 million support will be part of an overall operating budget for the College of Medicine of nearly $70 million,” Shapiro said.
Biggs said CMED’s infrastructure is different from a traditional medical school. As state funding reductions and other financial shortfalls have affected other medical schools across the country, CMED has taken a revised “patient-centered focus” to cut costs.
By stripping out departmental divisions and offering a “faculty group practice,” CMED will allow patients to see multiple specialists at once, rather than approaching multiple divisions separately to receive care.
“Any of the new medical schools are looking to form in the same way, so they don’t have these same problems 10 or 15 years down the road,” Knight said. “We have the opportunity to do something different.”
Biggs said using the funds strategically will be a prime issue for CMED, but the college must rise to the occasion from the very beginning.
“The challenge for us as a developing medical school is to develop in a way that is most efficient,” she said. “Our goal is to be as efficient as we can. We’re doing the best we can.”