Increased startup cost for CMED realized in October, earmarked for 'research and clinical components'
Some Central Michigan University administrators knew they needed to increase the startup cost for the College of Medicine about a month before it was released to the campus community, but did not know how much.
"It was realized in mid-October that additional funding would be needed to address the research and clinical components for the startup of CMED," founding CMED Dean Ernest Yoder said in an email. "Following that, additional time was needed to clarify and expand how much additional funding would be needed."
Provost Gary Shapiro said in a release to the campus community Nov. 11 that CMU estimates the startup cost for CMED is “likely to exceed $30 million," with an additional $3 million in annual support. The university initially set aside $25 million over five years to fund CMED startup.
Original plans for a teaching-only College of Medicine did not align with revised Liason Committee on Medical Education standards, which require research and clinical components as well, Yoder said.
The LCME visited campus Nov. 13 through 16 to decide if CMED will earn preliminary accreditation.
"The latest cost estimates include these components with about 30 percent of the increase earmarked for research and 70 percent for clinical," Yoder said.
Shapiro told CM Life in December that CMU does not tag dollars, so he does not know how much money from tuition has gone toward funding CMED.
“Although we don’t tag dollars, we have not raised tuition to pay for the College of Medicine,” he said.
Total funding for CMED is coming from one-time capital reserves and operating funds that have been set aside in the operating budget for startup costs, including capital reserves budgeted in unrestricted net assets, Shapiro said in an email.
The $3 million in additional support is budgeted with several other revenue streams, Shapiro said. Tuition and fees at full operation will approach $19 million a year. Clinical practice and contracts are currently at approximately $10 million a year and are expected to increase. The plan for development endowment is to reach $1 million annually. GME funding (CMED partners) is currently $17.6 million a year.
Yoder and Shapiro did not say how many years the additional $3 million in annual support would be collected.
"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.
LCME will vote in February to decide if CMED will receive preliminary accreditation; CMU plans to receive a letter regarding the results in March.
