Letter from Robert Lane, Office of the General Counsel

August 7, 1996

Robert Stellwagen, M.D.
President of the Medical Faculty Assembly
School of Medicine
1975 Zonal Avenue
Los Angeles, California 90033

Dear Dr. Stellwagen:

This letter is in response to your letter of June 23, 1996 (July 23) addressed to Dr. Van Der Meulen.

Let me begin by stating the School of Medicine did not terminate the funding of "29 senior county physicians" as indicated in your letter. The County of Los Angeles reduced funding under the County Professional Services Agreement (.CPSA) due to a shortfall in federal and state funding for the fiscal year commencing July 1, 1996, by 15.3%. This was in addition to the 2.5 million dollar unrealized curtailment for fiscal year 1995 and the loss of the costofliving adjustments for the fiscal years 1995 and 1996. This funding loss necessitated a reduction in clinical positions under the CPSA and the identification of certain County physician positions by the university for reassignment or other actions by the County.

Contrary to the assertion in your letter, the impact of the County reduction was carefully considered prior to the identification of positions for reassignment. The School of Medicine has attempted to obtain restoration of the reduction in funding by the County Department of Health Services which was unsuccessful. In arriving at a course of action the School of Medicine has sought to maintain the consistently high level of care provided at the LAC+USC Medical Center and to minimize the impact on the teaching aspects of internship training provided under the CPSA. In difficult financial times certain actions must be taken to deal with the realities in which we exist.

It is a pleasure to read of your endorsement of accountability for CPSA dollars and positions funded through the contract. As the School of Medicine committees conduct their deliberations this fall and seeks to monitor and measure productivity for purposes of compensation, your support will be welcome.

The University welcomes your participation in the many difficult decisions facing the School of Medicine in the years ahead. We urge you to encourage the County Department of Health Services to restore the reduced funding for physicians at LAC+USC Medical Center. Through our joint efforts we strive to maintain our mission of education and patient care in the years ahead.

Very truly yours.

Robert G. Lane
General Counsel

RGL:lk

cc: Dr. Steven Sample
Dr. Lloyd Armstrong, Jr.
Dr. Van Der Meulen