Fiscal update
Dear VCU and VCU Health Community,
We’d like to update you on the fiscal status of the VCU enterprise, particularly related to our recent reports to the VCU and VCU Health system boards last week and resulting media coverage.
Clearly, COVID-19 has had a profound impact on VCU, as it has with other universities, health systems and businesses. Fortunately, supplemental federal and state funding, including CARES Act and other emergency funds, have helped us blunt the worst consequences of these impacts.
Just as important, with your help, we took proactive steps at the university and the health system to mitigate these financial impacts without resorting to COVID-related layoffs or furloughs.
We have talked openly about these impacts and our responses, including at Health System and University board meetings. We want to clarify that revenue shortfalls do not necessarily translate into net losses. In fact, thanks to proactive measures, the university and its health system maintain balanced budgets.
On the university side, we had the foresight to reduce our overall expenses for this fiscal year by adopting cost-saving actions such as a hiring freeze and refinancing bonds. The health system bounced back quickly after the first wave of COVID and adopted other cost-saving measures that made a difference.
This required sacrifice and diligence on the part of everyone, and we are grateful for that. While the financial impacts of COVID remain a serious concern, we are prepared to deal with the third wave of the pandemic.
VCU is a strong and resilient institution. We are confident that as One VCU, we will carry out our missions to the benefit of our students, our patients, our team and the Commonwealth.
Sincerely,
Michael Rao
President, VCU and VCU Health System
Art Kellermann
Senior Vice President for Health Sciences and CEO VCU Health System