Health systems and universities seem to be at constant odds, stuck in perpetual negotiations despite having long-term affiliation agreements. Whether the debate is over faculty recruitment packages, purchased services and program support agreements, payment for graduate medical education, or the myriad other issues that academic medical centers (AMCs) must address, there is a tendency to get trapped in a transactional relationship characterized by one ad hoc deal after another.
At the same time, the size and scope of funding arrangements between university medical schools and their affiliated teaching hospitals and health systems continues to increase. As a percentage of total revenue, medical school funding from their affiliated hospitals and health systems has more than doubled from 7 percent in 1981 to 18 percent in 2017.
This article was first published in hfm Magazine, May 2018.