Academic Center–Too Big to Fail?

A very interesting article published online in JAMA with a provacative title “Academic Medical Centers: Too Large for Their Own Health?”. The following few sentences are very telling “…. many of today’s AMCs are similar to huge tankers loaded with health care services, and research and education are merely passengers ……. the margins on clinical revenues are often used to cover deficits in budgets for research and education and from providing subsidized care ………. any changes threatening the margins from clinical care will affect the entire mission of an AMC. The AMC missions are not self-funded; the margins on clinical care are required at most AMCs …” (emphasis added).

Something for leaders in healthcare to think about and consider when planning for the future.