Kansas Health Institute | Information For Policy Makers. Health for Kansans.

By Mike Shields

KHI News Service



TOPEKA, Feb. 28 The University of Kansas Hospital could be sold, but for no less than $800 million, under legislation introduced Wednesday in the Senate Ways and Means Committee by Sen. Chris Steineger, D-Kansas City.



Steineger"s bill, which hadn"t been numbered or printed yet, would allow but not require the sale of the University of Kansas Hospital in Kansas City, Kan. It would not allow for the sale of the KU Medical Center, the medical school which is administered separately but in conjunction with the university hospital.



Steineger"s proposal would earmark 50 percent of the proceeds of a sale to the Kansas Board of Regents for building maintenance. The other half would be used to help pay down the unfunded liability of the state employees" pension plan.



"At first it sounds kind of outlandish," Steineger said of his bill. But once fellow lawmakers and others get past the initial "emotional reaction" the idea is worth considering, he said.



He predicted many would be jarred by his plan simply because the "letters K and U are on the side of the building. But in 1998, the Legislature all but privatized the KU Hospital when we created the hospital authority. It"s got separate management, separate purchasing procedures (than other state agencies). We did everything then but exchange the name for cash," Steineger said.



Lawmakers so far have shown little interest in the governor"s plan to increase turnpike tolls to help pay for the backlog of maintenance needs at the state universities. About $800 million in "deferred maintenance" work is needed at the universities and community colleges, according to education officials.



"I think it"s one of the options we could consider," Steineger said of his plan, "selling one building to take care of many."



Steineger said his bill also would require that any purchaser pay Wyandotte County full property taxes. The hospital currently does not because it is state owned.



"That"s an important point for Wyandotte County," Steineger said. "Alsoonly about 10 percent of the hospital"s current payroll comes home to Wyandotte County."



Steineger said most of the hospital"s employees live in Johnson and Douglas counties or Jackson County in Missouri.



"I think it"s valid to consider getting state government out of the hospital business," Steineger said.



The idea failed to impress Ways and Means Committee Chairman Dwayne Umbarger, R-Thayer.



"I'm betting it doesn't even get a hearing," he said.



The University of Kansas Hospital, KU Medical Center and St. Luke"s hospital of Kansas City, Mo. recently signed letters of intent to affiliate in the areas of teaching and research.



But Steineger said he knew of no one currently interested in buying the university hospital.



Mike Shields is a staff writer for KHI News Service, which specializes in coverage of health issues facing Kansans. He can be reached at mshields@khi.org or at 785-233-5443, ext. 123.