UCLA Medical Center audit shows need for transparency

The original version of this article contained an error and has been changed. See the bottom of the article for additional information.

The UCLA Medical Center’s financial position improved over the last five years, but it plans to be more transparent about transferring money to UCLA’s campus, according to a state audit report released Thursday.

In June 2013, the state launched an audit of UCLA’s and UC San Francisco’s medical centers. The audit examined the two centers’ financial activities from 2008 to 2013.

The report stated that UCLA’s medical center generally offers high executive compensation and the number of its management positions increased.

The report did not find any violations at the UCLA Medical Center. One recommendation is that the center explain more why it transfers millions of dollars to departments in the UCLA David Geffen School of Medicine.

The center transferred money to the Geffen School of Medicine – but did not explain much how the money was being used, according to the report. The medical center was probably not as transparent with its funds because it is not required to do so by the state, the report said.

UC spokeswoman Dianne Klein said the University will work on issuing annual reports about its fund transfers to campus, as the report recommended.

“These latest audit results demonstrate that the university is not only in compliance with all relevant regulations governing our medical centers’ finances, staffing and quality of care, but often far exceeds them,” said Dr. John Stobo, UC senior vice president for health science and services, in a statement the UC released Thursday.

Patient care quality was stable since 2008 and patient care satisfaction increased, according to the report. UCLA’s medical center also had less charity care, or free or discounted healthcare for some patients, as part of their operating expenses than other three medical centers. The UCLA Medical Center depends almost entirely on patient revenue – about $1.8 billion or 96 percent of its operating revenue, according to the report.

Correction: The UCLA Medical Center transferred money to the David Geffen School of Medicine. No money went to departments in the general campus.

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