State University of New York

Health Science Center at Stony Brook: Clinical Practice Management Plan

The Center, which is one of four SUNY health science centers, operates a teaching hospital and a nursing home for veterans. Patients at the hospital and nursing home, as well as other patients, may be treated by faculty from the Center's medical school. The revenue generated by this medical care is regulated by the Center's clinical practice management plan. For example, this revenue can be spent to compensate the medical faculty and for other necessary business purposes relating to the clinical practice. In addition, surplus revenue must be set aside for the benefit of the medical school.

We examined how the clinical practice revenue was used and found that the compensation paid to some faculty significantly exceeded the established limits. For example, over a two-year period, the amounts paid to four faculty exceeded the limits by a total of $650,000. We also identified expendi- tures that were not necessary for business purposes, such as a $49,000 severance payment to a former official of the nursing home. In addition, a surplus of $4 million had not been set aside for the benefit of the medical school, as required. 94-S-34