State University of New York

Health Science Center at Syracuse: Leasing Practices

The Health Science Center at Syracuse, which is one of four health science centers in the SUNY system, consists of four colleges and a teaching hospital. The Center leases space for medical clinics, offices, parking and storage. We examined the Center's leasing practices and found that controls are not adequate to ensure that leases are free from conflict of interest and are obtained at a reasonable cost. For example, even though some landlords are Center employees, competitive bidding procedures are not always used. Such procedures are intended to guard against favoritism and ensure reasonable prices. When one such lease was competitively bid, the new price was significantly lower. We also found that controls over renovations to leased space can be improved to ensure the reasonableness of these costs. We made several recommendations aimed at strengthening Center leasing practices, and plan to refer certain matters to the State Ethics Commission for further investigation into potential conflict of interest.

For a complete copy of 95-S-80 click here.
For a copy of the associated follow-up report click here.
For a copy of the 90-day response click here.