approximately $230 million to $250 million will also be funded by UK HealthCare. The project
has generated $72+ million in private sector payroll for the onsite construction and management
ofthe project. This translates into construction employment of the equivalent of 300+ full-time
people. The estimated vendor impact for the state of Kentucky is approximately $88.6 million.
Finally, Dr. Karpf discussed the need for expanded research space and a push for research
Mr. Murray Clark presented the building project update, indicating that Pavilion A will
open in May 2011. A ribbon-cutting ceremony is scheduled for May 15. The components of
phase 1A, 1B, and 1C are on schedule and under budget. This includes but is not limited to the
infrastructure central utilities, building core and shell, first phase of surgery, and the computer
Mr. Sergio Melgar presented the financial report. Comparing the balance sheet at
December fiscal 2011 and 2010, cash has decreased by $107.6 million due to the use of cash
reserves for the remainder of Phase 1A of the Patient Care Facility project. Accounts receivable
have increased $14 million compared to last year, and net patient service revenue increased
$20.8 million. The value of board-designated investments totals $201.9 million, which is a $19
million increase from December of last year. Net capital assets have increased $146.9 million
due to the planning for the patient care towers, the groundwork on the new site, and the
construction ofthe Patient Care Facility. Accounts payable have increased by $5.3 million. Net
assets have increased $614.5 million from December 2010, and total assets are at $1.2 billion.
UK Hospital shows an operating profit of $670,300 for the month of December and a year-to-
date income from operations of $17.2 million. Mr. Melgar also reported that, running counter to
national trends, patient numbers for the UK Hospital System are up for the month of January and
are moving in that direction for the current month of February.
Dr. Kevin Nelson presented for approval the privileges and credentials for Chandler and
Good Samaritan Hospitals. The committee made a motion and all privileges and credentials were
approved. He also presented a short report on the process for approval of appointments and
privileges for medical staff members and other licensed providers.
Dr. Brockman commented that this was a very impressive report. He next requested the
report from the University Relations Committee.
W. University Relations Committee Report
Ms. May, chair ofthe University Relations Committee, reported that URCR 1 was the
topic of discussion at the moming meeting.