All $20 million in transferred funds from the UNC Health Care system will be used to offset a state funding cut of almost 18 percent or more than $100 million at UNC-Chapel Hill, said UNC Health Care spokeswoman Karen McCall.
The Board of Governors’ budget and finance committee approved UNC’s cut during a telephone meeting last week, the largest for any UNC-system school. McCall said the proposal to transfer funds from UNC Health was discussed in the spring but was not finalized until the state budget became law in June.
UNC Hospitals reported last year that it expected to lose about $300 million in charity care expenses, or one-fifth of the hospital’s total operating expenses. But McCall said the hospital has been able to make money above their expenses despite spending even more on compensated care, freeing up extra funds for UNC.
“I think it’s very reflective of how strong our partnership is with the UNC system and UNC-Chapel Hill,” she said. “There’s certainly acknowledgement on our part of the benefits derived from being part of the UNC system.”
