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2014 Annual Financial Report UCSF’S Story Begins When South Carolina Surgeon Hugh Toland Ventured West to San Francisco, Where He Established Toland Medical College

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2014 Annual Financial Report UCSF’S Story Begins When South Carolina Surgeon Hugh Toland Ventured West to San Francisco, Where He Established Toland Medical College 2014 Annual Financial Report UCSF’s story begins when South Carolina surgeon Hugh Toland ventured west to San Francisco, where he established Toland Medical College. The campus grew over the years with the addition of the top- ranking schools of pharmacy, nursing and dentistry, a graduate division and medical center. Today, UCSF is a nearly $4.5 billion enterprise, where discoveries and innovation advance health worldwide. Celebrating 150 Years in Health and Science Table of Contents 2 Letter from the Senior Vice Chancellor — Finance and Administration 6 Management Discussion and Analysis 32 2014 Financial Statements 36 Notes to Financial Statements Letter from the Senior Vice Chancellor UC San Francisco is dedicated to transforming health worldwide through advanced biomedical research, graduate-level education in the life sciences and health professions, and excellence in patient care. We have top-ranked graduate schools of medicine, nursing, UCSF is fortunate to receive large philanthropic gifts dentistry and pharmacy; a graduate division with world- from generous donors who recognize the potential and renowned programs in the biological sciences, a preeminent importance of combining research, commercial innovation biomedical research enterprise, and the top-tier hospitals and exceptional patient care. These gifts have enabled UCSF Medical Center and UCSF Benioff Children’s Hospital. us to move ahead with the new UCSF Medical Center at Mission Bay, the Mission Hall Global Health & Clinical We continue to earn top rankings among the best schools Sciences Building, increase student scholarships, housing, and hospitals nationally and worldwide: and faculty recruitment, as well as other advancements. • UCSF’s School of Medicine ranked fourth nationwide in both research and primary care education, according New Partnerships to a US News & World Report national survey. Core to UCSF’s leadership strategy is our transition from • We ranked among the top five in seven subject areas, an academic health center to an academic health system. according to the inaugural US News & World Report’s By engaging new partnerships with physician groups and Best Global Universities. hospitals across the region, we continue to improve our • UCSF also ranked second in clinical medicine and cross-disciplinary efforts within the community, finding pharmacy, and fifth in life sciences in the 2014 new ways to collaborate and expand our reach. Academic Ranking of World Universities (ARWU). At the beginning of the fiscal year UCSF appointed • UCSF Medical Center ranked among the nation’s Sam Hawgood as our new Chancellor. Dr. Hawgood’s premier hospitals for the 12th consecutive year appointment was met with high praise both inside UCSF and is the best in Northern California, according and externally, with members of the academic, scientific, to the 2013-2014 America’s Best Hospitals survey clinical and political worlds praising his capabilities. conducted by US News & World Report. Effective January 1, 2014 UCSF became the sole corporate In 2014, UCSF celebrated the 150th anniversary of our member of Children’s Hospital & Research Center Oakland founding as Toland Medical College. From this beginning (CHRCO). CHRCO has one of only five ACS Pediatric we are now a nearly $4.5 billion enterprise and the second Level 1 Trauma Centers in the state and one of the largest largest employer in San Francisco. We play a major role pediatric intensive care units in Northern California. in the Bay Area’s vast and vibrant health care sector. Six With 190 licensed beds, more than 500 physicians in years ago we broke ground at UCSF Mission Bay, which 43 specialties and more than 2,600 employees, CHRCO is now a 60-acre campus representing the largest single is a leading teaching hospital with a respected pediatric redevelopment project in the city. We are also recognized residency program and a number of unique pediatric for our catalytic role in biotech company spin-offs. QB3, a subspecialty fellowship programs. CHRCO’s research consortium run by UCSF, UC Berkeley and UC Santa Cruz, arm, Children’s Hospital Oakland Research Institute is is a pioneering magnet for the burgeoning biotech boom, internationally known for its basic and clinical research. with UCSF Mission Bay serving as the centerpiece of this The affiliation between UCSF Medical Center and CHRCO thriving innovation zone. brings together two leading Bay Area children’s hospitals, Three breakthrough hospitals in children’s, women’s and strengthening our ability to meet marketplace expectations. cancer care will open in February 2015. Located alongside The affiliation has the potential to provide better health our world-renowned research campus, UCSF Medical care value to consumers through higher-quality care, Center at Mission Bay will further encourage the collaborative lower costs, and more coordinated access to services work for which we are known and the translation of at hospital locations on both sides of the Bay, as well laboratory discoveries into next-generation therapies. as medical facilities throughout Northern California. 2 Advancing Patient Care, Achieving • BRAIN Initiative: UCSF partnered with Lawrence Berkeley Health Science Breakthroughs National Laboratory and UC Berkeley to form the Tri-Institutional Partnership (TrIP), in an effort to promote collaborative The achievements and milestones reached in 2014 are stepping research among the three institutions. The partnership will stones in our continuous push to excel in the health sciences. focus on the Presidential BRAIN Initiative, a White House- Some of our recent accomplishments include: sponsored research effort to develop new conceptual and • National Institutes of Health (NIH) Funding: For the second technological tools that could revolutionize our fundamental consecutive year, UCSF’s four schools topped the nation in understanding of neurological processes and abnormalities, 2014 federal biomedical research funding with UCSF as a and in turn reveal new ways to treat, prevent and cure brain whole receiving the most of any public recipient and second disorders such as Alzheimer’s, schizophrenia, autism, most overall in funds from the NIH. These highly competitive epilepsy and traumatic brain injury. funds, which for UCSF totaled nearly $546.6 million in • The 2014 Helen Diller Family Comprehensive Cancer contracts and grants combined, reflect the caliber of research Center Symposium focused on a protein called Ras, on campus. Through our schools of dentistry, medicine, which is responsible for roughly one-third of all cancer cases, nursing and pharmacy, and the graduate division, these including some of the deadliest such as lung, colon and funds enable our scientists to advance understanding of pancreatic cancers. The five scientific sessions discussed the underlying causes of cancer, cardiovascular disease, Ras biology and biochemistry in relation to normal and diabetes, HIV, Parkinson’s and Alzheimer’s disease, and abnormal development and relevance to cancer initiation, others, and work to develop improved therapies for them. progression and therapy, and brought together academic • Groundbreaking Research: Peter Walter, PhD, earned and industry colleagues. major recognition for his groundbreaking research on the From our founding 150 years ago to the birth of biotech and unfolded protein response. In May, he received the 2014 the ongoing renaissance at Mission Bay, UCSF and the city Shaw Prize in Life Science and Medicine, Asia’s highest biomedical science honor. of San Francisco have grown and prospered together. Now the leading university focused exclusively on health, UCSF’s reach • Global Greatness: On its 10-year anniversary as a formal extends across the San Francisco Bay and around the world program, UCSF Global Health Sciences has 700 investigators where scientists, scholars and healers are leading revolutions working in 110 countries, attracting some of the field’s in health. biggest influencers to UCSF. In late 2014, UCSF celebrated the opening of the Mission Hall Global Health & Clinical Sciences Building, made possible by a gift from Atlantic Philanthropies and founder Charles F. Feeney. • Brain Injury Funding: An unprecedented, public-private partnership funded by the Department of Defense was JOHN PLOTTS | Senior Vice Chancellor - Finance and Administration launched to develop better-run clinical trials and may lead to the first successful treatments for traumatic brain injury. UCSF neurosurgeon Geoffrey Manley, M.D., Ph.D., the chief of neurosurgery at the UCSF-affiliated San Francisco General Hospital, will serve as the research team’s primary liaison to the NIH. 2014 UCSF ANNUAL FINANCIAL REPORT 3 Strong Foundation, An Unlimited Future In 2014, UCSF celebrated our 150th anniversary. We date our founding to 1864, when South Carolina surgeon Hugh Toland founded a private medical school in San Francisco after coming west in 1849 to seek his fortune in the California Gold Rush. After a few discouraging months as a miner, Toland set up a surgical practice in booming San Francisco. As his wealth and influence grew, he purchased land in North Beach and opened Toland Medical College. Since our founding as a small Gold Rush era medical school, we have continued to push the boundaries in research, education and patient care to become one of the world’s leading health sciences universities. In the spring of 2014, renowned pediatrician and School of Medicine Dean Sam Hawgood was appointed Chancellor of UCSF. As dean, he
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