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2015 Annual Financial Report Inside Front Cover Front Cover 2015 Annual Financial Report Inside front Cover Advancing Health Worldwide We are driven by the idea that when the best research, the best education and the best patient care converge, great breakthroughs are achieved. Disrupting the Status Quo for Good: UCSF is a collection of dedicated scientists, clinicians, students and staff who share a common drive to make the world a better place by advancing health and the human condition. Care and compassion are as critical as science and discovery in fulfilling our mission to drive change, and make a difference for individual patients and whole populations. Table of Contents 2 Letter from the Interim Senior Vice Chancellor — Finance and Administration 6 Management Discussion and Analysis 34 2015 Financial Statements 38 Notes to Financial Statements Letter from the Interim Senior Vice Chancellor At UC San Francisco, we are driven by the idea that when the best research, the best teaching and the best patient care converge, we can deliver breakthroughs that help heal the world. As a leading university focused exclusively on health Top Rankings for our Schools and Hospitals sciences, we are committed to continuing our culture of The following accolades for our schools and hospitals excellence in advancing biomedical research, providing demonstrate we continue to achieve top rankings among the best graduate-level education in the life sciences the best schools and hospitals nationally and worldwide: and health professions, and giving excellent patient care. • UCSF School of Medicine was ranked third best As San Francisco’s second-largest employer, we are in primary care and fourth best in research in a powerful contributor to the city’s energy, innovation the nation in the U.S. News & World Report’s and diversity. This past year has been one of continued Best Medical Schools. positive growth for UCSF. • UCSF School of Nursing was ranked third best New Hospitals at Mission Bay Campus in the nation in the U.S. News & World Report’s Best Nursing Schools. UCSF Medical Center at Mission Bay opened on February 1, 2015. This state-of-the-art hospital complex was • UCSF School of Pharmacy was ranked the best built with a focus on the patient experience. It includes in the nation in the U.S. News & World Report’s a 289 bed inpatient building for three hospitals: Best Graduate Schools. the UCSF Benioff Children’s Hospital San Francisco, • UCSF Medical Center ranked among the nation’s the UCSF Betty Irene Moore Women’s Hospital, and premier hospitals for the 13th consecutive year the UCSF Bakar Cancer Hospital. It also includes the and is the eighth best hospital in the nation, according outpatient UCSF Ron Conway Family Gateway Medical to the America’s Best Hospitals survey conducted Building. The complex serves as a third major UCSF by U.S. News & World Report. The annual rankings recognize hospitals exceling in treatment of patients site providing patient care. UCSF Medical Center at needing an exceptionally high level of care. Parnassus Heights will transition its focus to high-end adult surgical and medical services, including transplants Advancing Patient Care, Achieving and emergency medicine, while the UCSF Medical Health Science Breakthroughs Center at Mount Zion will become a world-class hub The accomplishments we achieved in 2015 reflect our for outpatient care, offering advanced diagnostic and continuous push to excellence and advancement in the therapeutic services. health sciences and our dedication to advancing health Strategically located on our world renowned UCSF worldwide. A few of our recent achievements are: Mission Bay biomedical research campus, the new • National Medal of Science: Dr. Bruce Alberts, a UCSF Medical Center at Mission Bay puts our physicians prominent biochemist with a strong commitment in close proximity to our researchers and nearby to the improvement of science and mathematics biotechnology and pharmaceutical companies in Mission education, was awarded the National Medal of Bay and beyond who are working to understand and treat Science by President Barack Obama in diseases ranging from cancer to cardiovascular disease November 2014. to neurological conditions. This proximity will accelerate the translation of laboratory discoveries into actual treatments and cures. 2 At UC San Francisco, we are driven by the idea that when the best research, the best teaching and the best patient care converge, we can deliver breakthroughs that help heal the world. • Recognition of Role in Fighting Hereditary Cancer: • Demystifying Autism: Two major genetic studies of autism, Alan Ashworth, PhD, president of UCSF Helen Diller Family led in part by UCSF scientists and involving more than 50 Comprehensive Cancer Center, and senior vice president laboratories worldwide, newly implicated dozens of genes for cancer services at UCSF Health, received the 2015 in the disorder. The research showed that rare mutations Spirit of Empowerment Award from Facing Our Risk in these genes affect communication networks in the brain of Cancer Empowered (FORCE), for his significant and compromise fundamental biological mechanisms that contributions to research, advocacy, clinical care, govern whether, when and how genes are activated overall. education, awareness, and support of hereditary breast, • Stand Up for Science: A group of five UCSF graduate ovarian and related cancers. students and a postdoctoral scholar won a national video • Health and Human Services Secretary Visited UCSF to competition called “Stand Up for Science.” The objective Discuss Advances in Precision Medicine: In March 2015, of the competition by the Federation of American Societies Health and Human Services Secretary Sylvia Mathews for Experimental Biology (FASEB) was to create a short Burwell met with UCSF scientists who are working to video that demonstrated the importance of the federal gather genetic and other data from patients with specific government’s investment in biomedical and biological diseases, in an effort to develop medical treatments highly research. The UCSF team won for their video “Funding tailored to the individual patient. Ms. Burwell emphasized Basic Science to Revolutionize Medicine,” which showed that advances in fields like genetics, immunology and that the federal government’s funding in 1960 of the study data science; the adaption of technologies like electronic of bacteria’s defense mechanisms led to revolutionary medical records and the dramatic decrease in cost of techniques of gene splicing, which then led to advancements DNA sequencing, have opened new doors of possibility. in the treatment of major diseases such as cancer, stroke and HIV. • Medical Education: After more than two years of work, the Faculty Council approved a blueprint of the UCSF UCSF embodies a highly collaborative culture that values Bridges Curriculum Redesign, which aims to address unique perspectives in designing solutions for better health. the ever-widening gap between what medical students Our passion for improving the human condition and pushing are taught and what they need to know to function as the boundaries will continue to drive us in our mission of modern physicians. This new curriculum program will advancing health worldwide. launch in the academic year 2015-2016. • Collaborative Culture: School of Dentistry Research and Clinical Excellence Day was the largest ever in the event’s A eleven year history. It featured nine research presentations, two clinical case presentations and a record 61 poster presentations. Chancellor Sam Hawgood cited the day as an especially strong example of the collaborative and TERESA COSTANTINIDIS interdisciplinary culture of science and clinical practice Interim Senior Vice Chancellor — Finance and Administration at UCSF. 2015 UCSF ANNUAL FINANCIAL REPORT 3 At UCSF Health, we are leading the world in a wide range of medical research, by training the next generation of caregivers and by delivering outstanding patient care at every opportunity. UCSF Health Mark R. Laret, chief executive of UCSF Medical Center and UCSF Benioff Children’s Hospitals put it best when he said: “Patients come to UCSF from many places in the country and the world to gain from the expertise of clinical experts at the very top of their fields and to benefit from the latest research and innovative treatments that are a hallmark of our work. It’s an honor to work on behalf of these patients who are treated by physicians, nurses and the many other practitioners and staff providing a wellspring of compassion and innovation.” At UCSF Health, we are leading the world in a wide range of medical research, by training the next generation of caregivers and by delivering outstanding patient care at every opportunity. This unique combination of missions allows us to employ not just the brightest, most well-respected health care professionals around, but also, some of the most compassionate and attentive. “We are very proud of the work carried out every day at UCSF Medical Center by our health care practitioners. Their dedication and commitment to excellence exemplify UCSF’s core values, and are the frontline of UCSF’s mission of advancing health locally and worldwide through excellence in education, research and patient care,” said UCSF chancellor Dr. Sam Hawgood. Management Discussion and Analysis The Management Discussion and Analysis presented in this document is intended to help readers of the financial statements of the University of California, San Francisco (UCSF) better understand the financial
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