University of Southern California FINANCIAL REPORT 2009 09_USCFR_final_8.qxd:USCFR 1/16/10 2:58 PM Page B Highlights of USC’s 2009 Academic Year 2 Report of Independent Auditors 10 2009 Financial Summary 11 Budget 2009-2010 28 Board of Trustees 36 Officers, Executives and Academic Deans 37 Role and Mission of the University 38 Facing page, clockwise: USC University Hospital; Heather Macdonald, M.D., breast cancer surgeon; USC Norris Cancer Hospital; Fred Weaver, M.D., chief of vascular surgery 09_USCFR_final_5.qxd:USCFR 12/10/09 9:30 AM Page 1 A new era in USC medical care begins. university of southern california ................. 1 89471_USCFR_PG_2-9.r5.qxd:USCFR 1/18/10 3:11 PM Page 2 financial report 2009 ................. Highlights of USC’s 2oo9 Academic Year ................. A new era in medical care these sciences and other disciplines will become the focus of innovation and growth. The strategic hospitals acquisition will ensure the position of USC Medicine – comprising USC University Hospital, USC Norris Cancer Hospital, the Keck School of Medicine of USC, and the Doctors of USC – among the nation’s top- ranked integrated academic medical centers. With this acquisition, USC’s faculty physicians will care for private patients at two hospitals owned and man- aged by the university; this will allow greater physician direction of clinical programs and also permit the accel- eration of innovative therapies and surgical tech- a tremendous victory: This spring, the niques for cardiovascular and thoracic diseases, uro- Trojan Family grew by two. In a $275 million deal logic disorders, neurological issues, musculoskeletal (excluding transaction-related costs), USC acquired disorders, organ transplantation, cancer treatment, USC University Hospital and USC Norris Cancer disease prevention and other health concerns. Hospital from Tenet Healthcare Corp., making USC one of only two Los Angeles area uni- people who care: “A medical cen- versities owning hospitals. USC President ter is much more than just new equip- ment and new information systems,” A medical center is much more said Mitchell R. Creem, newly appointed CEO of the two hospitals. than new equipment and new “It is about creating a sense of hope – information systems. It is about hope that miracles can happen and that they creating a sense of hope – hope can happen here with our new treatments that miracles can happen and and our new cures. It’s about giving our patients a feeling that, no matter how des- that they can happen here. perate things feel at times, you have a place to go with people who care.” The best physicians, he added, want to Steven B. Sample hailed the acquisition as a practice at a university where they can see “tremendous victory” for the university. While patients while still pursuing advanced acknowledging that the purchase was a complex research to improve patient care. The quality of and expensive undertaking, he said the greater risk medical school and residency education is would be not to invest in such an important oppor- expected to see a great improvement, according tunity to advance clinical programs and research. to Vaughn Starnes, chair of the Department of Surgery at the Keck School and surgeon-in-chief innovation and growth: The 21st for the two hospitals. “I think faculty will be century will be an era in which medicine and biolo- even more engaged in the mission of teach- gy and the interdisciplinary connections between ing and education,” he said. Vaughn Starnes, M.D. university of southern california ................. 2 89471_USCFR_PG_2-9.r4.qxd:USCFR 1/16/10 3:15 PM Page 3 financial report 2009 ................. usc norris cancer hospital: One of only a few facilities in Southern California built exclusively for cancer research and patient care, USC Norris Cancer Hospital is a 60-bed inpatient facility providing acute and critical care. The hospital features a designated bone marrow transplantation unit and a surgical unit with specially trained staff who strive to meet the unique needs of cancer patients and their loved ones. Outpatients seeking diagnostic testing, chemotherapy, radiation treatment and second opinions are treated on- site with state-of-the-art technology. usc physicians outpatients seen annually at hospitals and ambulatory care centers usc university hospital: A private, 411- bed acute care hospital, USC University Hospital serves 7,700 inpatients per year. Opened in 1991, this 25o,ooo modern facility offers some of the most sophisticated technology available. Among the hospital’s advanced services are neurointerventional radiology, minimally invasive cardiothoracic surgery, robotic surgery and interventional cardiology. Surgical specialties include organ transplantation and neurosurgery, as well as uro- logic, bariatric, esophageal, orthopaedic, and plastic and reconstructive surgeries. the doctors of usc: The Doctors of USC are more than 500 physicians and specialists who are full-time faculty members of the Keck School of Medicine of USC. These physicians treat some of the region’s most complex and difficult cases and engage in groundbreaking medical The hospitals acquisition will ensure research while educating and mentoring the next genera- tion of world-class medical professionals. Patients and that USC Medicine – USC University their loved ones are always partners in the treatment Hospital, USC Norris Cancer Hospital, process, and it is this relationship that forms the founda- the Keck School of Medicine of USC, tion of the Doctors of USC’s approach to health care. USC and the Doctors of USC – is among physicians practice at USC University Hospital, USC the nation’s top-ranked integrated Norris Cancer Hospital, Doheny Eye Institute, health care centers on the Health Sciences campus and in down- academic medical centers. town Los Angeles, and at Los Angeles County+USC Medical Center and Childrens Hospital Los Angeles. university of southern california ................. 3 89471_USCFR_PG_2-9.r6.qxd:USCFR 1/19/10 5:00 PM Page 4 financial report 2009 ................. A record of accomplishment major economic engine A new independent economic impact study on USC shows that the university – which is the City of Los Angeles’ largest private-sector employer – is also one of California’s major economic engines. USC’s academic spending alone (excluding the impacts of the hospitals) generates $4.9 billion annually in economic activity in the Los Angeles region and beyond, including about $2.1 billion in total direct spending, $503 million in stu- dent spending on goods and services, and about $12 million spent by campus visitors. The university also annual economic activity provides jobs for nearly 27,000 Angelenos and creates in the Los Angeles region generated by USC thousands of non-university job opportunities, includ- ing construction jobs on projects such as the new Ronald Tutor Campus Center (shown at right), which is scheduled to open in the fall of 2010. $4.9B high marks for freshman class USC’s 2009 entering class is the most academically talented in the university’s 129-year history. Despite a difficult economic environment, demand remained high, with 35,753 applications for 2,869 places in the class. Students’ average standardized test scores are in the 94th percentile as compared to all students in the United States, and their average grade point average is 3.7. USC offers admission without regard to ability to pay, and the university meets 100 percent of the demonstrated need of on-time financial aid applicants. applications for 2,869 places USC has the largest university-funded financial aid in the 2009 entering freshman class budget of any university in the country, providing more than $180 million each year of university funds to undergraduates. Almost 60 percent of USC’s under- graduate students receive some sort of university aid. 35,753 This represents more than 9,000 students – more than the total undergraduate population of most highly selective private research universities. national medal trifecta When USC trustee, alumnus and faculty member Andrew J. Viterbi was awarded a National Medal of Science by President George W. Bush in 2008, it marked the third year in a row that a USC scholar had been honored in this way. In 2006, USC University Professor and California historian Kevin Starr received the National Humanities Medal, and in 2007 USC Distinguished Professor and celebrated composer Morten Lauridsen became the first USC faculty member to receive the National Medal of Arts. university of southern california ................. 4 89471_USCFR_PG_2-9.r4.qxd:USCFR 1/16/10 3:15 PM Page 5 financial report 2009 ................. the “art” of the university The USC Fisher Museum of Art has been accredited by the American Association of Museums, putting it among the 10 percent of university museums so recognized. Founded in 1939, it was the first museum established in Los Angeles devoted exclusively to the exhibition and collection of fine art; and its permanent collection consists of some 1,800 objects spanning five centuries (including Asher B. Durand’s 1850 “Kaaterskill Clove” at right). research funding up From March 2008 to February 2009, USC received $510 million in new research awards that can generate invaluable new knowledge – a striking 17 percent increase over the previous record, during a period when nationwide funding had stagnated. In addition, the university has been awarded more than $100 million in stimulus grants under the American Recovery and Reinvestment Act. Much of the credit goes to USC’s Washington, D.C.-based Office of Research Advancement, the only office of its kind maintained by any university in the country. asian presence With the opening of a new international office in Shanghai this fall, USC has increased its number of Asia offices to four – Shanghai, Hong Kong, Taipei and Tokyo – with two others set to open later this year. USC is the nation’s leader in international education, with over 7,000 international students, more than any other U.S.