Albert Einstein College of Medicine taken over by Montefiore

[Bulbasaur]

Tl dr... Yeshiva University make bad investments back in 08 and is now bankrupt. Bronx health care giant Montefiore takes over AECOM. Good or bad for AECOM? Thoughts?

http://forward.com/articles/199004/yeshiva-u-sheds-burden-of-albert-einstein-medical/?p=all

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[Gauss44]

Tl dr... Yeshiva University make bad investments back in 08 and is now bankrupt. Bronx health care giant Montefiore takes over AECOM. Good or bad for AECOM? Thoughts?

http://forward.com/articles/199004/yeshiva-u-sheds-burden-of-albert-einstein-medical/?p=all

I think the CEO of Montefiore is an old human rights activist turned MD and then CEO. This could potentially be a good thing IMO. Just watch out for rising tuition costs.

 

[Goro]

NYMC had financial problems for years. The Great Recession hurt a lot of universities.

 

[DermViser]

Tl dr... Yeshiva University make bad investments back in 08 and is now bankrupt. Bronx health care giant Montefiore takes over AECOM. Good or bad for AECOM? Thoughts?

http://forward.com/articles/199004/yeshiva-u-sheds-burden-of-albert-einstein-medical/?p=all

Never a good thing for students of a medical school.

 

[TheShaker]

Are medical schools usually owned by these giant corporations?

 

[darkjedi]

Another example of how expensive it is to train physicians and conduct research. Tuition alone usually don't cover the actual cost of training a medical student.

 

[gyngyn]

Another example of how expensive it is to train physicians and conduct research. Tuition alone usually don't cover the actual cost of training a medical student.

Not even close. The last time I looked at this, tuition covered about 20% (even at private MD schools).

 

[chenzt]

Not even close. The last time I looked at this, tuition covered about 20% (even at private MD schools).

How does Carib manage to turn a profit? Do they really cut THAT many corners?

 

[gyngyn]

How does Carib manage to turn a profit? Do they really cut THAT many corners?

No research or clinical care.

 

[ace12345]

I really saw AECOM as a tremendous medical school. Does their perception - fairly or unfairly - take a hit nationally as a result of this? I'm sure they will land solidly on their feet, but does their research output take a hit?

 

[demayette]

No research or clinical care.

How about DO schools?

 

[username456789]

How about DO schools?

Same story.

 

[gyngyn]

How about DO schools?

Apparently they do run more of the enterprise on tuition but I don't have independent knowledge of the financing of DO schools.

 

[demayette]

Apparently they do run more of the enterprise on tuition but I don't have independent knowledge of the financing of DO schools.

So what/who cover the other expenses of these private MD schools?

 

[gyngyn]

So what/who cover the other expenses of these private MD schools?

The taxpayers (through NIH grants...), just like public schools (and the doctors who work there!).

 

[Bulbasaur]

I really saw AECOM as a tremendous medical school. Does their perception - fairly or unfairly - take a hit nationally as a result of this? I'm sure they will land solidly on their feet, but does their research output take a hit?

Nobody knows but I think the merger will be great for AECOM in the long run if yeshiva gives up total control of AECOM (which I don't think is happening). Essentially, they would be parting ways with a bankrupt university and becoming affiliated with a very financially stable hospital system (I believe I read somewhere that montefiore has been the only hospital in NY to actually make a profit after the ACA was put into place). However, I think research wise, it is better to be affiliated with an university, albeit yeshiva doesn't really do much research itself in the first place.

I think it will ultimately be like the system mayo has (correct me if I'm wrong but I don't think there is an undergraduate university associated with mayo medical school).

 

[Bulbasaur]

At the end of the day, these are things that hospital CEOs and school deans (top of the food chain) worry about. The extent to which their actions affect those on the bottom of the food chain (medical students like me) will hopefully be insubstantial.

 

[ThisCouldBeYou]

From the article:

It states that in addition to losses in research grant funding, Y.U. is primarily suffering because it has lost money on its investments and it is spending too much on student financial aid, faculty and facilities…..

They don't state this, but I think this because of their heavy investment with Bernie Madoff.

 

[karayaa]

Another example of how expensive it is to train physicians and conduct research. Tuition alone usually don't cover the actual cost of training a medical student.

I thought research costs were covered by NIH/foundation funding?

 

[gyngyn]

I thought research costs were covered by NIH/foundation funding?

The machine (infrastructure) necessary to be successful at securing grants must constantly be renewed and must be in place before you can get a grant.

 

[karayaa]

The machine (infrastructure) necessary to be successful at securing grants must constantly be renewed and must be in place before you can get a grant.

huh. and here i thought that med schools were getting rich off tuition...

 

[gyngyn]

huh. and here i thought that med schools were getting rich off tuition...

I'm surprised they don't all go broke.

 

[Obliquity]

From the article: They don't state this, but I think this because of their heavy investment with Bernie Madoff.

Actually, only a small portion of Yeshiva's money problems can be attributed to Madoff. It was estimated Yeshiva lost $100 million from their >$ 1 billion endowment due to Madoff. Universities typically spend 5% of an endowment per year, so that represents only $5 million per year in lost revenue. Yeshiva is currently looking at a budget deficit north of $100 million per year. Most of YU's financial issues are due to dramatically increased spending over the past few years, without increased revenue. Giving Einstein to Montefiore will help Yeshiva manage its deficit somewhat, and Montefiore's strong financial situation can only benefit Einstein.

 

[dogeisdoge]

there is no way it costs ~300k a year to train a medical student.

throw in whatever unreasonable costs you want, there is no way you can hit that number.

 

[dogeisdoge]

Found a statistic

"We now know enough information to assess the costs for a year of medical school. It costs society $112,409.90 to educate a first year medical student."

https://www.econ.berkeley.edu/sites/default/files/roth_nicholas.pdf

 

[darkjedi]

Found a statistic

"We now know enough information to assess the costs for a year of medical school. It costs society $112,409.90 to educate a first year medical student."

https://www.econ.berkeley.edu/sites/default/files/roth_nicholas.pdf

You realize that's a semester paper written by an undergrad right?

 

[dogeisdoge]

Its a graduate student and why does it matter?

Are you implying that grad students at Berkley don't know how to regurgitate information they find and do simple math?

 

[ridethecliche]

I think this will help out the school in the long run. The hospital will take on more of the cost of running the school which benefits them in the long run anyway.