Rice-BCM Merger

Future of BCM

2010-02-15T03:17:00.000-08:00

*From:* Dr. William T. Butler [mailto:notestothepresident@BCM.EDU]

*Sent:* Wed 1/27/2010 5:46 PM

*To:* BCM-ALL@LISTSERV.BCM.EDU

*Subject:* An Important Message from Dr. Butler

January 27, 2010

To Members of the Baylor College of Medicine Community:

Fourteen months ago, I agreed to take the position of interim president of Baylor College of Medicine at a time when our leaders were working to define what the future of the college should be.

Facing financial difficulties caused in great part by a slumping economy, we were open to considering all types of solutions. I am announcing today that the Baylor College of Medicine Board of Trustees has unanimously approved that Baylor College of Medicine will continue as an independent, autonomous institution. We are not considering any additional partnerships at this time, but we will be free to develop relationships with other institutions when needed to strengthen and expand our academic programs.

Baylor College of Medicine has found its solution. And it's Baylor College of Medicine.

We have had some high profile discussions with Rice University and with Baylor University. In both cases, all parties involved decided it was best to support each other without any change in our affiliation status. All are agreed that we have identified many areas where we can develop joint programs.

Rice University and Baylor University are both respected institutions and we have high regard for their leaders, faculty, staff and students. We move forward in a spirit of mutual respect.

We are grateful for the support of Texas Children's Hospital, who helped us in this process of exploring partnerships. We would like to thank Texas Children's CEO Mark A. Wallace and his leadership team.

These months of discussions with others and thousands of hours spent looking at our organization have left us with one obvious path to take. We are particularly grateful for the advice and counsel from our faculty, students, staff and alumni. Baylor College of Medicine must take charge of its own destiny.

Our board of trustees has unanimously endorsed a three-point plan: establish a long-range comprehensive strategy; reach an agreement with the college's creditors, which will include the appointment of a chief implementation officer to oversee adherence to the comprehensive plan; and begin the search process for a new president.

Over recent months, we have had a significant improvement in our financial performance. We have a positive cash flow and our cash and investments now exceed $1 billion. Both clinical services and research revenue are up and the margins in both of those activities have increased. We will face some tough challenges, but I'm confident we will be successful.

With the decision on our independence made, the board will name a search committee as soon as possible to begin identifying candidates to lead the college in the future. I will continue to serve as interim president.

With the continued support of outstanding affiliated teaching hospitals, the dedication of faculty, staff, students, trainees and alumni and the encouragement of the Houston community, we face our future with a great sense of pride and optimism. We will draw on the commitment to excellence, independence and entrepreneurship that brought us to this day.

Our missions of conducting groundbreaking research and offering the best education and training for the physicians and scientists of tomorrow are the cornerstones of our future. The patient care we offer in our ownclinics and with our outstanding partner hospitals -- Ben Taub General Hospital, the DeBakey VA Medical Center, Texas Children's Hospital, The Menninger Clinic, Memorial Hermann TIRR, St. Luke's Episcopal Hospital, M.D. Anderson Cancer Center and The Methodist Hospital -- will always be practiced with the patient as the focus and linked to our research advances.

I personally thank you for your support as we've very carefully done our due diligence on what is the best future for Baylor College of Medicine. It has been a lengthy and complex process, but a necessary one.

With all of our accomplishments over the past 110 years, I believe that our best days are still ahead.

William T. Butler, M.D.

It's Over!

2010-01-14T00:51:00.000-08:00

January 12, 2010

To: The Rice University and Baylor College of Medicine communities

From: Presidents David Leebron and William Butler

We are writing to inform you that Baylor College of Medicine and Rice University have ended our discussions about a possible merger of our two institutions. At the same time, both institutions have agreed to develop further our existing academic and research relationship, which has grown significantly over the years.

Since we signed a memorandum of understanding in March of 2009, we have been in extensive discussions in an attempt to meet several conditions that both institutions considered to be essential for a successful merger. We joined in a thorough and deliberate process that explored the many benefits and challenges a merger would entail. With the MOU due to expire this month, the leadership of both institutions decided it is in the best interests of both BCM and Rice University to strengthen the existing relationship without a formal merger.

The months of discussion have provided a great deal of information that we will use to build on existing joint programs, such as in neuroscience and global health initiatives, and to create new ones that will best serve both institutions. A report prepared by a joint committee of faculty members from each institution identified many possibilities for collaboration that will be considered in the coming months.

We want to thank our administrative and faculty teams for their hard and creative work over the past year. Our respect for each other increased daily as we grew to know each other and each other's work better. We learned that we share similar missions and a commitment to the highest standards of education, research and community service. So, while we are bringing the merger discussions to a close, we are opening a new chapter of collaboration that will advance the field of biomedicine and improve human health.

David W. Leebron William T. Butler
President Interim President
Rice University Baylor College of Medicine

Faculty Plenary Meeting, Dec. 10, 2009

2009-12-11T15:27:00.000-08:00

Date: Tue, 01 Dec 2009 14:21:26 -0600
From: Duane Windsor
To: SEN-FAC@rice.edu
Subject: Senate notice (faculty plenary meeting; faculty survey; information links)

Dear Faculty Colleagues,

A petitioned special plenary meeting of the faculty is now scheduled for December 10 (3-5 pm) in McMurtry Auditorium (Duncan Hall). Information concerning order of business will be sent out as soon as finalized.

Various non-confidential documents or links concerning the potential merger can be found at three websites:

http://www.cs.rice.edu/~vardi/rice/ [you must be on campus to access]

http://staff.rice.edu/staff/RiceBaylor_Home.asp

http://preparingfuturefacultyatrice.blogspot.com/2009/10/links-on-proposed-ricebaylor-merger.html

Duane Windsor
Speaker, Faculty Senate

A Public Lecture on October 26, 2009

2009-10-23T10:53:00.000-07:00

Public Lecture (Open to faculty, students, and the general public)

The Whole May Be Less than the Sum of the Parts:
A Personal Perspective on the Rice-BCM Merger

Moshe Y. Vardi
Rice University

McMurtry Auditorium, Duncan Hall, Rice University
October 26, 2009, 4-5:30pm
Map: www.rice.edu/maps
Parking: http://parking.rice.edu/visitors.cfm
Overflow room: Duncan Hall 1064
Webcast: http://webcast.rice.edu/webcast.php?action=details&event=2048

Abstract: Rice University has been engaged since August 2008 in intense negotiations with Baylor College of Medicine (BCM) over a possible merger, motivated by the argument that such a merger "could produce many academic and scientific benefits" for both institutions. A Sept. 25, 2009, joint press release said that "We will work hard to bring our discussions to a successful conclusion over the next four months." In this talk, the speaker will offer his own analysis of the merger proposal, based on publicly available information.

Bio: Vardi is the George Professor in Computational Engineering and Director of the Ken Kennedy Institute for Information Technology Institute at Rice University. He is the co-recipient of three IBM Outstanding Innovation Awards, the ACM SIGACT Goedel Prize, the ACM Kanellakis Award, the ACM SIGMOD Codd Award, and the Blaise Pascal Medal. He is the author and co-author of over 350 technical papers, as well as two books: "Reasoning about Knowledge" and "Finite Model Theory and Its Applications". He is a Fellow of the Association for Computing Machinery, the American Association for Artificial Intelligence, the American Association for the Advancement of Science, and the Institute for Electrical and Electronic Engineers. He is a member of the US National Academy of Engineering, the European Academy of Science, and Academia Europaea. He holds honorary doctorates from the Saarland University in Germany and Orleans University in France.

Faculty Meeting on August 28, 2009

2009-09-07T12:29:00.000-07:00

Date: Tue, 25 Aug 2009 08:14:05 -0500

From: Duane Windsor

To: PRES-FAC@rice.edu

Subject: [PRES-FAC] reminder (upcoming faculty meeting - August 28)

Dear colleagues,

I am sending this reminder message that on Friday, August 28, noon-2 pm, I have scheduled a faculty meeting to hear an interim report from the Faculty Merger Review Committee (FMRC), chaired by Professor Don Morrison. The meeting will occur in McMurtry Auditorium (Duncan Hall).

The sole purpose of the meeting being called by the Speaker is to hear the interim report. (The FMRC has not completed its work and there is not yet a final report. The spring resolution establishing FMRC requires some faculty meeting to hear a report not later than early fall. So in consultation with Professor Morrison, I have established this meeting date.) The business of

the meeting will be focused solely on discussion of the interim report.

You are encouraged to attend if your schedule permits to hear this interim report.

Duane Windsor, Speaker, Faculty Senate

A Special Faculty Meeting

2009-04-10T12:48:00.000-07:00

Over 60 faculty members signed the following petition, which would result in a special faculty meeting being convened.

--------------------------------------------------------------------------------------------

Rice is contemplating a merger with Baylor College of Medicine, in what may be the most important decision in our institution's history.

When the Faculty Senate was formed, a provision was made for the full faculty to meet whenever events warrant it, upon the collection of 50 faculty signatures. In that spirit, we call for a meeting of the full faculty to discuss this merger and to air both our aspirations and our concerns.

The MOU

2009-03-26T16:21:00.001-07:00

The announcement of the MOU has moved Rice and Baylor closer to the expected merger. Here is the text of the announcement.

March 26, 2009

To the faculties, staffs and students of Rice University and Baylor College of Medicine:

We are pleased to announce that the governing boards of Rice and BCM this week approved the signing of a memorandum of understanding (MOU) that lays out a broad framework for formal negotiations about a possible merger of our two institutions.

While no decision on a merger has yet been made and many issues remain to be resolved, our boards have concluded that a closer affiliation has abundant potential benefits for both institutions, as well as for our home city of Houston. Months of informal discussions have confirmed that the missions and aspirations of our two institutions are in fact closely aligned, that both institutions would benefit in many ways from a merger and that, together, Rice and BCM could be one of the world's leading research universities.

The MOU framework will allow us to systematically and thoroughly move ahead with the next stage of discussions. Over the next few months, we will seek to address issues and concerns that have surfaced from those discussions, and we will continue to solicit input from members of our respective communities. The success of a merger, or any closer affiliation, will also depend significantly on how effectively we plan for and manage its implementation.

Baylor College of Medicine and Rice University are institutions of distinction that bring great achievements and greater potential to such a merger. Each is known throughout the world for contributions to important areas of human knowledge and service. Both are entering this conversation closely attentive to the importance of sustaining that which is great, inspired by the possibilities of expanded distinction and contribution, respectful of our values and traditions, and committed to our responsibilities to Houston and the broader society.

Thank you for the suggestions and insights that have helped shape our discussions so far. We continue to welcome your ideas going forward.

David W. Leebron William T. Butler, M.D.

President Interim President

Rice University Baylor College of Medicine

Rice-BCM Merger: Benefits vs. Risks

2009-02-23T09:36:00.000-08:00

As with all actions, one has to weigh the risks vs the benefits. The academic benefits to Rice and BCM of a merger have been discussed for ages. It is an open secret that BCM has been courting Rice for years, and Rice always has shyed of such a merger. BCM's recent financial implosion shows that previous administrations at Rice were right to avoid merging Rice and BCM. The current administration, however, seems quite enthusiastic about the merger. There has been a lot of recent internal communication about the merger, but its seems that the President and Provost of Rice have already made up their mind in favor of the merger, as they always minimize the risks and hype the benefits.

The clearet point in favor of the merger is that Rice would improve its standing in the ranking game and may move up in ranking. I'd be curious to hear what Rice faculty members think of this argument. Will the increase in size move Rice up in ranking? Is this important? Universities often denigrate rankings, while paying close attention to them. Should a merger with BCM be planned based on projected rise in ranking?

Rice Faculty Member

Rice-BCM Merger

2009-02-22T09:19:00.000-08:00

The purpose of this blog is to provide a public forum for Rice and BCM faculty members to discuss the proposed merger between Rice University and Baylor College of Medicine (BCM). The article below provides some basic background. All readers can comment on the postings of this blog. Only Rice and BCM faculty members can post on this blog. To be authorized to blog, send a request to riceufaculty@gmail.com.

Rice, Baylor Medicine closer to merger deal

Institutions just a couple months from a decision

By TODD ACKERMAN

Nov. 11, 2008

Characterizing merger talks with Baylor College of Medicine as serious, Rice University President David Leebron said Tuesday the two elite institutions should know within a couple of months whether such a deal is possible.

Leebron, who just two weeks ago termed discussions preliminary, said the process is moving ahead and generating a lot of enthusiasm but added that a series of practical problems need to be ironed out before Rice and Baylor can be brought together.

"A general prerequisite is that we're sure the medical school would be on stable and secure financial footing and that we continue to see possibilities not just for Baylor to become part of Rice but to build on the synergies that exist between the institutions," said Leebron.

He said the matter will be resolved one way or another this academic year. He said it was "not some general meandering discussion."

The comments, made to the Chronicle editorial board, marked the first time a Rice or Baylor administrator has talked substantively about the possible merger since the Chronicle published an article about it two weeks ago. At the time, Rice and Baylor issued a statement acknowledging preliminary talks but providing no details.

Rice and Baylor have had talks in the past in which the prospect of a merger came up, but they've never reached a serious stage. Such a merger would bring Rice the reputational enhancement it has long desired and Baylor the security of a university affiliation, which is often necessary to keep medical schools afloat financially.

Baylor, which severed ties with the Baptist university of the same name in Waco in 1969, is one of only 10 free-standing medical schools in the United States.

Rice would certainly give Baylor financial security. As of June 30, its endowment was $4.6 billion. As of Sept. 30, Baylor's was $954 million.

The disparity has caused some to question whether Baylor would drain Rice resources — one professor has remarked on the need to build a firewall between the two endowments — but Leebron downplayed the nearly five-fold difference. He said an endowment of about $1 billion is typical of a high-quality medical school.

But Leebron said the big question is how all the parts of the medical school — such as the hospital and clinic it is building — would fit into Rice's overall finances. He called medical schools "extremely complicated" and said the challenge will be "to organize Baylor in a way that fits both the needs of Rice and Baylor."

But Leebron also waxed enthusiastic about the proposed merger, saying that if it can be pulled off, the biggest winner would be the city of Houston.

"To have a top-ranked university and medical school that would attract companies in the area of (pharmaceuticals) and other areas would be a great addition to the city," Leebron said.

He said the reaction to the proposed merger has been positive, from institutions in the medical center to alumni to faculty across the curriculum, not just in the sciences. He said 80 percent of alumni feedback in the past two weeks has been in favor of a merger.

Though Leebron said a medical school is attractive to Rice, he added that the university is only interested in one through a merger with Baylor. Rice is "not in the market for a medical school," he said, and starting one from scratch would be "daunting financially and reputationally."

Medical schools are seen as vital to university prestige, because so much basic science funding has shifted from physics to biology. In 2007, Rice received $11 million in funding from the National Institutes of Health. Baylor received $211 million.