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Minutes

DREXEL/MCP HAHNEMANN MERGER TRANSITION TEAM

Meeting No.11
February 14, 2002

        The meeting began at 5:08 p.m. in the President's Conference Room, Drexel University. The purpose of the meeting was to discuss the sections of the draft Report and Recommendations that had been earlier circulated.

        The Team discussed the term of appointments for MCPHU faculty, and whether it was appropriate for them to share the 9-month appointments (and, for tenured faculty, salary guarantees) that are extended to Drexel's faculty members. All clinicians necessarily work on a 12-month appointment, as do basic scientists and some members of the CoNHP faculty. There was no consensus about whether basic scientists and CoNHP faculty ought to be required to go to 9-month appointments, but that the MTT should not propose such a change without further investigation and consideration. After extended discussion, the Team therefore decided to modify its earlier position by acknowledging that certain appointments were likely to be for 12-month terms; and the Chair will rewrite that section of the draft report and re-circulate it to the Team.

        The Team also discussed the rate of return of indirect costs. The common rate is between 15-20%. Even so, if we are to inspire more research (and speed the process of becoming a Carnegie I research institution), we should do more to prime that pump. If the policy is phased in as the MTT proposes (that is, for all grants awarded on and after July 1, 2002), PIs and Department Chairs will only begin to see funds returned to them in FY04, since the reconciliation of costs occurs only after the end of the fiscal year. Accordingly, the Team agreed that the return rate ought to remain at 32% for the next five years (most grants have a 2-5 year cycle) and re-evaluate the rate based on the experiences gained over that period.

        The Team considered the issue of busing, and agreed that the merged University ought to begin by offering, as a minimum, 16-hour service, 5 days per week, every half hour between Drexel and Hahnemann.

        This proposal has not been "costed out" to determine if the ideas are financially feasible, and it has not been discussed with the Administration. It is, however, an approach that would satisfy the MTT's Principles.

       The Team considered and approved a proposal developed by IRT for upgrading and creating new videoconferencing facilities at Drexel. Drexel has limited video-conferencing capability, but has several locations which are prime for equipping to support video-conferencing and a wide bandwidth that is being under-utilized. There are three forms of video conferencing addressed in the proposal: conferencing requiring a dedicated ISDN line, conferencing making use of the internet, and video streaming web casting.

        The Team also discussed how the Universities might make sure that there were funds available to create the academic synergies that are anticipated. The Team is persuaded that, for the synergies of the merger to be realized, the University must make the necessary investments. In many respects, what is needed is the equivalent of a "venture capital fund" that can be used to invest in projects that indicate an appropriate return to the University. Where income can be generated, the University should expect repayment. The Team agreed that the University should have a "Synergies Fund," created from unrestricted capital accounts or endowment, in the amount of $10 million, to be operated as a venture capital fund and administered by a "Synergies Board" to be appointed by the President, with its members including University administrators and faculty; and that the Synergies Board be required to report, no less than quarterly, to the Drexel Board and University communities, on the proposals that have been funded and the results achieved thereby.

      Finally, the Team discussed the format of the Report.

The meeting was adjourned at 8:12 p.m.

Tobey Oxholm
Chair and Secretary