Steven A. Wartman, MD, PhD February 9, 2007 President/CEO …

Steven A. Wartman, MD, PhD             February 9, 2007
President/CEO

Board of Directors
                                       The Honorable Kent Conrad, Chair
Michael V. Drake, MD
Chancellor                             Senate Budget Committee
University of California, Irvine       624 Dirksen Senate Office Building
Chair
                                       Washington, DC 20510
Arthur Rubenstein, MBBCh
Executive Vice President for the
Health System
Dean, School of Medicine
University of Pennsylvania             Dear Senator Conrad:
Chair-Elect

Frank B. Cerra, MD                     On behalf of the Association of Academic Health Centers (AAHC), I am
Senior Vice President                  writing to oppose the funding proposed for health and biomedical
for Health Sciences
University of Minnesota                research programs in the President's budget for FY 2008, which, if
Immediate Past Chair                   passed, will threaten the resources needed for the nation's highest
John Fernandes, DO, MBA                priority--the health of its people. We urge you to ensure that the
President
Oklahoma State University              budget for FY 2008 protects and enhances the nation's critical health,
Center for Health Sciences             science, and higher education infrastructure upon which our national
Antonio M. Gotto, Jr., MD, DPhil       security depends.
Stephen and Suzanne Weiss Dean
and Provost, Medical Affairs
Weill Medical College and Graduate     The President's budget request includes a wholly inadequate level of
School of Medical Sciences
Cornell University
                                       funding for biomedical research, more than $100 billion in spending
                                       reductions for Medicare and Medicaid, and deep cuts in vital health
Jane E. Henney, MD
Senior Vice President and
                                       workforce training programs. These cuts are misplaced and undermine
Provost for Health Affairs             the essential work of the nation's academic health centers. The budget
University of Cincinnati
                                       would: (1) reduce our ability to sustain cutting edge research focused on
Philip A. Pizzo, MD
Dean, School of Medicine
                                       the most lethal and debilitating diseases; (2) limit access to care for
Stanford University                    elderly and vulnerable populations who depend on Medicare, Medicaid,
Sheldon M. Retchin, MD, MSPH           and the State Children's Health Insurance Program (SCHIP), and; (3)
Chief Executive Officer VCU Health     limit opportunities for careers in the health professions that are so
System, Vice President for Health
Sciences                               needed to sustain our economy.
Virginia Commonwealth University

Fred Sanfilippo, MD, PhD               The National Institutes of Health (NIH) drives critical research delivering
Senior Vice President and
Executive Dean for Health Sciences     breakthrough treatments for a multitude of diseases. Yet for the fifth
Chief Executive Officer, OSU Medical   year in a row, the National Institutes of Health (NIH) faces static or
Center
The Ohio State University              decreased funding levels. Without an increase in funding, NIH cannot
Larry J. Shapiro, MD                   sustain its mission or maintain America's preeminence in science in the
President, Washington University       global economy. We strongly recommend that funding for the NIH
Medical Center, Executive Vice
Chancellor for Medical Affairs and     in FY2008 be increased by at least five percent to prevent further
Dean, School of Medicine               erosion of the agency's work.
Washington University

Andrew A. Sorensen, PhD                Medicare and Medicaid cuts proposed by the President would total more
President
University of South Carolina           than $100 billion over five years. Substantial reductions in


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The Honorable Kent Conrad
Page 2
February 9, 2007

reimbursement to hospitals and other health care facilities undermine the
ability of "safety net" institutions to care for the nation's most vulnerable
populations. In addition, while the budget includes a modest increase in
funding for SCHIP, this boost appears to put at risk federal support for SCHIP
programs that have extended eligibility above 200% of the federal poverty
level. It is also insufficient to support the costs of millions of currently eligible
children who are not enrolled in SCHIP. We oppose these
recommendations and urge the Budget Committee to protect the vital
funds in these programs from further reductions.

Practically all of the health professions face serious and persistent shortages
that will only worsen as the U.S. population ages. Yet the budget proposes to
eliminate nearly all of the health professions education programs authorized
in Title VII of the Public Health Service Act and sharply reduces funding for
nursing programs in Title VIII as well. These cuts will exacerbate health
workforce shortages in future years. We recommend that the Budget
Committee provide at least $550 million for FY 2008 funding of
programs authorized in Titles VII and VIII of the Public Health
Service Act to educate and train a health care workforce that meets
the public's needs.

Moreover, we are especially concerned with the President's proposal to end
federal support for Medicaid graduate medical education payments and the
elimination of direct billing by teaching hospitals for indirect medical
education payments for patients enrolled in Medicare Advantage plans. We
urge that the budget resolution should not assume savings from the
proposed cuts in graduate medical education funding.

The health and economy of our nation depend on a well-educated workforce,
access to health care, and financially viable providers--all guided and
supported by leading biomedical research. We believe these priorities must
be supported by the congressional budget resolution for FY 2008.

The Association of Academic Health Centers, a national non-profit
organization dedicated to improving the nation's health and well-being
through the vigorous leadership of academic health centers, represents more
than 100 institutions nationwide.

We request your support for the recommendations we have made and
express our appreciation for your leadership in these matters.

Sincerely,



Steven A. Wartman, MD, PhD
President/CEO