U. Trustees close winter session

As the Board of Trustees concluded its winter meeting on Friday, the decision not to sell any part of the University of Pennsylvania Health System sat at the top of the agenda. This decision comes after two months of deliberations by a special committee of Trustees, administrators and faculty who were appointed to develop strategies for handling the financial problems of the beleaguered Health System. The Health System lost over $300 million dollars in fiscal years 1998 and 1999, but has been making a recovery in recent months. According to University President Judith Rodin, the decision reflects Penn's commitment to the Medical School, which would have suffered if Penn had decided to sell the Health System. "We are deeply committed to the academic mission," Rodin said at the meeting. Instead, the Trustees approved a measure to move forward with creating a new, not-for-profit Health System organization under Penn's control. The Trustees also approved a resolution concerning the Campus Development Plan. The plan is one part of the administration's Agenda for Excellence, a 1995 program that enumerated nine goals for the University to achieve by the year 2000. The Agenda is coming under a full review later this year, and the Campus Development Plan is the first section to be fully analyzed. The resolution approved the newly formulated Campus Development Plan 2001, which intends, among other things, to select locations for future facilities, investigate fundraising strategies and develop University initiatives in surrounding neighborhoods. Trustee William Mack, a member of Wharton Class of 1961 and chairman of the Facilities and Campus Planning Committee, presented the plan to an open session of the Trustees on Friday. Mack also presented a decision to improve fire safety systems around campus, including the installation of sprinklers in several dormitories. "There is a five-year plan that hopefully is going to take less time, to sprinkle all of the high rises and all of the residences that" do not currently have sprinkler systems, Mack said. Mack also told the Trustees that offers are being received from several companies to revive the stalled Sundance Cinemas project on the corner of 40th and Walnut streets. "I'm happy to say that we're finally able to entertain offers from other firms," Mack said. The Trustees also heard a report from Executive Vice President John Fry concerning the financial state of the University. As was reported Friday, Penn's endowment is up $116.5 million from FY 2000, when it fell 1.8 percent. Also, Fry told the Trustees that the worth of Penn's plant assets -- namely buildings and real estate -- has increased $67.4 million since June 30. According to the financial report, these assets increased with the creation of new facilities such as Perelman Quad and Hamilton Square and renovations to the Quadrangle.