News Releases

UT Health Science Center and Memorial Hermann Hospital System
Renew Affiliation, Strengthen Alliance

$31 Million Building Transaction Included in Agreement

Houston, Texas, September 1, 2004 -- Officials of The University of Texas Health Science Center at Houston and Memorial Hermann Hospital System today announced an agreement that renews the commitment to Memorial Hermann Hospital as the primary hospital teaching site for UT Medical School faculty and provides the university with its first “owned” outpatient clinic space through the purchase of the Hermann Professional Building and adjacent garage.

Officials from Memorial Hermann Healthcare System and the University of Texas Health Science Center at Houston signed documents Wednesday, Sept. 1, renewing their affiliation agreement. Pictured left to right: R. Gerald Bennett (seated), Chair of the Memorial Hermann Hospital System Board; Gus Blackshear, Board Chair of the Memorial Hermann Healthcare System; Dan Wolterman, President and CEO of Memorial Hermann Healthcare System; Michael D. McKinney, M.D., Senior Executive Vice President and Chief Operating Officer of the UT Health Science Center at Houston; and James T. Willerson, M.D., President of the University of Texas Health Science Center at Houston.

The re-affiliation agreement guarantees that for the next 15 years Memorial Hermann Hospital will be the primary teaching and clinical facility where the faculty physicians treat patients, conduct research and train more than 450 medical students, residents and fellows each year. The affiliation originated in 1968.

Under the agreement, the UT Health Science Center purchases the professional building, located at 6410 Fannin St., for a total $31 million cash. Land is not involved in the sale. The building will be renamed The University of Texas Health Science Center Professional Building.

Officials from the two institutions – including James T. Willerson, M.D., Health cience Center President and Dan Wolterman, President, Memorial Hermann Healthcare System, came together for the joint announcement.

“The longstanding affiliation between our two institutions has resulted in the development of centers of excellence in heart and vascular services, neurosciences, neonatology, transplantation, orthopedics and trauma,” said Wolterman. “Over the years, we have shared in a number of clinical firsts. Together, we developed Life Flight, introduced the city’s only burn center, and opened a full-service children’s hospital. We look forward to continuing our shared commitment to quality and innovation in patient care.”

Willerson pointed out that the re-affiliation agreement ensures the continuation of the university’s teaching affiliation with Memorial Hermann, while the building acquisition is integral to the UT Health Science Center’s strategic plan for campus growth. “Purchasing an outpatient clinical building of our own underscores our commitment to acquiring the physical spaces in which our faculty, staff and students can work to improve the health of our patients and educate our physicians and nurses in training into the future,” Willerson said.

“The facility provides an excellent place for inpatient clinical research, and we are very grateful to the Texas Legislature for their support and help in this endeavor.”

Financing of the purchase includes $19.5 million in tuition revenue bonds granted by the Texas Legislature two sessions ago.

Michael D. McKinney, M.D., senior executive vice president and chief operating officer at the UT Health Science Center at Houston, said, “The purchase of Hermann Professional Building will allow the university to redirect $3 million a year, currently spent on rent, toward teaching and research.”

The UT Medical School faculty of more than 500 physicians, representing 18 clinical departments, provides full inpatient and outpatient services, not only through its multidisciplinary group practice plan, but also through its various hospital affiliations. The UT Health Science Center at Houston provided “unsponsored charity care,” or unreimbursed services to the financially or medically indigent, totaling nearly $134 million in the 2003 fiscal year.

Throughout the Memorial Hermann System, UT Physicians offer a variety of important services including echocardiogram readings for pediatric heart patients, orthopedics, maternal fetal medicine, and an innovative telemedicine program which extends cutting-edge stroke treatment to patients throughout Southeast Texas. The agreement also grants Memorial Hermann the first opportunity to accommodate any new UT Health Science Center teaching or clinical programs, including new biomedical research.

For more information, contact Media Relations.