University of Virginia Library

HOSPITAL

In accordance with instructions of the Board at the last regular meeting, the President
reported that he had talked to the Governor concerning the projected deficit in the operation of
the hospital for the current year. The Governor had stated that he felt that a part of the hospital
should be closed only as a last resort. The Governor has asked the State Auditor of Public
Accounts to make a comparative study of the operating cost of the University Hospital with the
Medical College Hospital. Upon completion of this study the Governor will decide to what extent a
deficit authorization should be made.

Mr. Gay inquired if this was a solution to the problem or only temporary relief. The
President stated that this was only a temporary solution, but that the Governor planned to take up
the matter at the next session of the Legislature. Mr. Gay stated that he would not like to see
the hospital separated from the University but he thought it was important that the Legislature
recognize that the care of indigents is a public health function.

Under date of June 4, 1952, Governor Battle wrote The Rector and members of the Board,
pointing out the responsibility of the Board should a deficit be incurred in the operation of the
institution. The Rector's reply to the Governor's letter is set forth below, together with the
response of the Governor.

Honorable John S. Battle
Governor, State of Virginia
Richmond, Virginia
Dear John:

I acknowledge receipt of your letter of June 4, 1952, addressed to the members of the
governing boards and to the heads of all State institutions and agencies, informing them of the
provisions of the law regarding exceeding appropriations which have been allocated to the different
State agencies, and warning the members of these governing boards that a certain prescribed
procedure must be followed for additional appropriations.

Pursuant to your letter, I this morning talked to Colgate W. Darden, Jr., about our
situation at the University and have been informed by him what I already knew from my own knowledge
to be the fact, that we have not exceeded any of the appropriations made for us unless your
written consent has been obtained.

There is a single exception to this situation which I think ought to be brought to your
notice, and about which I think you are already informed. I refer to the University of Virginia
Hospital situation. We have labored long and hard to control expenditures of this situation.
The reason we have not been successful is that the hospital is burdened with a great number of
indigent cases sent to the hospital mostly by the adjoining counties of Albemarle, Greene and the
cities of Charlottesville and Staunton. It is impossible for us to turn away meritorious cases
in a State institution. Full advantage of our weakness in this respect is taken by other institutions
and municipalities. As a result, the University of Virginia Hospital is exceeding the appropriation
made for it. I see no way that the situation can be controlled nor do I think that
any official of the University of Virginia or any member of the Board of Visitors should be held
responsible for this.

Actually, the State of Virginia is contributing to defray the expenses of those who are
ill and sick and who cannot pay for their hospital services. I wish I knew the answer to this
situation, but of one thing I am certain, and that is the fault should not be laid at our door.
The only connection of the hospital with the University of Virginia, as you know, is that it provides
a means of assisting in the education of young doctors. In doing this, it provides an absolutely
essential thing for medical education. Yet it has developed into what is really a State
health center, and I sometimes wonder whether the University of Virginia Board of Visitors should
be charged with the running of such an institution.

Please excuse me for going into the details of this situation, but I do not see how I
could answer your letter without calling your attention to the situation which exists in the
hospital.

With my kind regards to you,
Sincerely yours,
/s/ Barron F. Black
BFB:n

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Honorable Barron F. Black
819 Citizens Bank Building
Norfolk, Virginia
Dear Barron:

Thank you for your favor of June fifth.

I appreciate your writing me so fully on the subject outlined in your letter and, of
course, am familiar with the situation.

With my personal regards and every good wish, I am
Cordially yours,
/s/ John S. Battle

At its last meeting the Board asked the President to discuss the projected deficit with
the Governor and request instructions. In accordance with the direction of the Governor, the
hospital is being operated at a deficit, pending the completion of a study of operation cost by
the State Auditor of Public Accounts.