Trustees on Thursday approved construction of a 185,000-square-foot University of Arkansas for Medical Sciences orthopedic and sports medicine facility in Northwest Arkansas, describing the $85 million project as helpful in signing Razorback athletes.
"That will be a great recruiting tool for athletes that we're recruiting. I think you take an athlete by there and show them how they're going to be taken care of, in that manner -- that's got to be big-time," Steve Cox, a trustee and a Jonesboro businessman who played football for the Razorbacks, said Thursday at a two-day meeting of the University of Arkansas System board of trustees.
The facility will further expand UAMS' presence in the region, with the board Thursday also approving creation of a three-year medical doctor degree program based in Fayetteville rather than at the main medical school campus in Little Rock.
Trustees on Wednesday praised the three-year program, which will provide an accelerated path for students seeking to become primary care physicians.
The new degree track, shorter than the typical four years of medical school, is set to launch this fall.
The University of Arkansas, Fayetteville earlier this month announced a four-year agreement effective Jan. 1 for UAMS to begin providing daily medical coverage to the more than 465 athletes in its athletic program.
UAMS Chancellor Cam Patterson, at the meeting Thursday, said the new facility fits with efforts to bring more health services to the region. He also described the facility as tied to serving Razorback athletes.
"This is part and parcel of our agreement with UA-Fayetteville to manage the Razorback athletes and provide world-class orthopedic and sports medicine services in Northwest Arkansas. The building will include all the facilities that are needed for a world-class sports medicine program," Dr. Patterson said, including a pool and a gym, as well as operating rooms.
In a phone interview, Patterson said the facility is projected to generate a profit and that UAMS would have pursued it even without a tie-in to athletics.
"I can't speak for the board, but we would be moving forward with this," Patterson said. "Having said that, having a world-class facility with excellent faculty trained in orthopedics and sports medicine is really going to be a competitive advantage for our Razorback teams."
UAMS in 2019 expanded its orthopedic health care into Northwest Arkansas through a partnership with an existing practice, according to an October 2019 announcement. Employment records released to the Arkansas Democrat-Gazette showed that UAMS from late 2019 through mid-2020 hired seven orthopedists or sports medicine doctors as clinical assistant professors at an average salary of about $500,000. They work in buildings under lease, according to board documents from last year.
UA-Fayetteville last year cut short a competitive bidding process for student-athlete care services. Orthopedic services had previously been provided by Fayetteville-based Advanced Orthopaedic Specialists.
A spokesman for UA-Fayetteville released to the Democrat-Gazette a copy of the 21-page memorandum of understanding between the university and UAMS for the care of UA-Fayetteville athletes.
The agreement details that insurance provided to athletes through UA-Fayetteville group plans -- or otherwise -- is to be billed by UAMS. Remaining costs, such as co-payments and deductibles, are to be charged to UA-Fayetteville. A fee schedule is also established for any uninsured athletes, set generally at 115% of Medicare rates.
UA-Fayetteville officials signed off on the agreement earlier this month, while Patterson's signature is dated Thursday. The agreement specifically refers to the new orthopedic facility, stating that UA-Fayetteville may terminate the deal without notice if "UAMS fails to break ground on a surgery center operated by UAMS in Benton and/or Washington County" within two years.
TRUSTEES TALK
Trustees on Thursday discussed having UAMS provide care to UA-Fayetteville athletes.
"I think it's going to help us a lot to have UAMS people involved and not outsiders. There will just be a little more personal involvement, from a school standpoint," said Sheffield Nelson, a Little Rock attorney.
Ed Fryar, a poultry entrepreneur from Rogers, also brought up how the facility could factor into how the families of prospective athletes view UA-Fayetteville.
"You take the parents by there and show them how their sons and daughters will be taken care of," Fryar said.
Morril Harriman, a Little Rock attorney, was the only member of the 10-person board not at Thursday's meeting, which was held in Little Rock with several trustees and speakers participating online.
Among large public universities in nearby states, arrangements vary, but it's not uncommon for university health systems to be heavily involved in the care of college athletes.
MU Health, the hospital system for the University of Missouri, provides care to Tiger athletes, a university spokesman said, with no bidding process involved in the selection of health care services. The University of Kansas formed a partnership that includes its health system as well as an outside provider to ensure care for Jayhawk athletes.
Elsewhere, the University of Tennessee has a contract with Knoxville Orthopaedic Clinic to provide services to athletes.
With UAMS based mainly in Little Rock, the memorandum of understanding specifically refers to care for UA-Fayetteville student-athletes being provided locally.
"Until the UAMS NWA Facility is operational, UAMS shall make its best efforts to provide the expected standard of services at other medical care facilities and/or surgery centers located in Washington and/or Benton County, Arkansas," the agreement states.
In October, UAMS officials presented documents to the trustees proposing a lease agreement for a new orthopedic site. Those documents referred to "a projected $3-4 million margin on the orthopedic practice alone."
The facility's preliminary building plan calls for eight operating rooms and four additional "shelled" operating rooms that could be finished at a later date, according to documents presented Thursday.
Patterson, speaking by phone Thursday, said there's an expected operating profit margin based on "continuing to do the same business that we're currently doing," not factoring in possible growth with the new facility.
SITE UNKNOWN
The trustees Thursday approved UAMS' top choice to design the building, Marlon Blackwell Architects, along with DSC Architects and general contractor Nabholz Construction.
Board documents did not disclose the location of the facility. Patterson said a land purchase will be required, which is included in the project's estimated cost of $85 million. He declined to say what sites are under consideration.
UAMS plans to issue bonds to cover the cost, perhaps along with some philanthropic gifts, Patterson said. No gifts have been announced.
Patterson said the goal is to have the facility ready for patients by 2023, adding that he hopes the project breaks ground later this year.
He added that the size of the facility is "not set in stone." Board documents presented this week describe the facility as having "specialty clinics" for sports performance, physical therapy, orthopedics, imaging, research and education. It's not considered to be a hospital providing in-patient services, with only "a limited number of patient beds," according to board documents.
The previous idea of leasing a building was scrapped in part because "it wasn't the usual process," Patterson said. No cost estimate for the proposed 30-year lease was ever made public.
"I think it makes sense from a standpoint of being transparent and having an open bidding process" to build a new facility, Patterson said, adding that "the board all felt more comfortable with doing that."