Methodist Healthcare, U of M Partner to Form Health Care Economics Center
For release: Mar. 10, 2003
For press information, contact Curt Guenther

Methodist Le Bonheur Healthcare and The University of Memphis (the U of M) have announced the creation of the Methodist Le Bonheur Center for Health Care Economics. Dr. Shirley Raines, president of the U of M, announced that Cyril Chang, Ph.D., has been named director of the Center. This is made possible by a $1 million gift from LHS, Inc.

LHS, the former parent holding company of Le Bonheur Children's Medical Center and its subsidiaries, transitioned into a grant-making organization following the 1995 merger of Methodist Healthcare and Le Bonheur Children's Medical Center.

"We are very excited to once again partner with the University for such a worthwhile cause," said Gary Shorb, president and CEO of Methodist Healthcare. "The Center for Health Care Economics will help us improve Health Care and better understand the economic impact of the services we provide."

In late 2001, Methodist and the University announced a partnership to develop the Methodist Healthcare/Maurice Elliott Leadership Institute. This, too, was made possible by a grant from LHS, Inc.

The Center for Health Care Economics will be housed at the U of M in the Fogelman College of Business and Economics. It will help improve the efficiency of governmental medical programs and study the impact of regional and state trends in health care.

"We hope to improve the efficiency of TennCare and study the costs and benefits of health-related programs in the corporate world," said Shorb. "Our goal is to provide the best possible health care to our patients and this Center will help us achieve that goal."

Dr. Shirley Raines said, "Health care is one of the most pressing concerns of our nation and our state. President Bush and the United States Congress, and Governor Bredesen and the Tennessee legislature are grappling with the issue of how to provide quality care at affordable prices. This partnership between Methodist Le Bonheur Healthcare and The University of Memphis will be a very important part of the solution to a myriad of health care issues.

"The Center for Health Care Economics, by continually monitoring and analyzing health care issues locally and throughout Tennessee, will make it easier for health care agencies to meet the changing needs of the health care industry and the citizens who depend on that industry. The University of Memphis is pleased to work with Methodist Le Bonheur Healthcare in this endeavor, and we are all grateful to LHS, Inc., its board of directors, and the executives of Methodist Le Bonheur Healthcare for their continued recognition of the invaluable role that the University plays in studying the complex issues of health care economics.

Cyril Chang is a professor of economics at the U of M and a voluntary professor in the department of preventive medicine in the College of Medicine and department of community nursing at the University of Tennessee Health Science Center. He came to the U of M in 1981.

Chang received an undergraduate degree in economics from National Chengchi University in Taiwan in 1969 and a master's degree in economics from the U of M in 1972. He went on to receive a doctorate degree in economics from the University of Virginia in 1979.

"Cyril is an accomplished academician who is knowledgeable regarding state and local health issues," said Mr. Shorb. "The local health industry often looks to him for dialogue and solutions, so he is a natural choice to head the Center."

"Health care is something that touches all of our lives," said Dr. Chang. "Yet health care seems to be always in crisis. The doctors in New Jersey and Mississippi are on strike, nurses are in short supply in major cities, and here at home our TennCare program is in a constant state of flux. These problems and their root causes require extensive research before developing effective policy solutions.

"The purpose of the new Center for Health Care Economics is to study emerging Health Care issues that affect Memphis and the State of Tennessee. They include the high costs of health care and insurance premiums, the ever-present TennCare problems and their impacts on our community, and mental health care needs of high-need individuals. The Center will serve both as a catalyst for health care research within the university community and a bridge between the University of Memphis and the external communities that it serves."

Gene Cashman, president of LHS, said, "This is Phase 2 of LHS' focused investment and partnership with the University of Memphis and Methodist Le Bonheur Healthcare to develop intellectual and human capital. Launching Phase 2 was predicated on the successful planning and implementation of Phase I, the Maurice Elliott Leadership Institute. That institute has been successfully launched, so we are very excited to begin Phase 2 of the 5-year, $5 million commitment.

"LHS and its partners recognize that we need to sharpen our focus on health care economics and the implications of our health care expenditure decisions. Right now, TennCare is a top-of-mind economic issue, but there are many other facets of health care resource allocation that need to be examined. We need to look at those expenditures in terms of investment, and what's the best return in community health benefits. This not only includes the resources used to deal with sickness and disease, but must also include the costs and benefits of money spent on fitness and wellness, violence, homelessness and other real issues that affect the community's health and well-being. The Methodist Le Bonheur Center for Health Care Economics will be an emerging center to look at those issues. That type of research and education will provide real value to the entire community.

More News Releases