The budget crisis is driven by the economic downturn and 80 percent fewer new patients than expected. OHSU Hospital anticipated 5 percent growth in the current year, but so far patient volumes have increased by just 1 percent.
OHSU further attributed its financial crisis to a rise in growing demand for uncompensated care, lower state funding and an economic climate in which research grants have fallen. It's also had significant investment losses.
The university ended 2008 with $345 million in its endowment, down 25.5 percent from its $461.4 million balance at the end of 2007. OHSU noted it outperformed the S&P 500, which dropped 37 percent over the same period.
OHSU previously froze hiring and salaries, reduced pension plan contributions, postponed capital plans and began reducing staff. Senior executives, including Robertson, took pay cuts and are forgoing incentive pay.