The Ohio State University Wexner Medical Center Board budget for the 2026 fiscal year, starting in June shows federal changes to grants will cost the university's college of medicine.
Wexner Medical Center Chief Financial Officer Richard Silveria said at a board meeting this week, the college of medicine expects to see $15 million less money from federal research grants in the next fiscal year.
"The college of medicine, because of some anticipated, but not uncertain, contraction and indirect cost recoveries for research grants and the grants themselves, we're anticipating a loss of 15 million," he said.
However, the overall budget for the medical center is in good shape. Expenses are up, but so is revenue. It also has more than a billion in cash reserves.
"This plan does achieve the long-range financial projection that was presented earlier this year," Silveria said.
The budget is expected to have a gain of $200 million in 2026, Silveria said. Though, that figure was closer to $300 million in 2024 and 2025, according to information he presented in the meeting.
"The big story in the budget for next year is the opening of the tower," Silveria said.
"The the completion of the inpatient medical tower in 2026 is driving up expenses, Silveria said.
"Revenue is growing at 8.1%, but there's a little bit more pressure on total expenses growing a little faster. And it's really related to the hiring we have to do with staff out that tower. We're looking at about 1,000 FTEs (full-time employees) that we're gonna have to add over time to fully operationalize that tower, including some additional physician faculty and some advanced practice practitioners like nurse practitioners and certified nurse anesthetists," he said.
Board President Les Wexner said the tower will pay off in a few years.
"But what you'd see is a hockey stick effect in the second year after you have the pre-opening expenses, you get the efficiency of the expanded staff and you have beds full," he said. "For years two, three, and four after the tower opens, you should see what I'm anticipating is a very strong performance financially because we have the foundation for it. And that also should help us gain market share."
