President Lee Bollinger will announce today that he has chosen Gilbert Omenn to become the University's first executive vice president for medical affairs, a position responsible for overseeing University Hospitals and the School of Medicine.
Omenn will earn $500,000 a year for leading the University as one of its seven vice presidents. Bollinger earns $275,000 annually.
"I just couldn't be more pleased with the fact that Gil Omenn was the leader after an extensive search and that he has agreed to join us in this new position," Bollinger said.
Omenn's nomination is scheduled to be announced this afternoon and brought before the Board of Regents at its Sept.18 meeting. Omenn, who was the University of Washington's public health dean, will begin work today, but will not officially be hired until the regents' meeting.
Former interim University President Homer Neal announced the creation of the high-power position earlier this year. A search committee was formed in February to look for the best candidates to regulate a $1 billion annual budget. He will serve as the Medical Center's Chief Executive Officer and will report directly to Bollinger.
When asked about the position Monday, Omenn would not confirm his appointment, but said he was flattered to be considered.
"I think the University of Michigan is an outstanding institution that is respected throughout the nation," Omenn said. "I am very pleased to be considered for this position."
The 15-member advisory committee chose Omenn from a pool of more than 200 candidates, said Max Wicha, chair of the search committee.
"Omenn had the unique blend of qualifications to be able to fill this position," said Wicha, who serves as an internal medicine professor and director of the hospitals' cancer center. "He has very impressive medical credentials and extensive financial experience. He has a clear vision for the future of health care centers. His very keen intellect makes him really well qualified."
Omenn earned his M.D. at Harvard University and a Ph.D in genetics from the University of Washington. He joined the medical staff at the University of Washington in 1969 as a fellow in medical genetics, and signed on with the faculty in 1971. He has received awards from the National Institute of Health Research Career Development and the Howard Hughes Medical Institute.
Omenn served as a White House Fellow at the Atomic Energy Commission under Presidents Nixon and Ford. He was the associate director of the Office of Management and Budget from 1977-1981. He also served as chair of the Presidential/Congressional Commission on Risk Assessment and Risk Management.
Bollinger said Omenn was selected over finalists Joel Kaplan, chair of anesthesiology at Mount Sinai Hospital in New York, and Jack Stobo, former chair of internal medicine at Johns Hopkins University. Stobo was recently named president of the University of Texas at Galveston.
Engineering Dean Stephen Director, a search committee member, said Omenn will facilitate collaboration between schools and departments that interact with the University Hospitals.
"I think he's well qualified for the job," Director said. "What he brings is not only intellectual spirit, but also interdisciplinary experience that will work well with interacting between the different disciplines across campus."
The job won't be simple, however.
In recent years, the Medical Center has been finding ways to implement $200 million in budget cuts, due to high patient costs and the rise of Health Maintenance Organizations.
The University now will begin searching for ways to cut the final $70 million from the budget. Hospital officials said this requires that the University take new steps to downsize. Several options have been considered, including privatization and collaboration with other hospitals.
"Omenn has very important goals, externally and internally," Wicha said. "He has to make decisions about the future of the health center ...
"Internally, he needs to work on the clinical program, the teaching program and the research program, as well as other units within the University. He will have to look at appointing a dean to the medical school and a CEO of the hospital."
Wicha said he has confidence in Omenn's abilities.
"Certainly he has great experience and vision for the future of a great University," Wicha said.