"Show Me the Money:
Impact on Research"Brad Goodwin, DVM, Professor & Executive Director
Center for Laboratory Animal Medicine and Care
University of Texas
Contents: Recovery - Impact - Reimbursement - Progress Report
RECOVERY
The recovery and aftermath of Tropical Storm Allison in Houston, Texas on 9 June 2001.
Inner-city of Houston, TexasThe morning after 9 June 2001 left the city of Houston paralyzed. All highways were flooded and personnel could not get to work. This photo is right outside of downtown and shows a major highway intersection.
Interstate highway I-10 runs from Jacksonville, Florida to Los Angeles, California. This part near downtown Houston, Texas shows the depth of the water against this semi tractor trailer and one brave sole enjoying his jet-ski.
Downtown Tunnel SystemDowntown Houston is connected by a series of tunnels (helps to keep us out of the summer heat and humidity). This photo shows the volume of water in one of the tunnels and its effect on shops and adjacent escalators.
THE IMPACT ON THE MEDICAL SCHOOL COMPLEX
The total losses attributed to Tropical Storm Allison are now calculated at $102 million. This slide depicts the seriousness of this event and its devastating effects on the UT Medical School mission.
The money involved in this tragedy is enormous and almost incomprehensible. The latest estimate to replace the central vivarium is approximately $30 million alone.
The damages that resulted in disruption of medical services to patients and delay for research projects will probably never be fully realized as to the monetary impact. The entire community was affected.
The costs of recovery are staggering and dollars for full recovery are illusive.
• Over 1 million gross square feet of space in the medical school complex is out of service for at least one month as a result of storm damages and subsequent effects
• 10 million gallons of water inundated the medical school complex.
• The total facility damage is estimated at $52 million.
• The total equipment loss is estimated at $53 million.• Emergency response and outside contractors costs exceeded $10 million.
• Remediation of critical building activities is estimated at $68 million.
-The Animal Care Center was completely demolished.
-The Cyclotron was completely demolished
-The Gross Anatomy Lab was completely demolished.
• 3,200 faculty, staff and students were displaced for a month
• The estimated cost of normal business interruption is estimated at $15-20 million.
• 525 UT-Houston physicians and their 800 residents were displaced from most of their usual practice sites; instead they were deployed to hospitals and clinics all over Houston and surrounding communities. While every effort was being made to sustain excellent patient care, patients are inevitably affected by the displacement.
• The costs of emergency cleanup, business interruption and temporary facilities are estimated to be $30 million.
• The total dollar impact of this event is estimated at more than $205 million, of which insurance will only cover $50 million.
IMPACT ON RESEARCH
A statement by our University President shortly after the flood. His words are so very true.
“The development of improved diagnostic tools, more effective treatment and drugs, and preventive measures for heart disease, stroke, respiratory diseases, and other killers has been delayed.”
~ Dr. James T. Willerson, President
University of Texas - HoustonAll animal based research was delayed, but 18 months later, most projects are back on track and biomedical research is once again strong and productive.
• An estimated $105 million in sponsored research awards has been affected
• All animal-based research has been delayed.
• Almost 4,700 animals were killed in the flood. The financial loss in animals alone currently is estimated at $7.4 million dollars. These included:
– Genetically engineered mice bred to be susceptible to cardiovascular disease, asthma, immune deficiency diseases or neurological disorders
– Monkeys trained since infancy to do certain cognitive functions for the study of normal and abnormal brain development, i.e., Autism
– Rabbits and rats treated with new drugs for many months to determine the long- term effects of treatment. i.e., Gene Therapy
Recovery is slow at best, but determined investigators are redeveloping programs and projects at a record pace. The cyclotron facility will not be replaced at this time.
• Losses that could take as long as three to four years to redevelop at a cost of more than $7 million include:
Cell cultures developed from human tumors or tissues used to study effects of new drugs or cancer cell growth
Valuable human blood and urine research samples from a variety of diseases that were under investigation;
Valuable chemical reagents and unique bacterial strains used to study diseases.
The cyclotron facility is a total loss. Radioactive chemicals produced here are critical to a number of sophisticated research and clinical applications.The borrowed and leased space has been the life-saver of UT Medical School faculty research projects. Without our neighbors, most studies would have been permanently terminated.
• Many faculty are feverishly working in borrowed and leased lab space to meet the requirements of their grants.
• Flooding also resulted in significant equipment losses, including MRI machines and the data associated with them. MRI, data complied over many years, was used to learn how strokes and blood clots form and block vessels. Images were also used to study both Attention Deficit Hyperactivity in children with normal and abnormal brain development and the impact of drug dependence on cognitive functions.
HOW DO WE RECOVER?
The sources for recovery funding are listed below.
• Insurance
• Federal Emergency Management Agency (FEMA)
• Institutional Administration
• NIH Grants & SupplementsThe insurance settlement cap is still being negotiated after 18 months. FEMA dollars are available, but every penny must be painstakingly justified and this is not an easy process. The dollars needed to fully recover will not be available through insurance and FEMA alone.
University of Texas has hired a consulting firm with major experience with FEMA (James Lee Witt & Associates) to help with negotiations.
• FEMA dollars are worth $0.75
• Insurance dollars are worth a dollar
– Insurance payout cap is $50 million
– Insurance settlement above cap is being negotiated
ONGOING RECOVERY
Recovery is a very long process………….much longer than one could ever imagine!
Immediate ~ 1 year
Intermediate ~ 1-5 years
Long-term ~ 5-7 yearsIMMEDIATE
Cost for –
• Leased space (MDA & Storage)
• Replacement of Equipment
• Repair of Equipment
• Leased Cage Washer
• Renovation of Medical School Labs for Animal HoldingLeased space is being paid out of operating funds as we attempt to convince FEMA to reimbursement us.
Replacement and repair of equipment has been approved by FEMA in most cases
The leased cage washer in the MSB basement became functional after one year of negotiations.
TO MAXIMIZE REIMBURSEMENT BY DEPARTMENT
• Treat like insurance claim loss
• Damaged or total loss – put everything on list.
• Complete FEMA form for consistency
–FEMA must approve each item claimed
• Prepare list of equipment for salvageThis is critical information. Write down everything! Be consistent and be detail oriented if you want approval for your requests for funding (the first time around!)
MEDICAL SCHOOL FEMA REPLACEMENT Department of: _______________
REIMBURSEMENT BY DEPARTMENT
Insurance adjustors and FEMA representatives are not familiar with the unique equipment needed to successfully operate an animal care and use program. Be sure to list all fixtures and specialty items in great detail to enhance your chances for funding of these items.
List All “Fixtures” and “Specialty” Items for Animal Care, e.g.
• Metal doors with viewing glass windows
• Automatic watering systems
• Stainless steel door kick plates
• Automatic light timers
• High temperature alarms
• Security punch locks & card access
• Cleaning implement wall holders
• Eye wash stations/shower stations
• Built in modular cubicles
• Bumper guards
• Vac/Air/Gas and RO water lines
• Casework (built-in)
• Operating room lightsBe sure to justify each and every animal in tremendous detail. Also be sure to establish a value for the animal especially if it is on a chronic, long term study. Justify everything to the fullest extent possible to increase your chances for approval of your funding requests.
List All Animals Lost and Justify Their Value
• Breed
• Quantity
• Value
• Justification
• Commercial source (vendor)
• Commercially available (yes or no)
• Commercial price
• Loss Value
(common base price/unit x qty)
e.g., $9,000 (value)– $6,000 (price) x 6 = $18,000 (loss value)
INTERMEDIATE
All of these projects should be paid (75%) by FEMA as they are part of recovery and replacement of the existing facility. New BSL-3 is on the second floor of the MSB and should become functional by the end of 2002.
Cost for –
• Support Functions in Basement
• New Surgery and Animal Testing/Holding
• New BSL-3
PERMANENT
All of these projects should be paid through FEMA as we attempt to recover and replace the lost facility.
Cost for –
• Replacement for 40,000 sq. ft. of Space
• Renovation
• New Construction
These arrangements are working very well and investigators are once again happy and productive. It’s not easy on the animal care staff however!
Many lost functions have been restored and business is almost back to normal. Permanent replacement of these three functions is probably two years distant.
Temporary cage washing facility commenced in late June 2002 and the replacement vivarium is still in the programming stages. Cremator was repaired in place in the basement and is functional.
BSL-3 should be operational by the end of 2002, elevators are all replaced, and site mitigation activities are ongoing.
• Animal research reestablished with temporary housing of large animals at M.D. Anderson Cancer Center (monthly lease)
• 22 rooms on various floors of the Medical School Building have been converted to house smaller animals
–Very labor intensive• Temporary Gross Anatomy lab built off-site
• Temporary employee lounge & student lounge in old cafeteria area
• Temporary Learning Resource Center set-up in 1st floor classroom with multiple computers• Deconstruction of basement and ground floor just now beginning (April 2002)
• Replacement of ground floor air-handling units
• Replacement of MRI (research) from basement• Complete “redo” of animal care, converting the penthouse into a double-decked animal center ( not started yet)
• Renovating non-housing activities related to animals, such as cagewashing & crematory in basement
– Crematory functional after repair
– Temporary cage wash due by mid-May 02• Design and build special higher level infectious disease facility on second floor (BSL-3)
-100% design completed (April 2002)
• Replace elevators (ongoing now)
• Site mitigation activities such as waterproofing, basement flood doors and protection
GOOD NEWS
UT-Houston has received $6 million from NIH as two grants to aid in reconstuction of animal facility for nonhuman primates and genetically engineered rodents –
• Major team effort
• Timing criticalThese two grants were a major accomplishment and took a devoted team to bring it together. The hard work and late nights really paid off and we are very grateful to the NIH for their support of our animal care and use programs.
A new Institute for Molecular Medicine is almost funded through development efforts and this facility will include a new vivarium for rodents.
Regarding new facilities for the Medical School Campus
• No definite plan as of yet
• UT-Houston has prelimary designs for a new $150 million, 200,000 square foot research facility
Funding from UT permanent University funds and local Philantropy from New Frontiers Campaign
TEXAS MEDICAL CENTER INSTITUTIONS
A summary of what has been happening to our neighbors in the Texas Medical Center. THI may be moved into their new facility by the end of 2002.
• Baylor sues insurer for storm losses
– Related to deaths of 30,000 rodents
– Research losses are incalculable
– Losses exceeded $100 million in destroyed research materials
– Insurance cap is $50 million
• Texas Heart Institute (St. Luke’s)
– Might have been 1st site to implant world’s first self-contained mechanical heart instead of Jewish Hospital in Louisville, KY but, Allison washed away the THI hogs that were to be implanted with the device.
– Expect renovations to be completed by October 02• M.D. Anderson Cancer Center (MDA)
– Scientists from UT-Houston, Baylor and THI brought closer to counter parts at MDA while sharing facilities
– No storm damage
• University of Houston
– All damages mitigated
– Back to normal operations
TAKE HOME MESSAGE
Don’t ever forget to Document, Document, Document
Be patient and I mean be really patient (also described as taking baby-steps)
It really will get better. Do not let the slow progress get you down. This type of event and tragedy builds strong teams and loyal relationships at every level.
• DOCUMENT
• BE PATIENT
• IT WILL GET BETTER!!!!
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