$20M in NOSM money ‘in jeopardy’ because of Laurentian insolvency, says dean of medical school
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The dean of the Northern Ontario School of Medicine (NOSM) can’t say much about the situation unfolding at Laurentian University.
But she does acknowledge the medical school has close to $20-million tangled up in the Laurentian insolvency.
Dr Sarita Verma, NOSM dean and CEO, is unable to comment on the situation at Laurentian due to the Companies’ Creditor Arrangement Act (CCAA) process. However, NOSM is listed as one of Laurentian’s creditors in the insolvency documents.
Last week the province announced that NOSM would separate from Laurentian University in Sudbury and Lakehead University in Thunder Bay, and would become an independent institution, granting its own degrees.
Verma says she did not ask the government to declare the school a stand-alone institution, and the announcement took her by surprise. But she understands why the government made the decision.
$20-million in jeopardy
Financially, NOSM had a $1.5 million structural deficit, and normally would get relief from the government. That didn’t happen this year because of COVID-19.
Then Laurentian filed for insolvency from its creditors under the CCAA.
“Laurentian’s, let’s just say ‘use’ of our funds — which were $1.6 million of tuition, and they hold about $14 million of our endowments,” Verma said.
The interest from the endowments normally provides bursaries for low-income students, but Verma says the future of those bursaries is now uncertain.
“For a medical school that has an annual budget of less than $50-million, having close to $20 million in jeopardy is a challenge,” she said.
“So ask yourself the question, if you were the government and you were looking at this situation, what would you do?”
“I did not ask for this, I did ask [the government] for money, but they weren’t going to give me any,” Verma added.
NOSM not leaving Thunder Bay, Sudbury
Verma is also reassuring Sudbury and Thunder Bay that NOSM does not plan on leaving either of its campuses.
“We have a campus [in Thunder Bay], we have employees there, we have institutions with Thunder Bay Regional where we’re planning on building our residences,” she said.
“Same thing in Sudbury, you know working closely with [Health Sciences North] and HSNRI, with the other colleges. We’re very involved with building our relationship with the municipalities across northern Ontario.”
Verma adds that she wants NOSM to still be able to work together with Laurentian and Lakehead.
“Whatever Laurentian ends up being, it will still be an important partner for us, as will Lakehead.”
Benefits to stand-alone institution
Verma says becoming a stand-alone institution is not something she had discussed with the government.
“We’ve been talking to the province about expansion with the other medical schools,” she said.
“I’ve been wanting to expand the medical school since I got here, and it’s in our strategic plan.”
Having the medical school be its own independent institution will have benefits.
“Certainly for northern Ontario, it means that we can build on our capacity to deliver health services and health professions in a more pan-northern way,” Verma said.
“I want people to know that nothing changes, NOSM is here, we’re going to grow, we’re going to continue to leverage our full potential,” she added.
“We are a great school, so nobody should be concerned that there’s going to be a seismic shift in our business.”
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