Harvard Med, Hospitals, Reach $36M Deal

Harvard Medical School, suffering financially in part because of the university's shrinking endowment, has negotiated a deal that will bring in $36 million from affiliated teaching hospitals over three years.

Unlike many other medical schools, Harvard doesn't own its teaching hospitals, which has meant that Harvard doesn't get revenue from patient care like most.

Three major Harvard teaching hospitals - Massachusetts General, Brigham and Women's, and Beth Israel Deaconess - had been contributing about $4 million a year since 2008 solely to help pay doctors to teach.

The Boston Globe reports that medical school Dean Dr. Jeffrey Flier approached top officials at the hospitals last summer and asked for additional help.

The money is just a small portion of the medical school's $580 million annual budget.