Oversight by SHERM

1. Safety, Health, Environment & Risk ManagementRisk Finance Summary for Work Force & Property Exposures: FY08 Experience and FY09 Projections

3. UTHSC-H Employee Injury Reports and Workers’ Compensation Insurance Premium Trends, FY01 to 09Note: insurance premium influenced predominantly by market conditions, employee census, employee payroll, and injury frequency and severity Oversight by SHERM - $123,753 $1,893,572 in total premium savings since FY03 - $293,331 188 fewer reported injury events compared to FY 03 - $348,718 - $568,998 - $558,772 105 fewer injuries requiring medical compared to FY 03

4. $227,000 in RAP reduction in FY09 as compared to peak of $436,100 in FY07

5. UTHSC-H Residents’ Injury Reports and Workers’ Compensation Insurance Premium Trends, FY03 to 10Note: insurance premium influenced predominantly by market conditions, employee census, employee payroll, and injury frequency and severity Oversight by SHERM Increase due predominantly to needlesticks. Targeted investigation and interventions underway $80,000 in total premium savings since peak in FY06 Annual policy premium reduction from FY09 to FY10 of $6,000

6. Total of $124,581 in dividend payments since SHERM oversight

7. Workers’ Compensation Insurance Premium Adjustment for UTS Health Components Fiscal Years 2003 to 2009(discount premium rating as compared to a baseline of 1, three year rolling average adjusts rates for subsequent year) Oversight by SHERM UT Southwestern Dallas (0.17) UT Medical Branch Galveston (0.16) UT HSC San Antonio (0.12) UT HSC Tyler (0.09) UT HSC Houston (0.09) UT MD Anderson Cancer Center (0.05)

9. Possible Range of Annual WCI Premium (Assuming no change in population, payroll, or other influencing factors)

10. *MHH Increase in BI coverage from FY08-FY09, $49MM to $75MM FY09 Premium reduced by $290K, due to scheduled risk control measures (robust EMP, flood doors, training, etc.) and risk based loss estimates.

11. - Losses Incurred but covered by UTS Comprehensive Property Protection Program The CPPP did not experience any losses from UTHSC-H - Losses incurred but covered by third party Metro Bus damage to the Ross Sterling Breezeway at MSB, $25,000 - Retained Losses Hurricane Dolly estimated loss to UTHSC-H Brownsville, RAHC $125,000 Eight of twelve retained losses were water related losses at an average cost of $1900 per loss *Not inclusive of any recorded capital assets inventory irregularities. For additional information contact UTHSC-H Capital Assets Management **Estimate based on replacement cost of damaged property

12. *Not inclusive of any recorded capital assets inventory irregularities. For additional information contact UTHSC-H Capital Assets Management **Estimate based on replacement cost of damaged property

13. Help Avoid the 3 Main Causes of Property Loss at UTHSC-H The three main causes of property loss at UTHSC-H in FY06 were water leaks, theft, and electrical power interruption. These three perils resulted in over $331,000 in direct loss and untold disruption to teaching, research, and service activities. The deductible for the UTS Comprehensive Property Protection Program is $250,000 per occurrence, in FY06 none of the losses exceeded the per occurrence deductible, however the sum of retained losses exceeded the deductible by $140,000. In special cases additional insurance can be purchased*. Summarized below are simple steps that can be taken to avoid such losses. *Information about the purchase of additional insurance can be obtained by contacting Risk Management; 713-500-8100.

14. Enhanced Risk Assessment & Control Services Services Provided • Institutional exposures objectively ranked by value exposed to loss; revenue, expenses, and total assets • Targeted analysis on specific risk exposures and the development of risk control techniques to mitigate loss, provide assistance with installation, and implementation • Assess and analyze existing and potential risk financing options • Assist in development of customized Business Continuity Plan for unit • Inventory and document assets to facilitate recovery in event of loss Units Served to Date • Gulf Coast Hemophilia, Neurobiology and Anatomy, Microbiology and Molecular Genetics, and The Biotechnology Center

15. Other Policies SHERM SHERM *Not Inclusive of current SHERM administrative processing fee of $0.46

16. Other Policies *For Liability only at 1246 FM Hwy 102, Eagle Lake, TX -$5,735 - $2,558 for property deletion 8/31/2004 **For Liability only at 1133 John Freeman Boulevard - The property was added 06/01/2006 premium pro-rata

17. Cost of Risk Transfer *NFIP places policies on individual locations, such as UT Apts *Paid out of the Named Windstorm & 100-Yr Flood

18. Discussion Items • Despite best management efforts, market conditions and UT System loss experience have increased wind and flood premiums by 56% • Due to these changes, RMI suggests consideration of removal of all NFIP and TWIA coverage that is not required by the CPPP and resides outside the 500yr floodplain. Projected savings of $75,000 • Current status of retained loss pool? • Despite continual reductions in WCI losses, rebate amounts continue to diminish. The Employee Health program will likely require an additional $70,000/yr to meet UTHSC-H’s employee health obligations to make up for the shortfall.

19. Appendix A

20. *MHH Increase in BI coverage from FY08-FY09, $49MM to $75MM FY09 Premium reduced by $290K, due to scheduled risk control measures (robust EMP, flood doors, training, etc.) and risk based loss estimates.

21. - Losses Incurred but covered by UTS Comprehensive Property Protection Program The CPPP did not experience any losses from UTHSC-H - Losses incurred but covered by third party Metro Bus damage to the Ross Sterling Breezeway at MSB, $25,000 - Retained Losses Hurricane Dolly estimated loss to UTHSC-H Brownsville, RAHC $125,000 Eight of twelve retained losses were water related losses at an average cost of $1900 per loss *Not inclusive of any recorded capital assets inventory irregularities. For additional information contact UTHSC-H Capital Assets Management **Estimate based on replacement cost of damaged property

22. *Not inclusive of any recorded capital assets inventory irregularities. For additional information contact UTHSC-H Capital Assets Management **Estimate based on replacement cost of damaged property