2008 Woodie Awards
Wellmark rescinds $15 million offer
Stephen Schmidt - The Daily Iowan
Issue date: 7/10/07 Section: Metro
Wellmark Blue Cross and Blue Shield has officially withdrawn its controversial $15 million gift offer to the UI College of Public Health that would have included naming rights to the school.
In a letter sent July 6, Wellmark CEO John Forsyth informed James Merchant, the dean of the public-health school, of the decision.
"Unless and until there is unwavering support from both the college and university administrative leadership for a major gift as originally solicited by the College's Capital Campaign Committee leadership, our gift offer will remain withdrawn," Forsyth said in the letter.
Forsyth said in the letter that the Wellmark Foundation had funded numerous grant requests from the UI in the past and that the university would remain on the foundation's grants committee.
Forsyth's letter was a response to a letter from Merchant that said naming the College of Public Health after Wellmark Blue Cross and Blue Shield would present a conflict of interest for the school.
Wellmark spokeswoman Angela Feig said the company was surprised by the negative reaction to the name change, considering the relationship the company has with the UI and because she said the UI Campaign Committee originally offered naming rights in exchange for the gift when panel members approached the company in early June.
"It was our opinion that the gift and the naming would cement the mutual missions of the two organizations, and it would tie two state institutions together," Feig said. "[We felt] it would make a strong public statement both in and out of our borders that Iowa is serious about public-private collaborations in improving health."
The naming agreement would have changed the name of the college to the Wellmark Blue Cross and Blue Shield College of Public Health in exchange for $15 million. The vast majority of the college's faculty voted against the change on July 5.
UI officials said they were open to other possibilities, such as naming the college after individuals or the Wellmark Foundation - a nonprofit organization - rather than the insurance company.
Even if it had been approved by the faculty, the state Board of Regents and UI president would also have had to ratify the name. Regent Robert Downer said he was unfamiliar with individual colleges being named after businesses.
Downer added that schools such as the College of Medicine - named after individuals with long-term relationships to the university - are different from the Wellmark offer. Also, their donations were larger: Roy and Lucille Carver provided nearly $63 million before the school was named after them, Downer said.
"The [$15 million] struck me, based on that benchmark alone, as being a bit on the low side," he said.
E-mail DI reporter Stephen Schmidt at:
stephen-schmidt@uiowa.edu
In a letter sent July 6, Wellmark CEO John Forsyth informed James Merchant, the dean of the public-health school, of the decision.
"Unless and until there is unwavering support from both the college and university administrative leadership for a major gift as originally solicited by the College's Capital Campaign Committee leadership, our gift offer will remain withdrawn," Forsyth said in the letter.
Forsyth said in the letter that the Wellmark Foundation had funded numerous grant requests from the UI in the past and that the university would remain on the foundation's grants committee.
Forsyth's letter was a response to a letter from Merchant that said naming the College of Public Health after Wellmark Blue Cross and Blue Shield would present a conflict of interest for the school.
Wellmark spokeswoman Angela Feig said the company was surprised by the negative reaction to the name change, considering the relationship the company has with the UI and because she said the UI Campaign Committee originally offered naming rights in exchange for the gift when panel members approached the company in early June.
"It was our opinion that the gift and the naming would cement the mutual missions of the two organizations, and it would tie two state institutions together," Feig said. "[We felt] it would make a strong public statement both in and out of our borders that Iowa is serious about public-private collaborations in improving health."
The naming agreement would have changed the name of the college to the Wellmark Blue Cross and Blue Shield College of Public Health in exchange for $15 million. The vast majority of the college's faculty voted against the change on July 5.
UI officials said they were open to other possibilities, such as naming the college after individuals or the Wellmark Foundation - a nonprofit organization - rather than the insurance company.
Even if it had been approved by the faculty, the state Board of Regents and UI president would also have had to ratify the name. Regent Robert Downer said he was unfamiliar with individual colleges being named after businesses.
Downer added that schools such as the College of Medicine - named after individuals with long-term relationships to the university - are different from the Wellmark offer. Also, their donations were larger: Roy and Lucille Carver provided nearly $63 million before the school was named after them, Downer said.
"The [$15 million] struck me, based on that benchmark alone, as being a bit on the low side," he said.
E-mail DI reporter Stephen Schmidt at:
stephen-schmidt@uiowa.edu
Viewing Comments 1 - 3 of 7
thedude
Tom Seemuth
posted 7/10/07 @ 6:11 AM EST
Downer added that schools such as the College of Medicine - named after individuals with long-term relationships to the university - are different from the Wellmark offer. (Continued…)
JW Haga
posted 7/10/07 @ 8:02 AM EST
I believe the Carver's initial gift only attached the Carver name to the Pavilion and not the School.
Using Welmark criteria we'd now have the Carver Pump/Bandag School of Medicine. (Continued…)
JJ
posted 7/10/07 @ 11:04 AM EST
The administration at the UI is stupid. The University needs the money. I suppose this "national institution" will just go back to the poor taxpayers of the great State of Iowa for even more $$$. (Continued…)
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