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Look Sharp: Or , You Ain't Heard the Last About UT Southwestern's List

Thu May 15, 2008 at 08:51:47 AM
Ruth Sharp Altshuler

Now, Ruth Sharp Altshuler for the defense. In this week's subscription-only Chronicle of Philanthropy, Dr. Ken's missus weighs in on behalf of UT Southwestern Medical Center's prez, Dr. Kern Wildenthal, who, as you no doubt recall, has been pro'd and con'd to death in the mag's pages over everything from that list of VIPs to his taste in wine and gifts. She's furious over earlier allegations made by Pablo Eisenberg, a senior fellow at the Georgetown University Public Policy Institute, who wrote last month that local media hadn't done enough digging into the doings at UT Southwestern, to which Altshuler responds, his are nothing but "scurrilous insinuations."

There's more from her after the jump, where you'll also find, from this week's issue, excerpts from yet another essay by Eisenberg, who takes on UT Southwestern's executive VP Alfred G. Gilman, the man who earlier this month referred to earlier revelations from KTVT-Channel 11 and The Dallas Morning News as "poppycock," and Altshuler, whose letter he was apparently shown before publication. Writes Eisenberg, "To prepare the opinion column, I called at least 40 people in Texas as well as a few representatives of hospital associations to get their views about what has happened at the Southwestern Medical Center. The article was based on the views of a variety of people to whom I spoke in Dallas and elsewhere." Next month: caged death match. --Robert Wilonsky

From Ruth Sharp Altshuler:

What Kern Wildenthal has done at UT Southwestern Medical Center has been incredible. To have done all this, and also taken a young medical school and in 20 years as president built it into one of the best in the nation, and even the world, is a stunning accomplishment.

With four active Nobel laureates on the faculty (more than any other medical school in the world); 17 members of the National Academy of Sciences (one of the highest honors attainable by American scientists); 21 members of the Institute of Medicine (a component of the National Academy of Sciences); and more than 3,500 research projects with $350-million in annual funding, UT Southwestern almost approaches the realm of fantasy.

I find it appalling that a journal as respected as yours would print the scurrilous insinuations of Pablo Eisenberg ("A Texas Scandal Raises Questions About Nonprofit Hospitals," April 17). Dr. Wildenthal is one of the nation's great university administrators and a man of great personal integrity. He should not have his reputation ground up by irresponsible reporting.

From Pablo Eisenberg:

Alfred G. Gilman, provost of the University of Texas Southwestern Medical Center ("A Misleading View of a Texas Medical Complex," Letters, May 1), and the letter from Ruth Sharp Altshuler, a prominent Dallas philanthropist and supporter of the center, have accused me of irresponsible reporting and "scurrilous insinuations" in my article on the policies and practices at the center and the investigations of the center by a local Dallas TV station and The Dallas Morning News. They believe that I unfairly depicted both the work of the medical center and its chief executive, Kern Wildenthal ...

The critique by Dr. Gilman and Ms. Altshuler centers on two basic issues: the activities of the Southwestern Medical Center and the use of charitable contributions for fund raising and other purposes.

I want to be very clear about two facts. The first is that I never questioned the medical reputation and outstanding achievements of the center and its physicians. If anybody is responsible for some of the practices that I and others have cited, it has not been the responsibility of practicing doctors but that of the administrators who run the center.

The second is that I did not attack the reputation and administrative abilities of Dr. Wildenthal. On the contrary, I called him a "phenomenal fund raiser" who had built the center into a prosperous medical enterprise. I should add that I did not once use the word "scandal" in the article itself, but the editors used it in the headline they wrote. ...

Both Dr. Gilman and Ms. Altshuler imply that I don't know much about fund raising. I founded and ran a highly respected national nonprofit organization, the Center for Community Change, for 23 years and have been a major fund raiser for scores of coalitions and nonprofit organizations. I trust it was not an accident that in 1997 I received a lifetime achievement award from the Association of Fundraising Professionals ...

A great fund raiser like Dr. Wildenthal doesn't need to hand out such gifts to be successful. Nor, with a salary of more than $1-million, does he need tax-deductible dollars to pay for his memberships in civic and cultural organizations. That should come out of his pocket; the rest of us, making much less, have to pay for our own memberships in such organizations.

Dr. Gilman notes that an audit by the University of Texas gave the Southwestern Medical Center a clean bill of health for its fund-raising expenditures. The audit did not cite any criteria or standards by which to evaluate the appropriateness of the medical center's fund-raising expenses; it merely stated that every item was appropriate. The center should have hired an outside auditor familiar with nonprofit standards and procedures if it wanted to produce a top-quality report.

14 Comments:

Anonymous says:

Great story, also a great response from Mr. Eisenberg and again no back up of proof on her part to support what has been said by the media. How many more people is he going to recuit to support his actions? Enough is enough when is the AG/Governor/UT Systems going to do something about this, his actions are unethical and he knows it.

Rockford Files says:

I think even Mrs. Altshuler would be appalled to know the true behavior of Wildenthal,who never denies any allegations of misuse of donor money himself. Wildenthal needs to tell Mrs. Altshuler about the late Ms. Pauline Wineberger.This wonderful woman and her late husband Aldof provided funds for Wildenthal's first lab and , out of the kindness of her heart, took Wildenthal to Neiman-Marcus every Christams to buy him a new suit.Wildenthal was there when she passed away and was caught in the act of rumaging through her desk and personal belongings while Mrs. Wineberger lay dead ,still in her bed.Wildenthal and the university was sued by the Winberber estate and the case was settled out of court with the settlement sealed by UT Southwestern as a part of the agreement.Mrs. Altshuler surely remembers Ms. Wendy Reves,who donated more than 1400 pieces of art to the Dallas Museum of Art.When Wildenthal visited Ms. Reves at her villa in the south of France ( one formerly owned by Coco Channel and is valued at $35 million) he declared in September 2006 that she was weak but lucid, when in fact she was not lucid. While he was there ,Wildenthal had Christie's from Paris appraise her items in the villa including first editions and art and other collectibles.Mrs. Altshuler may be surprised to find that Wildenthal used donated funds to "conduct business on behalf of the Wendy and Emery Reves Foundation" which hadn't filed a 990 in more than 15 years.The more important part of this story for Mrs. Altshuler to digest is how Wildenthal ended up being the executor of the Reves Estate and,essentially its sole benefactor. Ms. Margaret McDermott was a close friend of Ms. Reves, perhaps she can explain how this all transpired. Wildenthal is not who Mrs. Altshuler thinks he is,because she has money,she is a large donor,and Wildenthal shows her the part of him he wants/allows her to see. To attack Pablo Eisenberg is tantamount to tilting at windmills.The truth lies with Kern Wildenthal and he isn't talking,but his behavior does talk. While press releases from the universy contend that Wildenthal and his wife have donated more than a million dollars to the university, the official records of the university indicate a little more than $300,000 with a letter to a former development officer promising a million dollars.A million has not been donated.Further, on several occassions,Wildenthal reimbursed the university for his wife's airline travel (purchased on state contract)and wrote the word "donation" ,apparently so he could deduct the amount from his income taxes and,likely, credit his "donations" at the university. Mrs. Altshuler, the information to prove this is true exists in the university's records. Ask for them.Have your attorney do an open records request.You are too smart, as was/is the entire Collin's family,and a respected family in this city to allow this man to use his charm.intelligence,and knowledge of fine wine and gourmet food to distract you like a magician,look your money is gone.

Griff says:

I certainly think that Ruth Altshuler and Alfred Gilman are confused between the success of the faculty of UT Southwestern and their achievements and the misuse of donor funds by its president,Kern Wildenthal.Out of the four Nobel prize winning faculty members two shared a prize while on the faculty at Southwestern, while the other two were at other institutions when they were awarded their Nobel prizes. Money brought them all to UT Southwestern.The generousity of of the Dallas citizens,like Ruth Altshuler , provided the financial basis for these great scientists to come to Dallas.The very same generousity provided funds for Wildenthal to use to enhance his own lifestyle and there's the rub. Wildenthal should be held accountable for his err in judgement and should have been a steward of the finances of the institution rather than using the funds to benefit himself,personally. At the expense of donor generosity, Wildenthal purchased tables for other charity events,paid for memberships in his own name at arts societies,sent thoughtful gifts to people in his name,buying gifts in excess of IRS rules like the $11,000 gift from Tiffany's for William Solomon for his $10 million gift and the many other gifts he has given over the years at the expense of donor generosity. We must be clear about the statements from Eisenberg and others by understanding that people who can donate $10 million can certainly afford their own Tiffany purchases and it is unnecessary and violates the IRS Rules. Wildenthal's trips to Duke where his daughter lives, the trips to Palo Alto where his in-laws live,the trips to London for the Oxford reunions,the trips to various parts of Europe to "do business" for this foundation and that foundation ,should not be paid from donor funds. If your closest relative died and you wanted the floral money to all go to UT Southwestern to help with research, I think you would be disappointed to know that all of that money was spent on first class accommodations in Europe, the opera, rented luxury automobiles,caviar, and to enhance the lifestyle of its president.Personally, I am saddened by the fact this man,well respected, betrayed people who trusted him and respected him only to find out he's not who we once thought him to be, a man of integrity.

Steve says:

First,I would like ot address Pablo Eisenberg's last paragraph concerning an audit on the president's fund raising expeditures. The audit was conducted by the university's own internal auditor who reports to the president.That,in of itself , is a conflict of interest and a CPA worthy of his license wouldn't audit for his own boss. What is the auditor suppossed to do when his boss asks him to prepare the preverial "clean bill of heath" for his expeditures. Presuming he wanted to keep his position at the university, the audit was tailor made to the president's desires. Good job!

Now as to the primary focus of Pablo Eisenberg's statements,the expenses wildenthal has incurred in the name of fund raising. It is a valid point of view that Mr. Eisenberg consider the expenses excessive in some areas and some diretly benefit no one but Wildenthal personally.Eisenberg is correctly stating the obvious, that some expenses made by Wildenthal are not fund raising expenses and should have been paid for by Wildenthal,personally.If the IRS were to rule on this difference of opinion,there is little doubt that Wildenthal would be liable for additional taxes for the use of university funds to benefit personally.

If the well respected Mrs. Altshuler and others wish to continue to debate the legitimacy of the "charges" of misuse of donated funds, then it is a simple matter of transparency by having the expenses audited by the IRS.Invite them in for an audit.Or, Mrs. Altshuler could request her own external audit that would not be influenced,advised,or controlled by Wildenthal or anyone on his staff.That being said,this debate will end, because there is no way I believe Wildenthal would allow an external audit and review of his use of donor funds.If there is a search for truth,let it begin with transparency through an outside audit without the influence of the university or anyone in state government.

Elizabeth says:

While I realize that Dr. Wildenthal is trying to impress donors and potential donors with being treated special with thoughtful gifts,elegant dinners, having donors and potential donors on the VIP list so they receive the top tier of medical service , even if the care in of itself is the same, the access to medical care is different and priviledged. Dr. Wildenthal has blurred the line between fund raising and improving his own profile, but with funds donated to a purpose to benefit the medical center. He may argue the point that his memberships in the opera,symphony,and other arts foundations facilitate introductions to potential donors , but he should be including the name of the university as the member,not him personally. It appears that he is using university funds to raise his own visibility in the social circles. I think he tips his hand ,when he has special instructtions to the popcorn company that the name of the university is NOT to be used,just his and his wife's,indicating to a recipient that the thoughtfullness was his expense.The New York Times ran a story, some time back , that Wildenthal uis a wine expert and now we see his enjoyment of expensive wine,again at donor cost.Wildenthal has often spoke of his mother taking his to the opera,where he took a special interest. He will become president of the Dallas Opera Board,backed again by donations he has made,in his name only, from donated funds. I think records would reflect his use of credit card expenses paid by the university,rarely he reimburses an expense,as self indulgent and seasonal gifts, expensive gifts,and personal gifts are used to make donors think he is thoughtful.Wildenthal has notebooks in his office , filled with pictures of donors and potential donors and facts about them and their family and friends,and their estimated net worth.Computers are programed with special dates for donors to receive gifts and hospital admissions tell his staff when to send flowers , from him and not the university.The medical records of donors are reviewed by Wildenthal so he can insure the right physician is matched to the donor.This does not equate to equal medical care and exceeds the standards for medical care available to all patients.

Rick says:

Ruth Altshuler hasn't been paying attention if she thinks these are insinuations.No mam,these are facts. Facts supported by documentation posted on the internet by Robert Riggs the reporter who did several stories on misuse of funds. He posted the documents for all to see and the university,while being provided interview opportunities, refused to explain the charges and the lack of receipts for many items.Ruth Altshucler , well very interegent, I doubt even wrote this letter. It looks like the handy penmanship of Wildenthal,who also wrote under the pen name "Dr. Kenneth Shine" when he was being defended another time. "We have UT System audits and State Auditor's Reports that declare all of these expenses legitimate". Wrong! An open records request to each of those entities revealed there were NO audits.That is a fact Mrs. Altshuler.If you indeed believe that people are "out to get Wildenthal", what would be the purpose? There are liable laws that can be used to expose the truth.I see no such law suits.Wildenthal could have shown documentation and explain the documents, or lack thereof, but he chose not to do so,why? If you want to defend Wildenthal,Mrs. Altshuler, do it with facts and not personal attacks on journalists. Do it with documentation,not your understanding.Do it with questions and not with blind trust.I know that Wildenthal has always been kind to you,but let's face it, you are wealthy.If you weren't wealthy,would you even know Wildenthal? Would you receive the same treatment at Aston Center? Could you stand up and defend this man based on the success of the faculty? The true measure of a great man is integrity.The people who are responsible for making UT Southwestern a great institution are its donors,like you Mrs. Alshuler,the faculty,the employees,even down to the custodian who cares about what they do more that you will ever know. Wildenthal did not and could not ,by himself,build UT Southwestern into a great medical center.I'm sorry ,but your loyalties are misplaced.

Southwestern Employee says:

As an employee of UT Southwestern, I can tell you that this university is run by tyranny and fear mongering.Dr. Wildenthal and the rest of the "group" meet and decide in an arbitrary fashion the fate of many employed here without even knowing most of them. At a certain level,your evvaluation goes to this group of 12 who decide your salary increase or if you are eligible for a promotion and/or a transfer.They do not use facts ,they impose their will. These members of the "group" have no hesitation in denying you a promotion based on something or someone the employee will never be informed about.While Wildenthal and the rest of top administrators are rolling out the red carpet for donors, employees must creep in the back door.Employees are not valued nor ,as a general rule , rewarded.Jobs are hard to come by,so we must bow are necks like "slaves" under the yoke of an aristocratic dictatorship that demands perfection, while they can do as they please.Wildenthal has a credit card for travel,while employees must use their own funds and are reimbursed 30 days after turning in their receipts.Employees have to pay for their own meals,while the administration has free meals every day.They may work 10 hours ,while employees may work 12 hours.Administrators insurance is top tier,ehile employees get what they get and pay a high price for insurance.Parking is in short supply but Wildenthal and the top administrators receive free parking in a reserved location of the ir choice and employees must park where they can and pay for the priviledge.If you complain about the administration to the employee reps or the EEO department, it is not in confidence but the information goes to the administration who may terminate you as a troublemaker.They can promote and terminate at will.You can file a complaint with the state,but you can't stay unemployed in the process.Yoou can't eat with the adminstrators in their private club, employees are segreated from that possibility.You get your 3% raise and then walk past the Mercedes,Lexus,BMW's,and other high end luxury cars on your mile long hike to your desk.If you are unfortunate enough to get on an elevator with Wildenthal, he will not speak to you, though he may look disapprovingly because you shouldn't be on the same elevator as the "king".The inequities and fear would make many quit, and they do. Many stay for the security of a job.Many employees love the university,in spite of the management style and do their best.In the end,when the leave no one cares.While donors and others( that don't really know) rave about the way Wildenthal built up UT Southwestern, they have to remember that great generals had brave soldiers, quality products have dedicated employees, and UT Southwestern has donors that have enabled the university to use those financial resources to attract brilliant researchers and physicians . Without these very generous donors, Wildenthal would just be another college president and UT Southwestern, just another medical school.Without employees to facilitate the support services required,nothing would get done.

Jack says:

"Top tiered medical school in the world" ? Where does this information come from?Can you please provide a sourece,other than Wildenthal? Truth is as far as research, it is OK, ranking second in the state of Texas, and 21st out of 128 med schools, and behind state schools such as UC San Francisco which has 2.5 times as much research dollars, University of Washington, UC Los Angeles, University of Michigan, UC San Diego, University of North Carolina, University of Alabama. It is basically tied with U of Colorado, U of Oregon, and U of Maryland.
This is my source of information:

http://report.nih.gov/award/rank/medttl05.htm

This report does not correspond with the "facts" Ruth Altshuler lays out.I'm certain that information came from Wildenthal.

The "stunning" accomplishments are not those of Wildnthal,but the faculty and the money provided by donors, not to mention the efforts of the employees. Wildenthal wants all of the credit but he inherited a wonderful situation from Dr. Charlie Sprague,his predessor. Dr. Sprague was an inspired leader and gracious man, not selfish nor self centered. Wildenthal could have learned much from Dr. Sprague.

Ruthg Altshuler should not allow her name to be used to defend Wildenthal,unless he is unable or unwilling to defend himself. There is a day coming, that having signed this letter , you will be angry and embarrassed. You are being conned by the "Medical Man", which is like the "Music Man" except for money for medicine and not musical instruments."We got trouble right here in River City",Mrs. Altshuler.

John says:

Kern, are you without courage?Why do you never stand out front and speak for yourself? You have pushed MCConnell out there,and Gilman,and now Ruth Altshuler.It is like you don't want to be quoted,because you know there are lies in these letters of support? You have provided the city with an insight to your personality and you integrity. You never deny ,yourself, the likihood of misuse of donor funds,most likely because you know it's true.You have conned so many people ,I think you are starting to believe your own lies.You have said that your expenses are legitimate because Roan approves your expenses.He has no backbone , besides he works for you.What are his choices? Being honerable and unemployed is likely not his first choice.The same can be said for your audit director.Why would he do an sudit that showed you were dishonest? He's not looking for a job. You will never be a wealthy man like you had planned.People know what you are up to with your friend at Aiken Gump.You are so arrogant you fail to see that the wolf is at your heels and getting closer.Private investigators may know more than you think.Your ego has betrayed you to the point you don't think your actions have been captured in documents,reports,pictures,and facts. The mere fact that you were in Paris on the day Wendy Reves died and you never mentioned that is telling. You need to do the right thing in regards to all of the issues you are involved in so you can retire in dignity.To think you are above the law and can escape truth is a mistake.

Tom says:

For a "world class medical center", the survey from the government doesn't seem to agree with Wildenthal's self assesment of his medical care at the hospitals. They are average with the the major hospitals with St. Paul typically rating below its sister hospital managed by the same administrators,Zale-Lipshy, where the donors are generally hopitalized:
http://www.hospitalcompare.hhs.gov/Hospital/Search/SelectHospitals.asp

The university's self survey reports appear far better than these, but this is my source.

Anonymous says:

Now he is in charge of another organization how scary now he has more money to spend to do the same thing he was doing at UT:
http://www.dallasnews.com/sharedcontent/dws/bus/columnists/rmiller/stories/DN-miller_18bus.ART.State.Edition1.4645a7d.html

John B. McGill says:

I would hate to think that Wildenthal was "managing" my funds. He can collect it, but his spending habits are notorious. He uses other people's money to make himself look like he is "as good" as they are,when he is really suffering from an inferiority complex. He wants,and pretends to be as wealthy and as sophiticated as the wealthy in Dallas.He can memorize with the best of them and he is smart, but he is only fooling himself ( and perhaps some foolish people) because many of us have seen the real Wildenthal and it isn't a pretty picture.He is hiding secrets about himself,his greed,his lack of self esteem, and a particuly close relationship with eveidence he has to worry about every day if someone else knows, I know your secret.

Anonymous says:

John B. McGill please share the secret I bet the IRS would like to hear it as well, and as you can tell on this blog a lot of people know how this man really is.

John B. McGill says:

I have already filed form 3949 with the IRS.

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