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PHF Beneficiaries
UT El Paso
UT Health Science Center at Houston
UT Health Center at Tyler
UT Southwestern Medical Center at Dallas
UT Medical Branch at Galveston
UT Health Science Center at San Antonio
UT M. D. Anderson Cancer Center
Regional Academic Health Center
Texas A&M University Health Science Center
University of North Texas Health Science Center at Fort Worth
Texas Tech University Health Science Centers
Baylor College of Medicine
Higher Education Nursing, Allied Health, and Other Health-Related Programs
Minority Health Research and Education Programs
Permanent Health Fund ($698.2 million)
Overview
The Permanent Health Fund (PHF) is an internal UT System mutual fund for the pooled investment of state endowment funds for health-related institutions of higher education. The UT Board of Regents established the PHF in August 1999 with proceeds from state tobacco litigation.
The PHF's roots began in 1996 when the Attorney General filed a lawsuit on behalf of the State of Texas against the tobacco industry. The lawsuit sought damages, including, but not limited to, recovery of public health expenditures by the state. The lawsuit also sought that the tobacco industry be enjoined from using marketing or advertising campaigns that encourage minors to purchase and consume tobacco products.
In 1998, the tobacco industry and the State of Texas entered into the Texas Settlement Agreement. In 1999, the state received a first year settlement payment of $1,091 million and projected the receipt of an additional $691 million over the 2000-2001 biennium. Consistent with the long-term educational and public health motives underlying the lawsuit, the 76th Legislature appropriated $1,015 million of these proceeds to establish three permanent funds and thirteen higher education endowments.
- The Permanent Health Fund for Higher Education - $350 million
The distributions from this endowment finance programs that benefit medical research, health education, and treatment programs at 10 health-related institutions of higher education.
- The Permanent Fund for Higher Education Nursing, Allied Health, and Other Health-Related Programs - $45 million
The distributions from this endowment finance grants to public institutions of higher education that offer upper-level academic instruction and training in the fields of nursing, allied health, or other health-related education.
- The Permanent Fund for Minority Health Research and Education - $25 million
The distributions from this endowment finance grants to institutions of higher education, (including Centers for Teacher Education), that conduct research or educational programs that address minority health issues or form partnerships with minority organizations, colleges, or universities to conduct research and educational programs that address minority health issues.
- Permanent Funds for Health-Related Institutions - $595 million
The distributions from these higher education endowments fund research and other programs at thirteen Texas institutions of higher education that benefit public health.
The 76th Legislature also designated the State Comptroller, the Board of Regents of the UT System or the governing boards of the beneficiary institutions of the higher education endowments as the administrators of these funds. As of August 31, 2002, UTIMCO manages the Permanent Heath Fund for Higher Education and eight of the thirteen higher education endowments.
As of March 1, 2001, the PHF purchased units in the newly created General Endowment Fund (GEF). Prior to March 1, 2001, the PHF's investments were managed separately. The initial number of units purchased was based on the PHF's contribution of its investment assets as of February 28, 2001. To understand the details of the PHF's investment results for the year, the GEF section of this report should be consulted.
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