Youngkin calls for Michael Rao to step down as VCU Health President

Selna Shi, News Editor

Teagan Harrington, Contributing Writer

Bri Stevens, Contributing Writer

Gov. Glenn Youngkin called for VCU Health governance changes last week after VCU Health exited the Clay Street development project in June, stated Christian Martinez, Youngkin’s deputy press secretary, in an email.

Youngkin sent a letter to the General Assembly this past week and called the project failure a “wake-up” call to the flaws in the VCU Health governance, according to Martinez. He recommended replacing the VCU Health president Michael Rao, reducing doctors and eliminating legislators from the board. 

Youngkin also stated he wants someone “with the experience and time commitment” to lead the health system and suggested Rao to stay as an “ex-officio” member.

The Clay Street development was intended to be a “multi-building project” that would’ve cost VCU Health $325 million, according to the Richmond Times Dispatch.

Marlon Levy, interim CEO of VCU Health, stated that the project was going to replace the city’s decaying Public Safety Building. VCU Health paid a one-time payment of $79.2 million to the City of Richmond to exit the project.

“This [$72.9 million] was funded by VCU Health operating funds; it represents less than 2.5% of our annual operating budget,” Levy stated. 

VCU Health was committed to paying the City of Richmond $600 million over a 25-year lease to develop the project, stated associate vice president for public relations at VCU Michael Porter in an email.

Rao oversees the health board, but does not have operational power, according to the Virginia Legislative Information System.

Rao stated to Richmond Times-Dispatch that he supports Youngkin’s recommendations to step down as VCU Health president. VCU and VCU Health are already working on making the recommended changes that will begin this upcoming spring, Rao stated. 

“I shared then my belief that healthcare has changed so much and so rapidly, VCU Health board of directors requires a chair 100 percent devoted to the health system, similar to how the president of the University of Virginia is not chair of its health system board/committee,” Rao stated. 

In a different statement, Rao stated that VCU Health has hired Saul Ewing, an independent law firm to assess the Clay Street project. 

Rao also stated that VCU and VCU Health will commit to being more transparent, as VCU Board of Visitors was unaware the project was failing, according to the Richmond Times Dispatch. 

Porter shared a presentation by Saul Ewing on the observations of Clay Street project failures and improvements for future VCU projects. 

Saul Ewing described the origin of the Clay Street project as “born out of the ashes of Navy Hill.” Navy Hill was turned down by the Richmond City Council in 2020, proposed to be a multi-building project similar to the Clay Street project. 

Saul Ewing also suggested in the presentation open communication between VCU Health and VCU.

Many VCU Health students are unaware of the Clay Street project but think it was too expensive.

Dhruv Patel, a third-year pharmacy student, said it’s “insane” that the project could’ve cost millions.

“That’s insane. I feel like the money could have been used for better things. Especially since this project also failed,” Patel said.

Another VCU Health student Julia Smolen said that the project failure is disappointing because VCU Health is wasting money. 

“Disappointing is the first word that comes to mind. They put a lot of money into that, and it could have been used in a lot of other areas that need to be grown,” Smolen said.

Smolen said the money could’ve been contributed to students who are doing residency.

“I think this is more than just a VCU thing, but I think VCU could contribute [to residents]. But I think that residents are underpaid, and overworked,” Smolen said. 

Smolen thinks that there needs to be governance changes to VCU Health, she said.

“I think that when there are enough problems, change is gonna only bring good things into affirming what went wrong,” Smolen said.