Spun-Off HMS Subsidiary Will Drop Harvard Name After 2012

The segment of Harvard Medical International (HMI)—Harvard Medical School’s non-profit consulting subsidiary—that the University plans to transfer to Partners HealthCare will have to drop Harvard from its name at the end of 2012, according to an official familiar with the negotiations between Partners and Harvard.

The two parties preliminarily agreed to the time period in a letter of intent, the official said, adding that the spin-off will retain the Harvard brand-name until 2012. The actual name of the new firm, whose creation is slated to be announced in mid-March, has yet to be finalized.

University and Medical School spokespersons declined to comment on the details of the agreement, saying negotiations were still ongoing.

Partners HealthCare did not return requests for comment Friday afternoon.

The Crimson reported Thursday that the University was preparing to spin off part of HMI, a $21-million-a-year organization founded in 1994.

The news came near the end of a lengthy review process investigating the organization’s activities in over 30 countries and across five continents.

The review centered on the changing focus of HMI, whose activities have expanded from solely medical-education consulting to also include health care delivery consulting—aiding clients in the construction of hospitals and other facilities.

University and Medical School officials involved in the discussions have expressed concern that the organization’s activities no longer fully reflect Harvard’s core mission of education and research.

“More and more of what we have become, particularly in the last few years, has involved working with health care delivery systems,” said Andrew A. Jeon, HMI’s acting president and chief executive officer in an earlier interview. “That is certainly outside the scope of the University and Harvard Medical School. That drove the discussion.”

Vice Provost for International Affairs Jorge I. Dominguez and Jeon both said Wednesday that the University would honor all existing contracts involving HMI, including the flagship Dubai Healthcare City­. The partnership with the government of Dubai employs over 400 health care professionals and is now set to undergo further expansion, according to HMI’s 2007 annual report.

—Staff writer Clifford M. Marks can be reached at cmarks@fas.harvard.edu.