The crisis facing Harvard's hospitals couldmean more than the loss of some treatmentfacilities. They are critical piece of theUniversity's medical education program, andindeed, of the nation's health care system.

"These are the hospitals in which new methodsof treatment are tested out," says HMS AssociateVice President for Government. Community andPublic Affairs Jane H. Corlette. "There's no waythat's going to go on if they have to cut costs."

Research and innovation are expensive, and muchof it takes place in academic medical centers.Moreover, these hospitals provide much of thenation's high-tech care, Martin says.

"Our patients are sicker [than at otherhospitals], we are developing new treatments, andall of that requires subsidization,” he says.

What is more, the teaching hospitals'traditional mission of providing charity careseems to also be in jeopardy.

"It's unclear to me how long they'll be able totake care of the poor," Corlette says.

But by for the biggest casualty of funding cutsfor academic medical centers is the education theyoffer medical students.

"We depend upon hospitals to subsidize theteaching of our medical students and to create anenvironment of research," Martin say.

Training in the academic hospitals includesthe residency that all medical students Pursueafter their actual education in medical school.Without more funding, teaching hospitals likeHarvard's may be forced to reduce or eveneliminate resident program.

What is To Be Done?

The best strategy for Harvard's teachinghospitals seems to be cutting costs, but they saythey are doing all they can and still can't breakeven.

According to Martin, HMS cannot afford to makeup the costs out of its own pockets, though theUniversity and its hospitals will make increasedappeals to donors.

The solution, if one is be found, lies inWashington, according to Harvard officials.

The University has kicked its lobbying officein the nation's capital into overdrive.

"I'll have to go to Washington soon,"Rudenstine says.