PORTLAND - Oregon Health & Science University plans to cut at least 200 jobs and raise tuition by at least 10 percent to free the money needed for higher insurance costs following an Oregon Supreme Court ruling.

KGW photo/graphic

The December ruling cleared the way for the family of a brain-damaged child to pursue malpractice damages from the university. It effectively eliminated a liability cap of $200,000 designed to protect state agencies from major damage awards.

The cutbacks, expected to be announced Friday, were first reported by The Oregonian newspaper. Besides trimming jobs and hiking tuition, OHSU expects to restructure or close clinical, research and education programs, and scale back construction on Portland's South Waterfront.

OHSU said the court ruling will add $30 million a year in insurance and administrative expenses. Though that's only 2 percent of OHSU's annual operating budget of about $1.5 billion, it amounts to more than 60 percent of its annual support from the state's general fund.

OHSU's cutbacks were revelead just weeks before the Legislature returns for a February session. OHSU hopes lawmakers establish a higher cap on damages that will pass court muster. But even if a new cap is established, it will not be enough to stop the restructuring, Robertson said.

"To be crystal clear, even if there is a legislative remedy tomorrow, there is no financial relief for OHSU until that remedy is tested in the courts," Robertson said.

The court case involved Jordaan Clarke, who suffered permanent brain damage when a breathing tube became dislodged in the recovery room following open heart surgery. The university admitted negligence that left the boy requiring round-the-clock care for life at an estimated cost of $12 million.

OHSU is Portland's largest private employer with about 12,000 staff.