The Permanent Health Fund (PHF) is a pooled investment fund for the collective investment of state endowment funds for health-related institutions of higher education. The UT System 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. 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
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
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.
- Permanent Fund for Minority Health Research and Education
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
The distributions from these higher education endowments fund research and other programs at thirteen Texas institutions of higher education that benefit public health.
The PHF comprises the Permanent Health Fund for Higher Education and eight of the thirteen Permanent Funds for Health-Related Institutions. Of the original appropriated $1,015 million proceeds, PHF was allocated $820 million.
In order to take advantage of lower unit costs, attractive investment opportunities, and broader diversification benefits available from a larger investment fund, the assets in the PHF are invested in the UT System General Endowment Fund (GEF), a broadly diversified pooled investment fund created by the UT System Board of Regents in March 2001. The other GEF unit holder is the UT System Long Term Fund (LTF).
- UT El Paso
- UT Health Science Center at Houston
- UT Health Science Center at Tyler
- UT Southwestern Medical Center
- UT Medical Branch at Galveston
- UT Health Science Center at San Antonio
- UT MD 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