FAYETTEVILLE, Ark. (AP) — The University of Arkansas for Medical Sciences chancellor says the state's only medical school operated at a nearly $500,000 loss during the first two months of the fiscal year that began July 1.

UAMS officials say a large part of the reason for the loss is an increase in the number of uninsured patients at the hospital in Little Rock.

Dr. Dan Rahn told University of Arkansas trustees Friday that UAMS needs to both increase revenue and reduce expenses.

UAMS Chief Financial Officer Melony Goodhand told the Arkansas Democrat-Gazette that there has been a 25 percent increase in the number of uninsured patients in the past four months. She said the hospital receives no Medicare or Medicaid reimbursement for those patients.

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Information from: Arkansas Democrat-Gazette, http://www.arkansasonline.com