A spokesperson for Vice President and General Counsel Daniel Steiner '54 said the University had not heard about Walsh's plan and therefore could not comment on it. Officials at the Medical School could not be reached for comment.

The current state budget crisis has created serious fiscal problems for many state hospitals, cutting more than $500 million in state funds. In addition, more than $100 million has been cut in federal Medicare programs.

Several other Harvard-affiliated hospitals have been feeling the crunch, according to city Health and Hospitals Commissioner Melvin H. Chalfen. Massachusetts General, the University's largest teaching hospital, recently announced layoffs and built a deficit into its budget for next year, he said.

As a result, Chalfen said, Harvard is unlikely to aid an individual hospital in need. "I don't think there's a money pool any place," he said.

But he added that he approved of Walsh's proposal.

"It's a great idea," said Chaflin. "We would welcome support from all quarters."