Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 220]

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208

BOARD OF TRUSTEES

[March 14

I concur, pending further action by the Illinois Board of Higher Education. O n motion of Ms. Reese, this r e c o m m e n d a t i o n was approved. (Governor Edgar asked to be r e c o r d e d as not voting on this item.) Reese/Humana Hospital Illinois, Inc., Agreements, Consent to Assignment and Assumption (9) T h e r e are a number of agreements between Michael Reese Hospital and Medical Center (Reese) and the University, including several affiliation agreements which were authorized by the board during 1989 and which expire on June 30, 2010. As part of the transfer of assets from Reese to Humana Hospital Illinois, Inc. (Humana), Humana desired to assume all of Reese's contractual obligations with the University. This required the consent of the University. Although there were prior discussions with Humana, it was believed that the details of future Humana/University relationships would be negotiated following the closure of the sale of the hospital to Humana. On Monday, February 25, the University received the first of several letters requesting that it execute a Consent to Assignment of all agreements with Reese to Humana. On Wednesday, the University was advised that the sale would close on Thursday, February 28, and that the Consent to Assignment must be executed prior thereto. Discussions between the University and representatives of Reese indicated that a six-month extension of the agreement was possible pending further review and discussion between Humana and the University. On that day, the Executive Committee authorized the execution of a Consent Agreement which would have allowed the contract to continue through September 30, 1991, at which time the University would have the right to initiate termination procedures. On Friday, March 1, it was learned that this arrangement was not acceptable to Humana and that the sale of Reese would not occur without it, and that Reese would suffer severe consequences in a matter of days. Because this would have a serious effect upon University residency programs, the Executive Committee of the board authorized the University to enter into a modified Consent Agreement with Humana in which the University reserves the power to invoke the termination of the affiliation Humana agreements on June 30, 1995, and which gives the power to institute termination on June 30, 1997. T h e Consent Agreement also provides that the University and Humana shall, in good faith, enter into discussions for the purpose of renegotiating the terms of their agreements on an expeditious basis. T h e Board of Trustees is requested to accept the report of action by its Executive Committee and to affirm it. O n motion of Mr. Boyle, this r e p o r t was received a n d affirmed as r e q u e s t e d by t h e following vote: Aye, Dr. Bacon, Mr. Boyle, Mrs. Calder, Mr. Grabowski, Mrs. Gravenhorst, Mr. L a m o n t , Ms. Reese, Mrs. Sheph e r d , Mr. Wolff; no, n o n e ; absent, n o n e . (Governor Edgar asked to be r e c o r d e d as not voting on this item.) By consensus, t h e b o a r d a g r e e d that one roll call vote would be taken a n d considered t h e vote on each agenda item nos. 10 t h r o u g h 17 inclusive. T h e r e c o m m e n d a t i o n s were individually discussed b u t acted u p o n at one time. ( T h e r e c o r d of b o a r d action appears at t h e end of each item.) Authorization to Participate in the Illinois Public Treasurers' Investment Pool (10) T h e Illinois Public Treasurers' Investment Pool (IPTIP) was established to meet the specific needs of custodians of public funds in the State of Illinois. Participation