Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 346]

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334

BOARD OF TRUSTEES

[July 11

Acquisition of Land, Community Health Center, Mt. Morris

(27) T h e Mt. Morris Community Health Center of the College of Medicine at Rockford is one of three off-campus ambulatory-care facilities which serves a major teaching role for the college. These three facilities also meet significant health care needs for the communities in which they are located (Belvidere, Mt. Morris, and Rockton). Recently, the owners of an approximately .46-acre tract of land in Mt. Morris have agreed to sell the property to the University at a price of $8,000, a price supported by the University's appraisal. T h e land abuts the present facility on its north boundary and will be used for site revisions to the parking lot and property access for future facilities expansion. Accordingly, the president of the University, with the concurrence of the appropriate administrative officers, recommends that the property described above be acquired at a price of $8,000. Funds are available in the restricted funds operating budget of the College of Medicine. O n m o t i o n o f Mr. B o y l e , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d b y t h e f o l l o w i n g v o t e : A y e , Dr. B a c o n , Mr. B o y l e , M r s . C a l d e r , Mr. G r a b o w s k i , M r s . G r a v e n h o r s t , Mr. L a m o n t , Ms. R e e s e , M r s . S h e p h e r d ; n o , n o n e ; a b s e n t , G o v e r n o r E d g a r , Mr. Wolff. ( T h e s t u d e n t a d v i s o r y v o t e was: A y e , M s . C a p o r u s s o , Mr. M i t c h e l l ; no, none.)

Restructuring of Contract with MedCare HMO, Chicago

(28) T h e chancellor at Chicago has recommended that the University's representatives be authorized to approve the restructuring plan of the MedCare HMO, subject to necessary approvals, and to purchase the University's allocated share of the restructured HMO stock. On July 9, 1987, the Board of Trustees authorized affiliation with MedCare H M O by purchasing an equity interest therein. MedCare is a not-for-profit HMO serving a public aid and commercial base of enrollees. T h e University of Illinois Hospital then became MedCare's primary tertiary care center with hospital services provided at a favorable per diem rate. Since July 1987, UIH has provided 5,000 days of hospital care to MedCare enrollees with billings of $4 million. MedCare HMO is now considering a number of options for financial enhancement, including investment from outside sources. This will require the HMO to change from a not-for-profit entity to a for-profit stock corporation. Under the proposed plan, as part of the fiscal restructuring of the HMO, the membership fee will be returned to the University with a portion of the funds then used to purchase stock in the restructured HMO. T h e University, as a sponsor member of the board of MedCare HMO, must authorize proceeding with the refinancing and restructuring as well as continue an ownership and member hospital role with MedCare by owning shares of stock and participating as a member organization in the new organization. T h e vice president for business and finance recommends approval and further asks for authorization to approve changes in the reorganization plan if not materially inconsistent with the action of the Board of Trustees. I concur. O n m o t i o n o f Mr. B o y l e , t h i s r e c o m m e n d a t i o n was a p p r o v e d a n d a u t h o r i t y was g i v e n as r e q u e s t e d b y t h e f o l l o w i n g v o t e : A y e , Dr. B a c o n , M r . B o y l e , M r s . C a l d e r , Mr. G r a b o w s k i , M r s . G r a v e n h o r s t , Mr. L a m o n t , M s . R e e s e , M r s . S h e p h e r d ; n o , n o n e ; a b s e n t , G o v e r n o r E d g a r , Mr. WolfF.