Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 456]

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BOARD OF TRUSTEES

[January 16

delegation of authority to the comptroller to extend the agreement for up to two additional one-year periods. Under the agreement HSI will provide specific administrative services to support management of contracts with HMOs. T h e University under contracts with HMO insurers is paid a capitation amount (a fixed amount per member per month) for contract-specified physician and hospital services. For patients who have selected the University of Illinois under their HMO insurance, HSI will maintain patient enrollment information, verify eligibility for services and respond to inquiries. HSI will be responsible for managing and processing claims related to these patients. HSI will provide regular physician practice pattern, referral, and utilization reports needed to monitor the cost effectiveness of these HMO contracts. HSI will also provide reports to allow for appropriate distribution of revenue from HMO contracts. Payments to HSI under the agreement will be based upon a percentage of revenue generated from University contracts with HMOs (13 percent of revenue generated in the first year of the agreement and 9.2 percent of revenue generated in any renewal years). It is estimated that payments to HSI in the first year of the agreement will be $150,000. Funds for the agreement will be available in the Medical Service Plan from revenue received from University contracts with HMOs. T h e services provided by HSI are essential to appropriately manage the contracts with HMOs and commercial insurers. Additionally, the services will support the hospital's plan for increasing the managed care component of its service program. T h e services offered by HSI are necessary for proper control and reporting. HSI has experience in the management of these contracts as well as the necessary systems and computer software. T h e vice president for business and finance recommends approval. I concur.

On motion of Mrs. Shepherd, this recommendation was approved by the following vote: Aye, Dr. Bacon, Mr. Boyle, Mrs. Calder, Mr. Downey, Mr. Grabowski, Mrs. Gravenhorst, Mr. Lamont, Ms. Reese, Mrs. Shepherd; no, none; absent, Governor Edgar. (The student advisory vote was: Aye, Ms. Caporusso, Mr. Mitchell; no, none.)

Contract, Strategic Planning Services, College of Medicine and University of Illinois Hospital, Chicago

(14) T h e chancellor at Chicago has recommended renewal of a contract with the Tiber Group, a Chicago-based health care consulting firm, to provide technical support for the implementation phase of the strategic planning process for clinical programs in the College of Medicine, the University of Illinois Hospital, and the health sciences colleges. T h e implementation phase of this process will be directed by an Implementation Oversight Committee currently called the Planning Committee. Thirteen working task forces will be constituted to address issues ranging from the development of technical business plans to the definition of facility needs. T h e results of this process will be presented to the Health Services Planning Council for review and further action. An experienced consultant in the health field, Dr. Dieter Haussmann, will continue to serve as a facilitator for this effort. T h e objectives for this planning process will be to: 1. Develop the detailed business, facilities and investment plans necessary to operationalize the strategies developed in the first phase of the strategic planning process; and