Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 535]

EXTRACTED TEXT FROM PAGE:

1992]

UNIVERSITY OF ILLINOIS

523

On motion of Ms. Reese, these recommendations were approved by the following vote: Aye, Dr. Bacon, Mr. Boyle, Mrs. Calder, Mr. Downey, Mrs. Gravenhorst, Mr. Lamont, Ms. Reese, Mrs. Shepherd; no, none; absent, Mr. Grabowski. (Governor Edgar asked to be recorded as not voting on this item.) (The student advisory vote was: Aye, Ms. Caporusso, Mr. Mitchell; no, none.)

Contract, Operations Improvement Program, University of Illinois Hospital and Clinics, Chicago

(20) The chancellor at Chicago has recommended retaining APM, Inc., a health care consulting firm with offices in Chicago, to provide technical support for the implementation of an Operations Improvement Program at the University of Illinois Hospital and Clinics (UIH). Operations improvement is an integrated process for lowering costs, increasing service efficiency, and achieving higher quality. The need for the program is critical to the successful implementation of the strategic plan for the clinical programs of the hospital and the College of Medicine. The objectives of the program will be to: (1) enhance the long-term financial viability of UIH through the reduction of operating expenses while maintaining a high quality level of patient care; (2) establish UIH as a service and cost competitive health care provider to attract additional managed care business; and (3) free up funding to finance strategic reinvestment in UIH plant/equipment and to support the growth of key clinical programs. The operations improvement process will be directed by a steering committee comprised of the vice chancellor for academic affairs (interim), Chicago, the associate vice president for planning and budgeting, selected department chairs/heads from the College of Medicine, other medical staff leaders, deans of other health sciences colleges, and senior hospital managers. The director of UIH (interim) will chair the committee. Results will be presented on an ongoing basis to the Strategic Plan Implementation Oversight Committee and the Medical Staff Executive Committee. Monthly reports will be submitted to the University. Five firms were identified as potential consultants on the basis of their reputations and experience. Each responded to an RFP and made a formal presentation to hospital management, medical staff, and faculty of the College of Medicine. Additional interviews were held with three of the firms. Two finalists were asked to submit supplementary materials and to return for additional interviews and presentations. The criteria used for selection of the consultant included: (1) experience in teaching hospitals; (2) experience with negotiated labor groups; (3) availability of databases for conducting comparative analyses of staffing levels, productivity, and clinical resource utilization; (4) communications plans; (5) project organization; (6) implementation process and deliverables; (7) strategy for implementing a clinical utilization program; (8) references; and (9) recommendations of senior hospital management staff, deans, and other key faculty. APM, Inc., has been determined to be the best qualified consultant for this assignment on the basis of the selection criteria. The consultant will be responsible for providing ongoing guidance to the steering committee, implementing a communications plan, benchmarking productivity and expense levels, identifying opportunities for cost reductions, facilitating and training of task forces, conducting retreats, and assisting with the formulation of implementation plans. The proposed work will begin on May 1, 1992, and conclude no later than December 31, 1992, at a total cost of $900,000 (fee plus estimated expenses). Funds are available in the Hospital Income Fund.