Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 589]

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1992]

UNIVERSITY OF ILLINOIS

577

(The student advisory vote was: Aye, Ms. Caporusso, Mr. Mitchell; no, none.)

Extension of Agreements for Fiscal Year 1993, University of Illinois Foundation and Alumni Association

(22) On November 18, 1982, the Board of Trustees adopted revised guidelines governing certain fiscal procedures, including those between the University and University-related organizations. The University of Illinois Foundation and Alumni Association asked to be designated University-related organizations as provided in the guidelines and have operated under service agreements with the Board of Trustees for that purpose. Such agreements have been renewed on an annual basis. Because legislative action upon University appropriations has not been completed, the president of the University requests authorization to extend the present agreements beginning July 1, 1992, and continuing until further action of the board. Funds to support these agreements are included in the appropriation bill of the General Assembly to meet the ordinary and contingent expenses of the University for FY 1993. These funds will be included in the University's budget request for FY 1993 to be presented to the Board of Trustees. The agreements are subject to the availability of such funds.

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

Contracts with Collection Agencies, University of Illinois Hospital, Chicago

(23) The chancellor at Chicago recommends the approval of contracts with four collection agencies to collect unpaid patient accounts that the hospital has been unable to settle through its regular collection efforts. Traditionally, the hospital maintains the services of three different agencies and evaluates performance at regular intervals by calculating recovery rates. A recent review indicates that American Creditors Bureau (ACB) ranked first among the agencies currently being used. Van Ru Credit Corporation ranked second, and HHL Financial Services ranked third. Based on performance and the preferential rate schedules offered, ACB and Van Ru provide excellent service and acceptable results at a competitive rate and will be retained for an additional year. Following standard procedures, HHL Financial Services will be retained only to complete work on accounts that are currently assigned to them. Payco American Creditors, Inc., has been selected as a replacement for HHL Financial Services. This selection was determined by a committee of hospital administrators after consideration of the firm's success in other area hospitals and the competitive nature of their rate. In Fiscal Year 1993, it is anticipated that patient accounts receivable of approximately $6 million will be assigned to ACB with estimated collections of $1 million for a fee of approximately $230,000. Approximately $5 million will be assigned to Van Ru with estimated collections of $850,000 for a fee of approximately $200,000. Approximately $4 million will be assigned to Payco American Creditors, Inc., with estimated collections of $680,000 for a fee of approximately $130,000. HHL Financial Services should collect approximately $400,000 on existing accounts for a fee of approximately $95,000. These contracts will expire June 30, 1994. Funds collected under these contracts will be deposited in the Hospital Income Fund and fees paid from that account.