Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 424]

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412

BOARD OF TRUSTEES

[October 12

Bylaws of UIHMO: Provide for the Board of Trustees of the University of Illinois to be the sole member of UIHMO with certain reserve powers. These include the power to amend the Articles of Incorporation and Bylaws; to elect or remove the Board of Directors; to approve the nomination of the chair, vice chair, and president; to approve any merger, the corporation's incurring of long-term debt, the appointment of independent certified public accountants, and any voluntary dissolution of the corporation. As the sole member of UIHMO, the Board of Trustees of the University of Illinois appoints R. K. Dieter Haussmann as chairperson of the board, Craig S. Bazzani as vice chair, and Anthony A. Ferrara as the interim president/CEO. Management Agreement: Provides for UIHMO to use employees of and other services (including participation in any University insurance program) offered by the University in order to perform its operations. UIHMO will pay the University for the actual costs associated with these employees and services. The Agreement also requires UIHMO to enter into a lease with the University for any office space it may require. Assignment and Assumption Agreements: Set forth the assets and liabilities that will be transferred to UIHMO from the Plan Trust. It further transfers contracts for certain provider services entered into by the Plan Trust to UIHMO. Escrow Agreement: Sets forth the terms under which the funds being held by the University in satisfaction of the regulatory reserve requirements for the Plan Trust will be transferred to UIHMO. The First National Bank of Chicago will be the escrow agent. In order to meet regulatory reserve requirements an additional capital contribution of approximately $1.0 million representing Department of Insurance approved subordinated debt from the University to UIHMO will be funded from the UIC Hospital. The financial statements and financial projections for UIHMO represent the applicable budget for UIHMO. The comptroller and secretary of the Board of Trustees are further authorized and directed to execute such documents and to take such steps as are necessary to complete the Plan of Reorganization and to establish UIHMO, Inc.

On motion of Ms. Reese, this recommendation was approved by the following vote: Dr. Bacon, Mrs. Calder, Mr. Engelbrecht, Dr. Gindorf, Mrs. Gravenhorst, Mr. Lamont, Ms. Lopez, Ms. Reese; no, none; absent, Governor Edgar, Mrs. O'Malley. (The student advisory vote was: Aye, Mr. Malone, Mr. Mathew, Mr. Rose; no, none.)

Consulting Services for Procurement Reengineering Project

(7) The vice president for business and finance, after consultation with the appropriate campus and University officers, recommends approval of a consulting services contract with Coopers and Lybrand Consulting, Boston, to assist in reengineering the procurement process across the three campuses. As noted in earlier discussion with the board, one of our primary initiatives is to streamline administrative processes to become more effective and efficient. The procurement process has been identified as a key target of opportunity for reengineering. The current process requires a considerable amount of time and effort to process a request for a purchase and to make payment because it is very paper oriented, labor intensive, and makes limited use of current technology. The benefits the University expects to realize by undertaking this procurement reengineering project include: Improved service to faculty and staff through a streamlined, more simplified process;