Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 559]

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1992]

UNIVERSITY OF ILLINOIS

547

Contract, Telecomputer System, University of Illinois Hospital, Chicago

(27) The chancellor at Chicago has recommended renewal of a contract with Telecomputer Systems, Inc. (TCS), for a computer-telecollections system for the Hospital Patient Accounts Department. This system — currently utilized by several Chicago area hospitals including Lutheran General, Humana-Michael Reese, and the Evangelical Health Systems — is designed to improve collection productivity by client contact through automated telephone dialing of delinquent small balance accounts1 and provide collection performance reports for the hospital. TCS provides the site for the hardware and software, as well as the staff for the system. The hardware is owned by the hospital. This system has improved collections and decreased operating expenses by greatly increasing the number of telephone contacts per day by collectors, and has improved cash flow by quickly identifying and referring bad debt accounts to collection agencies. The use of the system also provides additional documentation that the hospital has made a good-faith effort to collect unpaid bills. Such documentation is essential for the hospital to receive credit under the provisions of the Illinois State Collections Act and to be reimbursed for the unpaid patient share of costs under the Medicare program. Under the contract, the hospital will pay TCS $2.75 2 per account, regardless of collections for maintenance of the systems and the staff to operate it. The contract is for the period July 1, 1992, through June 30, 1993. It is estimated that 45,000 accounts will be referred to TCS during the contract period. The contract is estimated to generate receipts of $1,350,000 at a cost of approximately $125,000. This is consistent with collection experience and cost for Fiscal Year 1992. The hospital reserves the right to determine the number and value of accounts to be placed with TCS. No guarantee of dollar placements is made. The collection funds will be deposited in the Hospital Income Fund and payments will be made from that fund. The vice president for business and finance concurs. I recommend approval.

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

Approval of Contracts with HHL Financial Services and Great Lakes Medicaid, University of Illinois Hospital, Chicago

(28) The chancellor at Chicago recommends the approval of contracts with HHL Financial Services (formerly Hayt, Hayt and Landau) and Great Lakes Medicaid for the period of July 1, 1992, through June 30, 1993, and the delegation of authority to the comptroller to renew the agreements for an additional year. HHL and Great Lakes Medicaid will assist patients unable to pay for necessary medical care in filing and qualifying for Medical Assistance-No Grant (MANG) applications. Hospital staff provide a similar service to patients who are unable to pay for necessary medical care. HHL (since 1985) and Great Lakes Medicaid (since 1991) have supplemented

1 2

These accounts are delinquent by 90 days or more and of amounts under $1,000. The FY 1992 rate is $2.75 per account.