Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 608]

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596

BOARD OF TRUSTEES

[May 9

for two additional one-year periods. The UIH&C financial obligation for this contract is based on the volume of lithotripsy patient referrals and the negotiated rates for the services. It is estimated that annual payments will be about $200,000. The Fiscal Year 1997 operating budget request to be presented to the Board of Trustees will include hospital income funds for the payment of this contract. The vice president for business and finance concurs. I recommend approval.

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

Contract Renewal for Organ Transplantation Processing, University of Illinois Hospital and Clinics, Chicago

(10) The chancellor at Chicago recommends approval to renew the contract for Organ Transplantation Processing Services with the Regional Organ Bank of Illinois (ROBI). ROBI has been designated by the United States Healthcare Financing Administration as the regional independent organ procurement agency for the Chicago Metropolitan Area. The purpose of ROBI is to provide a single, coordinated organ and tissue recovery program in compliance with State and Federal statutes and regulations. ROBI will supply organs, tissues, and histocompatibility testing for its accredited transplant programs. The contract renewal period will be July 1, 1996, to June 30, 1997. It is also recommended that the comptroller be delegated authority to renew the contracts for four additional one-year periods. The financial obligation for this contract is based on the volume of organ transplantation processing services and the prevailing ROBI rate for these services. It is estimated that annual payments will be approximately $3,240,000. It is expected that organ procurement costs will be reimbursed by third-party payors. Medicare, which covers approximately 60 percent of kidney transplant services, pays the hospital as direct pass-through for all costs related to kidney procurement. Medicaid reimburses the hospital at the University's standard negotiated per diem rate with the Illinois Department of Public Aid. Commercial insurance companies pay at their stated policy terms and HMO's pay at their prevailing negotiated contract terms with the hospital. The Fiscal Year 1997 operating budget request to be presented to the Board of Trustees will include hospital income funds for the payment of this contract. The vice president for business and finance concurs. I recommend approval.

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