Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 265]

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1987]

UNIVERSITY OF ILLINOIS

255

Comptroller's Report of Investment Transactions through March 15,1987

(24) The comptroller presented the above report which includes transactions under Finance and Audit Committee guidelines and transactions under the comptroller's authority. A copy of this report is filed with the secretary of the board.

On motion of Mr. Hahn, this report was approved as presented.

Contract for Retroactive Rebilling, University Hospital, Chicago

(25) The chancellor at Chicago has recommended approval of a contract with Health. Management Services, Inc., for retroactive billing of hospital outpatient accounts under the Medicaid Ambulatory Care Reform Act. On February 18, 1987, the Illinois Department of Public Aid (IDPA) established a program to increase reimbursement amounts paid for certain outpatient procedures. The program authorizes rebilling at the new, higher rates retroactive to April 1, 1986. By June 1, 1987, reimbursement claims for these procedures (already billed at the lower rates) must be rebilled and delivered to Springfield. About 100,000 outpatient IDPA bills must be reprinted, reviewed, adjusted, reprinted again, and transferred to tape. Trial procedures at the University Hospital reveal that existing staff cannot accomplish this task by the due date. For this reason, and as with other teaching hospitals with large volumes of IDPA patients, outside professional services are the most effective means of performing this rebilling by the June 1 deadline. The rebilling to IDPA will realize an estimated $500,000 in gross revenue. An additional $500,000 in gross revenue is available through other aspects of the retroactive claims reprocessing services offered by this contract, including rebilling unpaid outpatient bills for which reimbursement is obtainable from a third party payor. The commission fee under the contract is tied to actual collection experience at rates of 30 percent on the first $250,000 and 25 percent on any amount in excess of that. It is estimated that in total this contract for retroactive claims reprocessing will yield $1 million in gross additional hospital revenue, at a (commission) cost of $262,500. Gross collections will be deposited to the Hospital Income Fund and payments under the contract made from the same source. Authority is sought to authorize the comptroller to enter into this agreement in accord with procedures set forth in University policy. The vice president for business and finance has recommended approval. I concur. O n m o t i o n of M r . H a h n , this r e c o m m e n d a t i o n w a s approved by the following v o t e : A y e , M r s . Calder, M r . Forsyth, M r s . Gravenhorst, M r .

Hahn, Mr. Howard, Mrs. Shepherd, Miss Smith, Mr. Wolff; no, none; absent, Mr. Logan, Governor Thompson. (The student advisory vote was: Aye, Mr. Filip, Mr. Starkeson; no, none.)

SECRETARY'S REPORT

The secretary presented for record appointments to the faculty and changes of status made by the president, resignations, terminations, leaves of absence, and retirements. A copy of the report is filed with the secretary.