Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 280]

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270

BOARD OF TRUSTEES

[May 14

Contract, Recovery of Patient Charges, University Hospital, Chicago

(19) The chancellor at Chicago has recommended the approval of a contract with Kapner, Wolfberg & Associates, Inc. (KWA), to assist die University of Illinois Hospital in identifying and billing third-party payers for unbilled patient charges. Hospital revenue has been lost because some inpatient charges in many departments are not captured. The contractor will identify those charges and prepare invoices for third-party insurance carriers. The hospital will be responsible for securing payment. The contractor also will submit listings to the hospital identifying the omitted charges by type and department of origin, and will supplement these listings with recommendations designed to eliminate the causes of the omissions. The contract with KWA will cover billings from February 1986 through approximately January 31, 1988. The hospital and contractor will share equally any recovered revenue, a standard agreement for this type of service. It is estimated that the hospital will net $500,000 in Fiscal Year 1988 from this contract. The vice president for business and finance recommends approval. I concur. O h m o t i o n of M i s s Smith, this r e c o m m e n d a t i o n w a s approved. By consensus, t h e b o a r d agreed that o n e roll call v o t e w o u l d b e taken a n d considered t h e v o t e o n e a c h a g e n d a i t e m nos. 2 0 t h r o u g h 3 3 inclusive. T h e r e c o m m e n d a t i o n s w e r e individually discussed but acted u p o n at o n e time. ( T h e record of board action appears at t h e e n d of e a c h item.)

Amendment of Electric Service Agreement with Illinois Power Company

(20) In January 1967, the Board of Trustees authorized an agreement with Illinois Power Company for the purchase of electric energy for the UrbanaChampaign campus. Annual renewals have continued to the present, at rates advantageous to the University. During 1984-85, the engineering firm of Henneman, Raufeisen & Associates, Inc., was retained to furnish recommendations for increased electric load requirements for: (1) the north campus area (due to the development of the Beckman Institute, Microelectronics Center, and the Digital Computer Laboratory Addition); and (2) for the south campus area (to serve the Plant Sciences Greenhouse/ Headhouse, Animal Sciences Addition, and the Plant and Animal Biotechnology Laboratory). The consultants advised that two additional electric distribution centers be constructed: The North Distribution Center and the South Distribution Center. The 1967 agreement anticipated expansion in service, and Illinois Power is able, in accord with the University's requirements, to provide such expansion, including backup service and ability to maintain load capacity. Under a proposal developed by Illinois Power and the Urbana Operation and Maintenance Division, the University of Illinois, through the Capital Development Board, would provide $801,600 and Illinois Power Company would provide $1,480,150 of the total estimated cost of $2,281,750 to accomplish this work. The two new distribution centers would ensure electrical service to the north and south campus areas at the same favorable rates available to the remainder of the campus under the 1967 agreement as amended. If the University were to discontinue the purchase of electricity for the new centers, it would be liable for certain capital costs incurred by Illinois Power Company in extending its service to these centers. Until December 31, 1993, the