Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 553]

EXTRACTED TEXT FROM PAGE:

1988]

UNIVERSITY OF ILLINOIS

543

improve cash flow by quickly identifying and referring bad debt accounts to collection agencies. In addition, the use of the system will provide 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 Medicare. Initially, 100,000 accounts with a value of $12 million will be turned over to TCS, with an anticipated yield of $2.4 million in gross receipts. Payment to TCS for this service will be 20 percent of gross collections. In subsequent years, approximately 25,000 accounts will be turned over to TCS. Under the terms of the contract, within six months the University may exercise an option to purchase the computer system itself for a one-time cost of $295,000. Under this option, the hospital will pay TCS $2.50 per account regardless of collections for maintenance of the system and the staff to operate it. Any payments made to TCS prior to exercise of the option will apply in full to purchase price. The contract is for the period June 1, 1988, through May 31, 1989. The University reserves the right to determine the number and value of accounts to be placed with TCS. No guarantees of dollar placements are made. The funds will be paid to and from the Hospital Income Fund. The vice president for business and finance concurs. I recommend approval.

On motion of Mr. Forsyth, this recommendation was approved by the following vote: Aye, Mrs. Calder, Mr. Forsyth, Mrs. Gravenhorst, Mr. Hahn, Mr. Howard, Mr. Logan, Mrs. Shepherd, Miss Smith, Mr. Wolff; no, none; absent, Governor Thompson. (The student advisory vote was: Aye, Mr. Evenson; absent, Mr. Wylie.)

Contract for Cleaning Services, College of Dentistry, Chicago

(10) On June 12, 1986, the Board of Trustees approved the award of a contract to Alpha Building Maintenance Co., Oak Lawn, for $230,400, for cleaning services in the College of Dentistry, Chicago, for the period July 1, 1986, through June 30, 1987, with a two-year option to renew the contract under the same terms and conditions. On May 14, 1987, the board approved the extension of the first option through June 30, 1988, under the same terms and conditions. The president of the University, with the concurrence of the appropriate administrative officers, recommends that the second option to extend be exercised, subject to the availability of funds, for the period July 1, 1988, through June 30, 1989, at the same annual cost of $230,400. Funds will be included in the Chicago Physical Plant institutional funds budget authorization request to be submitted to the Board of Trustees for Fiscal Year 1989. (Any additions or deletions in work will be implemented by a written change order, should the need arise. Such adjustments will be based upon the unit prices submitted by the contractor in his original bid proposal.)

On motion of Mr. Forsyth, this recommendation was approved by the following vote: Aye, Mrs. Calder, Mr. Forsyth, Mrs. Gravenhorst, Mr. Hahn, Mr. Howard, Mr. Logan, Mrs. Shepherd, Miss Smith, Mr. Wolff; no, none; absent, Governor Thompson. (The student advisory vote was: Aye, Mr. Evenson; absent, Mr. Wylie.)