Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 232]

EXTRACTED TEXT FROM PAGE:

1985]

UNIVERSITY OF ILLINOIS

221

Whereas the University has determined to establish a separate trust under its authority and control to obtain approval to operate the University H M O and thereby to satisfy the regulation of the Department of Insurance, Now, Therefore, Be It, and It Is Hereby, Resolved by the Board of Trustees of the University of Illinois that a Trust is constituted in accordance with the laws of the State of Illinois for the following purposes and uses: 1. To do all things necessary to apply for authority from the Illinois Department of Insurance, the Illinois Department of Public Health, the United States Public Health Service, and United States Department of Health and H u m a n Services to operate a Health Maintenance Organization. 2. To do all things necessary to carry on the business of the Trust, as more specifically provided in the Trust Agreement, a copy of which has been filed with the Secretary of the Board and is incorporated by reference herein. 3. To establish various committees and boards, as may be required by State law to operate a Health Maintenance Organization. 4. T o elect officers and establish bylaws, rules, and regulations for the efficient conduct of its business. 5. To empower various designees to act in its behalf. 6. T o provide appropriate reports to the University and to various State agencies as may be required by law. 7. To account for and return to the University any assets in its possession as of the time of its termination. It being a condition of the Trust that the Trustees thereof will enjoy no powers greater than those enjoyed by this Board of Trustees. Be It Further Resolved that this Board of Trustees does hereby make, constitute, and appoint Galey S. Day, William D. Forsyth, Jr., Susan L. Gravenhorst, Ralph C. Hahn, George W. Howard I I I , Albert N. Logan, Dean E. Madden, Nina T. Shepherd, and Ann E. Smith as the initial Trustees of the Trust. Be It Further Resolved that the sum of $300,000 is hereby deposited with the Trust for the purpose of establishing initial minimum capitalization and a special contingent reserve fund for the H M O . Be It Further Resolved that the University is authorized to enter into a service agreement with the Trust to administer the Trust's H M O and to provide health care services to H M O subscribers. Be It Further Resolved that the President of the Trust, in addition to those powers enumerated in the Trust Agreement, is hereby specifically delegated the authority to take all steps and to do all things necessary and required by the Illinois Department of Insurance, the Illinois Department of Public Health, and the various Federal agencies enumerated above to obtain approval to operate an H M O under the Illinois Health Maintenance Organization Act and relevant Federal enactments; to establish mechanisms for the purpose of appointing a grievance committee and advisory board, as may be required by law; to act as the designee of the Trustees for all purposes as may be specifically established in the Trust Agreement; and to enter into a service agreement with the University of Illinois to administer the H M O established by the Trust and to provide health-care services to the subscribers thereto. Be It Further Resolved that the Trustees hereby adopt the Bylaws of the Trust as attached to Exhibit B of die Trust Agreement.

In accord with die trust agreement and die recommendation as presented, die Board of Trustees meeting was adjourned at 2:25 p.m. The