Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 613]

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602

BOARD OF T R U S T E E S

[June 12

Contract, Collection of Accounts Receivable, University Hospital, Chicago

(23) T h e chancellor at the Chicago campus has recommended approval of a contract to assist the University of Illinois Hospital in the collection of certain patient accounts receivable under the present billing system. T h e implementation of a new billing system ( M E D I P A C ) , approved by the board on May 16, 1985, created a need to contract for collections remaining in the present system. By contracting for the handling of old accounts, the Patient Accounts Department will be able to concentrate on implementing the new system and thereby keep bills current. 1 The hospital invited proposals for the contract in question, and three companies, all familiar with the hospital system, submitted proposals. GC Services Corporation of Elk Grove Village submitted the proposal judged most beneficial to the University. GC Services Corporation will bill or rebill commercial insurance and selfpay inpatient accounts and all outpatient accounts. T h e fee, expressed as a percentage of collections for these services, will be: Age of Account 0-60 days 61-120 days 121-180 days 181-plus Inpatient 4 percent 7 percent 11 percent 25 percent Outpatient 10 percent 15 percent 20 percent 25 percent

It is anticipated that patient accounts of nearly $60 million will be assigned to the firm, with estimated collections of approximately $26 million, for a fee of approximately $3.4 million. T h e contractor has agreed to deposit with the University $2 million in advance of these collections. T h e contract will begin at least two weeks before the hospital converts to the new system and will terminate in approximately one year. Funds collected under the contract will be deposited in the Hospital Income Fund. Funds will be available to pay the fee for this service from the proceeds collected. T h e vice president for business and finance concurs in the recommendation. I recommend approval. O n m o t i o n of M r . L o g a n , this r e c o m m e n d a t i o n w a s a p p r o v e d by t h e f o l l o w i n g v o t e : Aye, M r s . D a y , M r . F o r s y t h , M r s . G r a v e n h o r s t , M r . H a h n , M r . Logan, M r . M a d d e n , M r s . Shepherd, Miss S m i t h ; no, n o n e ; absent, M r . H o w a r d , Governor T h o m p s o n . ( T h e s t u d e n t a d v i s o r y v o t e w a s : Aye, M r . B e c k e r , M r . L a m m ; n o , none.)

Contract with Hayt, Hayt, and Landau, University Hospital, Chicago

(24) On November 14, 1985, the Board of Trustees approved a contract with the law firm of Hayt, Hayt, and Landau to assist the University Hospital in filing Medical Assistance-No Grant (MANG) applications for patients needing care but unable to pay for it. T h e chancellor at the Chicago campus now recommends that the contract be renewed for the period July 1, 1986, through June 30, 1987. During the past five months, the firm has provided the hospital with employee training and a computer program with which to track applications. Although the

1 The Patient Accounts Department will continue to bill and collect Medicare, Medicaid, and Blue Gross inpatient accounts established on the present system.