Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 497]

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BOARD OF TRUSTEES

[February 16

The first change is the result of an increase of 2 credit hours in an adapted physical education course taken by physical education and kinesiotherapy majors in Options I and II to fulfill State certification requirements. The second revision comes as the result of an increase by the College of Education of 1 hour in an education course required for Option I and II majors. T h i s report w a s received for record.

Tuition Increase, Executive MBA Program, Urbana

(7) In January 1982, the Board of Trustees approved an increase of $815 in the tuition charged students in the Executive Master of Business Administration Program at the Urbana-Champaign campus, raising that tuition to $4,765 per year. The dean of the College of Commerce and Business Administration and the chancellor at the Urbana-Champaign campus now have recommended an increase of $385 — to a total of $5,150/ The proposed increase responds primarily to the need to broaden the program and meet rising costs. Henceforth, the tuition for this program will be reviewed annually, in concert with other tuition adjustments. The increase proposed will apply to the Executive MBA class entering in the fall of 1984. I concur in this recommendation. O n m o t i o n of M r . H o w a r d , this r e c o m m e n d a t i o n w a s approved.

Agreement for Prepaid Medical Service, University Hospital, Chicago

(8) The chancellor at Chicago has recommended approval of a contract with the Blue Cross/Blue Shield Health Assurance Plan (HMO Illinois, Inc.) to designate the University of Illinois Hospital as a health-care provider site for subscribers to benefits provided by HMO Illinois, the largest health-maintenance organization in the State. A unit to administer the agreement, to be known as the Ulini Health Care Organization ( I H C O ) , would be established in the University Hospital. Subscribers of HMO Illinois, Inc. will be given the option of selecting the University from among a number of health-care provider sites. The University will be obliged to provide outpatient health-care services and physician services in accord with precstablished schedules of benefits to subscribers and their dependents if the University is selected. In rctum, the University will receive preestablished capitation payments for each month during which the subscribers and their dependents are entitled to benefits. During the initial contract year, 85 percent of the capitation payments will be allocated to the Medical Service Plan and the balance treated as clinic charges. A separate per diem payment will be made to the University Hospital (75 percent to the Medical Service Plan and 25 percent to the hospital) for inpatient hospital charges, and the University will be entitled to incentive payments if the days of hospitalization are under preestablished minima. The agreement requires the University to arrange with other health-care providers to make health care services available in the event that services are not provided in the University of Illinois Hospital. It also obligates the University to establish a system for prior review of admissions and extensions of stays and to participate in a limited subscriber grievance procedure. The contract is for a one-year period and is renewed automatically unless either party terminates it, on 90 days' notice. The allocation of capitation payments during subsequent periods will be adjusted to reflect utilization experience between the clinic and physicians' services. Since the capitation fee will cover both outpatient hospital charges and physicians' fees, the Medical Service Plan will receive fees in accord with an arrangement agreed to by the hospital and MSP. The vice president for business and finance concurs in the recommendation.

1 The general student charge connected with the program also h u been increased by 1265, to II ,600. The total program cost, should the tuition increase be approved, will become $6,750.