Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 549]

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536

BOARD OF TRUSTEES

[February 15

services. Extended negotiations have failed to resolve questions raised by Hawaii concerning the liability provision of the contract, Article IX, which states: Participating institution agrees that the University [of Illinois], its agents, servants, and employees will not be liable for any damages that the participating institution may sustain or become liable for on account of injury to or death of personnel, or on account of damages to or destruction of property, to the extent that such loss or damage arises out of use of equipment and/or services provided by the University under the terms of this agreement. The attorney general of the state of Hawaii has rendered an opinion that the University of Hawaii should not waive its right of legal recourse through acceptance of the existing provision, and, accordingly, has proposed that Article IX be modified by adding the following sentence to the present language: In no event will the participating institution indemnify the University [of Illinois] against the consequences of the University's negligence and omissions, or against claims by third parties arising therefrom. The acting dean of the Graduate College and the chancellor of the UrbanaChampaign campus have recommended acceptance of the proposed modification. The vice president for administration supports the recommendation. I concur.

On motion of Mrs. Rader, this recommendation was approved. Legislation Relating to Medical Service Plan

(14) Under current legislation, charges for medical and surgical services rendered at the University of Illinois Hospital by medical doctors on the staff may be established and collected only by the doctors, and then only pursuant to a plan organized and administered by them and approved by the University (Chapter 23, Section 1375, Illinois Revised Statutes). The chancellor at the Medical Center campus has recommended that amendatory legislation be sought to permit doctors of dentistry on the staff of the University to charge for their professional services and to participate in an approved service plan. In addition, present authority to make charges for professional services rendered at the University of Illinois Hospital would be extended to include such services when rendered at any other hospital, clinic, outpatient department, or office under the operation and control of the University, or elsewhere when the services are rendered pursuant to a University contract, program, or activity. The establishment and disbursement of professional fees would continue to remain under the supervision and control of the members of the plan(s), but the University would be permitted to assist in the collection process. I concur. O n m o t i o n of M r . L i v i n g s t o n , these r e c o m m e n d a t i o n s w e r e approved.

Risk Management Self-Insurance Program

(15) On July 21, 1976, the Board of Trustees established a program of selfinsurance for the purpose of paying certain types of claims which had previously been covered by insurance contracts with Continental Insurance Company and Glacier General Assurance Company. The program made provision for risk financing and management for University liabilities and certain claims asserted against trustees, officers, employees, and named students for actions taken by them within the scope of their University duties, relationships, or employment. The program was made effective August 1, 1976. This action was taken pending further