30
November
1995
|
18:00 PM
America/New_York
Trustees: Corporation to Boost Southern Ohio Economy
TRUSTEES ESTABLISH CORPORATION TO BOOST ECONOMIC ACTIVITY,
APPROVE JOINT VENTURE WITH HARDING HOSPITAL
COLUMBUS -- The Ohio State University Board of Trustees
Friday (12/1) voted to establish a non-profit corporation to
boost economic development in southern Ohio and agreed to
enter into an agreement with Harding Hospital to jointly
provide and manage mental health care services.
In addition, trustees authorized up to $7 million to
begin implementing the plans and recommendations of the
Administrative Resource Management System (A.R.M.S.)
project. The board also reviewed a proposed plan for change
and improvements to the north academic core area as part of
the 1995 campus master plan and conducted other business.
Development corporation to help Southern Ohio businesses
An economic development organization, to be known as
the Southern Ohio Development Corp., will work to expand
economic development activities in southern Ohio.
University trustees authorized establish of the non-
profit corporation to further economic development programs
of Ohio State University Extension and the Alternative
Agriculture Enterprise Center, located in Hillsboro. The
Ohio General Assembly began funding the center in 1989 to
develop programs, serve as a catalyst for economic
development, and expand Extension's role in serving the
people of southern Ohio.
The center's responsibilities include assisting
southern Ohioans in developing specialty crops and
businesses, entrepreneurship, tourism, manufacturing, and
other activities designed to produce jobs and enhance family
income.
According to Bobby Moser, vice president for
agricultural administration at Ohio State, the center has
been successful in boosting economic activity in the area.
"Ohio State University continues to fill the
educational and research needs of the state, but in southern
Ohio we must go further," Moser said. "This region of the
state lacks many organizations necessary for implementing
new methods and opportunities. The establishment of the
Southern Ohio Economic Development Corporation assists in
filling this gap."
Moser said the non-profit corporation will allow for
continued growth and expansion of the center's efforts. The
non-profit coroporation will engage in entreprenuerial
activities which are ancillary to the university's teaching
and research missions.
The Southern Ohio Economic Development Corp. will
expand the outreach by developing additional services to the
private sector, and will extend university research findings
and educational information to citizens in the region.
Activities will include:
-- Assisting businesses and industries with hands-on
assistance in establishing new firms and expanding existing
businesses in the region.
-- Creating new market opportunities for alternative
and specialty crops.
-- Assisting small businesses in implementing knowledge
received through Extension.
Trustees authorized Moser to contribute up to $100,000
per year to the effort. However, Moser said Extension will
provide a grant of about $50,000 annually for two or three
years until the corporation becomes self-supporting.
Ohio State-Harding Hospital collaboration approved
Trustees voted to join Harding Hospital in Worthington
in managing and providing inpatient and outpatient mental
health services to the community. The board authorized the
university to enter into a joint venture agreement with
Harding to develop a more attractive, efficient, and
comprehensive program for the community and third-party
payors. The joint venture also will enhance teaching and
research in Ohio State's College of Medicine.
The board authorized spending $2 million to support the
venture and loaning up to $2 million to Harding Hospital for
its contribution to the joint venture.
The managed health care environment has reduced use of
Ohio State's neuropsychiatric facility, putting into
jeopardy the unit's continued financial stability. The
agreement was developed to expand the psychiatric
educational programs of both hospitals and to better compete
by broadening the scope of services, eliminating duplicate
services, and reducing costs.
Under the agreement, clinical services will be
integrated, with financial gains or losses shared equally
between the two hospitals. However, each hospital will
continue to operate as a separate entity in terms of
facilities, equipment, and employees.
The initial term of the joint venture is two years,
with a third year possible if the venture is within $500,000
of breaking even. According to university officials the
current combined annual operating deficit of the mental
health operations exceeds $3 million.
The agreement calls for a joint governing body and an
oversight committee.
Ohio State and Harding hospitals already cooperate on
health care. Last year, they established a joint
psychiatric residency program. In addition, Ohio State
opened a MedOhio Family Care Center on the Harding Hospital
campus on East Dublin-Granville Road.
The Harding Hospital Board is expected to vote on the
joint venture agreement at a meeting on Dec. 15.
Ohio State funds Administrative Resource Management System
Trustees authorized up to $7 million to begin the
implementation phase of the A.R.M.S. Project. The funds
will be used to purchase and license software, design and
test the system, and do preliminary system installation.
Started in November 1994, the A.R.M.S. Project is
redesigning the university's human resource and financial
processes and systems.
Many of the university's administrative computer
systems are more than 20 years old and are using outdated
technology. A.R.M.S will use state-of-the-art technology to
implement new human resource and financial processes and
systems, eliminating many form-driven procedures.
Faculty and staff members will be able to record
information on-line and will be able to have current
financial and human resource information in a variety of
formats whenever they need it. University officials expect
the A.R.M.S. Project to significantly improve the way the
business functions of the university support its academic
mission.
The A.R.M.S. Project is scheduled to be completed by
Jan. 1, 1998.
Board discusses plan for improving north academic core area
Trustees discussed the preparation of a plan for making
changes and improvements to the north academic core area of
the university.
The campus master plan that trustees approved earlier
this year calls for preparation of district plans for all
areas of the university to provide more detailed planning
and design guidelines for each area and to ensure that the
Master Plan's principles are advanced in a way that is
appropriate for the particular circumstances and
characteristics of each district. The plans will be
presented to the board for approval, beginning in February.
The first plan is for what is called the Academic Core
North District, which encompasses the area between High
Street, Lane Avenue, and, roughly, Herrick and Cannon Drives
and West 12th Avenue. The general guidelines address
landscape and architecture, with more specific guidelines
developed for 18 sectors within the district.
Internal debts lowered to $16.9 million
William J. Shkurti, vice president for finance,
reported that debts owed by various units to the university
have been reduced $5.5 million during the past year. Total
debt now stands at $16.9 million, down from $41.5 million at
the end of June 1992.
"I am especially encouraged by continued progress made
by the leadership of the colleges of Law, Dentistry, and
Engineering, as well as the Ohio Agricultural Research and
Development Center and the offices of Business and
Administration and Student Affairs in addressing chronic
financial problems they did not create," said Shkurti.
The vice president said that the Agricultural Technical
Institute, the Office of Minority Affairs, and the College
of Medicine will still be monitored for meeting debt
reduction goals and the Department of Athletics and central
university support of sponsored research will be monitored
to address cash flows and other issues.
Shkurti noted that the deficits are owed by individual
units to the university. He said the university's overall
budget is in balance and its financial condition is sound.
Miscellaneous actions
In other matters:
-- Ed Ray, senior vice provost, reported on the Early
Retirement Incentive program. Ray said that the replacement
of retirees by faculty at entry level salaries and the
elimination of 56 positions will generate continuing cash
savings or annual rate savings equal to $7.7 million. The
money saved will remain in the colleges and departments to
be reinvested.
Richard Sisson, senior vice president for academic
affairs, and David Williams II, vice president for student
affairs, presented Things Gone Right awards to several
offices in recognition of their efforts to make President
Clinton's October economic summit on the Columbus campus a
success. Recipients of the award are the Fawcett Center,
UNITS, WOSU, the Wexner Center, the university marching
band, University Police, and the offices of Physical
Facilities, University Communications, University
Development, Academic Affairs, Special Events, Reprographics
and Printing Services, and Finance.
-- The board approved non-mandatory transfers of $40.8
million between Current Funds and Non-current Funds,
including Endowment Principle, Annuity and Life Income,
Unexpended Plant, Renewal and Replacement, and Retirement of
Indebtedness funds, in compliance with state auditing
procedures. The funds are from fiscal 1995.
-- Trustees waived competitive bidding requirements for
101 purchases totaling $17.5 million, including 85 purchases
made from sole-source suppliers, nine for emergency reasons
and seven for sufficient economic reasons. The largest
single waiver, $7.56 million, was for the payment of service
fees for blood products for Ohio State's hospitals.
#
Contact: Bobby Moser, (614) 292-1889; R. Reed Fraley,
director, University Hospitals, (614) 293-5555; John
Ellinger, director, A.R.M.S. Project, (614) 688-3315,
ellinger.2@osu.edu; William J. Shkurti, (614) 292-9232.
[Submitted by: Von Reid-Vargas (ereid@magnus.acs.ohio-state.edu)
Fri, 1 Dec 1995 16:40:07 -0500]
All documents are the responsibility of their originator.
