04-08-94 Trustees: Computing Fees, Health Coverage, Etc.

ACTIONS OF THE BOARD OF TRUSTEES ON APRIL 8
TUITION COMPARISONS, COMPUTING FEES, HEALTH INSURANCE, OTHER

Ohio State Tuition Lower Than Average

     COLUMBUS -- Resident undergraduate fees at The Ohio State
University continue to be a good buy.

     William J. Shkurti, vice president for finance, shared the
results of a fee study with university trustees Friday (4/8).
The study shows that tuition for Ohio undergraduates is
substantially less than the average.

     At $2,940 a year, Ohio State ranks seventh among the Big Ten
public universities, 15 percent below average, and 10th among
Ohio's 13 state universities, 9 percent below average.  The
figures are for fiscal year 1994.

     "This demonstrates that Ohio State continues to be one of
the best buys in the country," Shkurti said.

     Among Big 10 public universities, Michigan had the most
expensive annual resident undergraduate fees, at $5,119, while
Iowa was 10th at $2,352.  The average was $3,470.

     Among state universities, Miami led in costs at $4,226.
Only Central State, Youngstown State and Shawnee State
universities charged less than Ohio State for tuition and fees,
with Shawnee at the bottom, $2,529.  The state average is $3,231.

     Since 1989, Ohio State's resident undergraduate fees have
dropped from sixth place to seventh among Big 10 public
universities.  Other Ohio State fees have made the university
more expensive compared to their counterparts.  For example, Ohio
State ranked sixth in non-resident undergraduate fees in 1989.
It is now fifth.  In terms of resident graduate and non-resident
graduate fees, Ohio State ranked fifth in 1989.  Today, Ohio
State has the fourth most expensive resident graduate fees.  Non-
resident graduate fees are $11,082, trailing only Michigan's
$16,165.

     The benchmarks were compiled by Eric Kunz, assistant vice
president for university budget planning in the Office of
Finance.

Computing Fee for Business Students

     Board members discussed the computer laboratory fee assessed
to students in the College of Engineering.  In addition, they
heard about a recommendation from the college to extend the fee
to students who are majoring in computer and information science
in the College of Mathematical and Physical Sciences, and another
recommendation from the Max M. Fisher College of Business to
institute a similar fee beginning autumn quarter.  No action was
taken.

     According to Edward Ray, senior vice provost, the Office of
Academic Affairs recommends continuing the computer lab fee in
the College of Engineering.  That fee, $120 per quarter for full-
time undergraduate and graduate students, was approved by the
board in December 1992 with a requirement that the fee be
reviewed annually by Academic Affairs until the fee is eliminated
or replaced by a university-wide computing fee.

     Ray noted that the experience gained from implementing the
computing fee was used to modify the plan submitted last year by
the College of Business.

     The Fisher College of Business proposal calls for a fee
equal to 10 percent of undergraduate and graduate in-state
tuition, estimated to generate $800,000 the first year.

     According to the proposal, the hardware and software in the
business labs border on the obsolete, with most new software
incompatible with the computers in place.  While a recent major
gift by alumnus Max M. Fisher will be used to purchase
information technology in new facilities being planned for the
college, the money is not available until the new facility opens
in 1998.  A delay of another year would mean less ability to
attract the best students and at least 1,500 students leaving the
university trained in less than an optimal manner.

     The proposal calls for fees to be used only for equipment,
software and support directly benefiting students.  This includes
replacing all equipment in Hagerty Hall, purchasing a variety of
software appropriate to each business area, increasing hours
computer labs are open, and creating a presentation room, and,
eventually, opening a new 100-seat lab and making other
improvements.

     To be implemented, recommendations for the Engineering fee
to be extended and the Business fee to be enacted will require
formal action by the Board of Trustees at a subsequent meeting.

     Beyond those recommendations, Ray said, "We do not
contemplate bringing any additional computing laboratory fee
proposals before the Board of Trustees unless they are
university-wide and subsume these college plans."

Hiring of Architects Approved for Mansfield, Medical Center

     Trustees authorized employment of architects and engineers
to design the Conard Learning Center, a two-story addition to
Bromfield Hall on the Mansfield campus.  The addition is to
provide about 10,190 square feet of space to house instructional
support programs, including computer labs, classrooms, and a two-
way video classroom.

     The total estimated project cost is $1,425,000, including
$1,225,000 for construction.  The Mansfield campus is to provide
$525,000.  The remainder will be sought in a future capital
appropriation.

     The board also approved employing architects and engineers
and to request construction bids for the repair of the brick
exterior facing of Rhodes Hall.  The estimated total project cost
is $244,500, with funding provided by University Hospitals.

Recommendations for Controlling Health Care Costs

     Ohio State's Health Care Advisory Committee has designed a
plan to significantly lower the university's cost increases for
medical benefits and the cost increases for faculty and staff who
use the university's network of health care providers.  The
committee was appointed by Linda Tom, vice president for human
resources.

     Tom, along with W. Randy Smith, associate professor of
geography; Stephen Loebs, chairperson of the Division of Health
Services Management and Policy, and Nicholas Maul, director of
benefits, shared the recommendations with the board.

     The committee recommended a new design in employee/employer
premium sharing, retaining all four medical plans while
differentiating on costs, and sharing risk with the University
Medical Center beginning in July 1995.

     Under the recommendations, Ohio State plans to designate
University Prime Care, the university-managed health care plan,
as the base plan offered faculty and staff.  Plans with out-of-
network providers have higher costs and therefore employees who
use them will have higher premiums.

     As a result, faculty and staff not enrolled in Prime Care
will experience premium increases up to about $300 per year for
family coverage, the panel said.  Those enrolled in Prime Care
will see their rates rise about $50 per year for family coverage.

     Beginning next year, the university will have capacity for
all faculty and staff who wish to join Prime Care and thus avoid
higher premium increases.  For this interim year, the committee
has asked the university administration to consider the $300
premium increase in the salary budget to be delivered July 1.

     This is a significant plan for containing medical plan costs
that does not rely primarily on cost-shifting to employees,
according to Tom.  Further, containing these costs allows Ohio
State to focus resources toward other university priorities, such
as salary budgets.  In the past, medical plan cost increases have
constrained the university's ability to deliver salary increases.

     Premium increases for fiscal 1995 will take effect July 1
and will be announced at the end of April in enrollment
information mailed to faculty and staff.  Representatives of the
committee and Office of Human Resources will be meeting with all
colleges and administrative units to explain the changes during
the next several months.

     According to Tom, the University Medical Center will
collaborate with Human Resources and OSU Managed Care Systems to
develop a capitation plan of funding that would begin July 1,
1995.

     That plan would involve moving from a fee-per-service system
to a system of payments based on a pre-established annual budget
amount per employee.  This would provide an incentive to the
medical center to more efficiently manage the medical care of
enrollees.  The goal is to improve cost-effectiveness of medical
services and lower the rate of cost increases for employees and
the university.

Other Business

     In other actions, trustees:

     =FE Heard an update on university restructuring from Richard
Sisson, senior vice president for academic affairs and provost.
     =FE Gave Janet G. Pichette, vice president for business and
administration, authority to negotiate agreements with other
jurisdictions for the use of university law enforcement officers.
     =FE Discussed insurance and risk management with James L.
Nichols, university treasurer.

                                #

Contacts:  Eric Kunz, (614) 292-9990;
Jill Morelli, University Architect, (614) 292-4458;
Linda Tom, vice president for human resources, (614) 292-8993.

Written by Tom Spring, 292-8309.


[Submitted by: GERSTNER  (gerstner@ccgate.ucomm.ohio-state.edu)
               
Fri, 08 Apr 1994 14:19:30 -0500 (EST)]
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