12-01-95 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.