96-07-12 TRUSTEES: Trustees Approve Funds for Managed Care Pilot, A.R.M.S.

TRUSTEES APPROVE FUNDS FOR MANAGED CARE PILOT, A.R.M.S.  

     COLUMBUS -- The Ohio State University Board of Trustees 
on Friday (7/12) voted to form a not-for-profit corporation 
to participate in a managed care pilot program.  The 
corporation has the working title of the Ohio Health 
Alliance.  Trustees also voted to provide $6 million to 
implement the human resources portion of the Administrative 
Resource Management System.

Ohio Health Alliance

     The alliance is a joint effort of the University 
Medical Center and U.S. Health to participate in the 
Medicare Choices pilot being conducted by the Health Care 
Financing Administration.  Medicare Choices is a federally 
sponsored demonstration project to expand the number and 
types of Medicare managed care products offered to senior 
citizens.

     The two groups jointly submitted an application to 
participate in the program.  Their proposal is one of 25 
that has been accepted as a finalist for participation.  If 
selected, the alliance would develop and deliver a more 
attractive, efficient and comprehensive program of services 
to seniors in Ohio.

     Trustees also authorized the alliance to spend up to 
$1 million from University Hospitals funds to develop and 
implement the Medicare Choices product.

     This is the first joint managed care effort for the 
Medical Center and U.S. Health.  It in no way reflects a 
merger of services, but rather a joint effort to offer 
services to Medicare recipients.

     "We want to work together in areas that make sense, 
such as this Medicare managed care program, while at the 
same time maintaining our own identity," said Sue Jablonski, 
director of communications and marketing for University 
Hospitals.

Administrative Resource Management System

     The board approved spending an additional $6 million 
for the Administrative Resource Management System (A.R.M.S.) 
project.  The money will be used to proceed with 
implementation of the human resources portion of the system 
during the next three to four months and to continue a 
review of the financial system.

     "The human resources system is going forward as 
planned," said John Ellinger, A.R.M.S. project director.

     The human resources system will be implemented during 
the next year and a half.

     Now that a needs assessment has been completed for the 
university's procurement systems -- used for purchasing, 
accounts payable and asset management -- A.R.M.S. will ask 
the board to speed implementation of those recommendations.

     "The procurement systems -- which previously hadn't 
been included in A.R.M.S. -- are moving forward at a much 
faster rate," Ellinger said.

     Preliminary findings of the needs assessment show that 
significant financial benefits could be realized by 
incorporating procurement systems into A.R.M.S.

     "The procurement systems need an overhaul," said 
William J. Shkurti, vice president for finance.  "The 
question of exactly when is still subject to determining a 
suitable funding method."

     Testing of the PeopleSoft software for the financial 
portion of A.R.M.S. was not successfully completed, so the 
schedule for implementing that package may move back a year, 
to July 1, 1998.

     PeopleSoft expects to release a new version of its 
financial systems software in late summer and A.R.M.S. 
evaluators will complete testing then.

     "Moving back the general ledger portion was a hard 
decision, but it was a prudent one." Ellinger said.  "We 
don't want to implement something that creates a new problem 
for people to handle.

     Because fiscal years begin July 1, administrators have 
no choice but to move back the implementation date by a full 
year, if the original timetable is not met.  If a new 
general ledger system is implemented during a fiscal year, 
all of the university's financial transactions -- about 1 
million a month -- on the old system would have to be 
transferred into the new system.

     This revised implementation schedule will allow for a 
smoother, more gradual transition for users in academic and 
support units.  It also allows a more manageable training 
schedule, Ellinger said.

     "PeopleSoft's financial products are widely used in the 
private sector, but the public sector products are still 
fairly new," Shkurti said.  "It's important that we not get 
behind the pack because of the need to reprogram computers 
to deal with the year 2000, but we don't want to be so far 
ahead that we're testing the software for other 
institutions."

     The money approved by trustees is in addition to $19.7 
million already allocated.  To date, $18.5 million has been 
spent on needs assessments, as well as software evaluation, 
design, testing and computer hardware.

     A.R.M.S. project administrators will return to the 
board in the fall with final recommendations on timing for 
the general ledger and procurement systems, as well as 
recommended budgets and funding sources.  During the summer, 
the A.R.M.S. team will consult with the Council of Deans, 
Senate Fiscal Committee and other groups about the next 
phase of the project.

                             #

Contacts:  Sue Jablonski, (614) 293-8600; John Ellinger, 
(614) 688-3315; or William Shkurti, (614) 292-9232.

Written by David Bhaerman, (614) 292-8422.


[Submitted by: Von Reid-Vargas (ereid@magnus.acs.ohio-state.edu)
               
Fri, 12 Jul 1996 15:53:11 -0400]
All documents are the responsibility of their originator.