2666                                       JOINT RESOLUTIONS                           No. 37

No. 37

(Senate Joint Resolution No. 70)

A Senate Joint Resolution concerning

University of Maryland Hospital

FOR the purpose of urging the Governor to appoint a
special oversight body to insure the expeditious
implementation of cost reduction measures in the
University Hospital.

WHEREAS, The General Assembly requested the

Department of Budget and Fiscal Planning    in 1974 to have

a management analysis undertaken of the University
Hospital; and

WHEREAS, The Governor concurred and provided
$250,000 for this purpose; and

WHEREAS, A consultant contract was awarded to the
Medicus Systems Corporation, nationally recognized
experts in the field of hospital administration; and

WHEREAS, The final report reveals that the Hospital

has over $40,000,000 in Accounts Receivable

could obtain an estimated $11,000,000 one—time
"windfall" cash collection

            could save $8,000,000 annually by implementing

better billing and cost allocation systems

could save over $1,500,000 annually through
improved manpower productivity measures

could reduce the cost of data processing
services over $400,000 annually

could realize additional manpower savings in
the major departments of nursing and housekeeping not
surveyed in this study; and

WHEREAS, The University has established a Hospital
Committee within the Board of Regents, but it does not
serve as a truly independent governing board according to
the Medicus Report; and

WHEREAS, It is deemed advisable to supplement the
Hospital Committee with a special oversight body until
such time as required for the Legislature to review the
organization recommended by Medicus; now, therefore, be
it