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ILHIE Authority Budget and Finance Committee Meeting Minutes - May 19 2011 

The Budget and Finance Committee ("Committee") of the Board of Directors (the "Board") of the Illinois Health Information Exchange Authority ("Authority"), pursuant to notice duly given, held its Inaugural Meeting at 12:00 p.m. on May 19, 2011, at the offices of the Office of Health Information Technology ("OHIT"), State of Illinois James R. Thompson Center, 100 W. Randolph, Room 2-201, 100 W. Randolph St., Chicago, IL 60601.

Committee Members Present:

  1. HFS – Director Julie Hamos
  2. Mr. Mark Neaman (by telephone)
  3. Dr. Bruce Wellman (by telephone)
  4. Dr. Cheryl Whitaker

OHIT Staff Present:

Laura Zaremba
Mark Chudzinski
David Fagus

Call to Order and Roll Call

Mr. Chudzinski, Acting Secretary of the Board, confirmed the presence of the Members of the Committee noted above (with Dir. Hamos joining the meeting at 1:35 pm.). The ability of Mr. Neaman and Dr. Wellman to clearly participate by telephone was confirmed, and no objection was expressed to their participation in this manner.

Committee Chair

In the absence of a Chairperson for the Committee, Dr. Cheryl Whitaker offered to preside as Chair for this meeting, and to facilitate the convening of future Committee meetings until such time as the Committee had a Chairperson. She noted that in connection of the forthcoming deliberations of the Governance and Nominating Committee, she anticipated having further discussions with members of the Board regarding their interest and availability for various vacant positions, and that she would be sharing recommendations in regard to vacancies in advance of the next Board meeting on June 22. Following brief discussion, the members of the Committee agreed with the proposal.

Treasurer’s Report

It is anticipated that the Committee will be receiving periodic reports from the Treasurer regarding the Authority’s financial status. At the present time, however, no Treasurer has been appointed by the Authority; Mr. David Fagus, Chief Financial Officer of OHIT, also noted that the Authority at present had no resources, other than those being provided on the Authority’s behalf by OHIT, and therefore there is nothing yet of substance to report regarding the Authority’s current financial status.

Business Plan

Mr. Fagus initiated a presentation regarding the development of the Authority’s business plan, which was being developed with the assistance of Navigant Consulting, Inc., which had been retained by OHIT in a competitive bid selection process initiated in November, 2010. The contract with Navigant provides OHIT two optional renewals to have Navigant update their work product, at approximately April 2012 and October 2012. During the brief Committee discussion, it was noted that OHIT had obtained Navigant’s services on favorable terms.

  1. General Assumptions

Mr. Fagus noted that the overarching assumption of the business plan is that while the HIE must generate enough revenue to cover the operations, it must also be as lean as possible to insure that the cost to participants is affordable and provides a value that exceeds the cost.

Of the three primary stakeholders (Payers, Hospitals, Providers), it has been determined that Payers are in the best position to provide funding for the IL HIE start up. Both the Hospitals and the Providers are, have or will be investing in developing the infrastructure, and training the staff, necessary to enable them to connect to the HIE. The extent of the participation of the Federal Medicare and Medicaid programs in the build out of the IL HIE has yet to be determined.

Early adopters will receive an operational expense discount to encourage early participation.

  1. Value Calculator

Several items were noted by Committee members in the course of their review of the model as needing additional support, more research, or justification, including: Value to Providers; Benefit to Medicaid; Scaling Value to Hospital Size; Cost Avoidance; Participation of Skilled Nursing Facilities; Value for Skilled Nursing Facilities. Mr. Fagus will explore these items with Navigant during the next revisions to the model.

  1. Costs and Revenue

Cost – The cost figures initially used in the model are based, in part, on the cost estimates used by the State of Pennsylvania in its development and implementation of an HIE; a review by Navigant of the HIE implementations in other States suggested that Pennsylvania’s HIE most closely resembled the one being proposed for Illinois. Revisions to the initial Costs component will begin in September once a vendor for the IL HIE core services has been selected following the issuance of OHIT’s RFP, and more detailed costs are known. It is anticipated that the RFP will be issued in July, and that revision to the model’s Costs will be completed in September.

Revenue - Revisions to the model’s initial Revenue component will quickly follow the work on Costs. It is anticipated that this work will be completed in September.

Pricing - Revisions to the model’s initial Pricing component will be the final piece, and will be developed once all of the components above have been completed. It is anticipated that this work will be completed in October.

  1. Stakeholder Meetings

The Committee was informed regarding the discussions that OHIT had had with various stakeholders concerning the Value Calculator and the general assumptions reflected in the business plan. Valuable input was gained from such discussions to inform OHITs further development of both topics.

OHIT Budget Update

The Committee was informed that the Authority currently has no funds of its own available; funding of any expenses that the Authority may currently incur will be provided through OHIT. In the course of the ensuing discussion, the Committee was advised that the business plan currently did not make provision for the distribution by OHIT to emerging local/regional HIE initiatives in Illinois of any of the $18.8M in Federal grant funds that OHIT had received under the Federal ARRA program.

Local HIE Update

Mr. Fagus provided a brief overview regarding emerging initiatives aimed at the development and implementation of HIEs in local/regional settings in Illinois. A further detailed examination of the status of such initiatives was defer="defer"red to a future meeting, as representatives of these local/regional initiatives have been invited to make presentations at the June 22, 2011 meeting of the Board of Directors.

Public Comment

There were no comments offered from the general public.

Adjournment

The meeting was adjourned at 1:50 p.m.

Minutes submitted by: Mark Chudzinski, Acting Secretary