September 4, 1980-The Michigan Daily
J' hospital plan chosen;
regents OK new facility
By MITCH STUART
iversity Regents unanimously;
ted a general architectural design
;he $210 million-plus University'
?ital replacement project and
orized planners to begin develop-
tof schematic drawings.
e plan chosen, described by ar-
ects as a "modified pavilion"
gn, calls for six separate but in-
ated structures to house the essen-
iospital units.
WE PAVILION design (desigiated
3lock Plan "C") was chosen over,
other plans presented to the Board.
ock Plan C "really responds to all
criteria." architect John Haro of
the Detroit-based Albert Kahn Associ-
ates told the Regents.
The design calls for an inpatient care
unit, a diagnostic and treatment unit,
an ambulatory care unit, an education
and administration unit, and two
parking structures.
HARO CITED THE plan's flexibility
and relative economy as its major ad-
vantages. The pavilion is more flexible
than other designs in both construction
and -usage, Haro said, because the
various units can be adapted as con-
struction proceeds and as the health
field changes over the years.
The pavilion design is more
economical than the others because it
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can easily be built in separate phases,
utilizing ~many different contractors,
and following several separate sets of
building codes, Haro explained.
One consultant told the Regents the
cost for the very complex construction
required in some of the medical units is
more than double the cost for the office-
type construction that would be used in
other units.
THE TWO DESIGNS not chosen by
the Regents both called for a single
"monolithic" building to house most or
all of the hospital's essential units.
The Regents also discussed a con-
struction method known as "fast-
tracking" that would allow construc-
tion on some units to begin before all of
the working drawings for other units.
are completed. -
Consultants have said if fast-tracking
is used, construction could begin as
early as 1982 and be completed as early
as 1985.
SEVERAL MEMBERS of*the Board
expressed concern over the dangers in-
volved in commiting University funds
before full plans are finished and before
the exact amount of the state's ap-
propriation for the replacement
hospital project is known.
"There is no way on earth that any of
us are going to expose (the University)
to a high degree of risk," said Regent
Deane Baker (R-Ann Arbor).
But Regent Thomas Roach (D-
Saline) later said, "Everything we (the
Regents) do is a risk. If we started
playing the 'what if' game . . . we'd
never get anything done. I think this
Board is absolutely committed to get-
ting this hospital built."
Regent Robert Nederlander (D-
Birmingham) said he wantead to set
down a list of priorities right away, so
that' if program cutbacks are later
necessary, there will be no indecision
on which programs to cut.
University President Harold Shapiro
assured Nederlander that work on just
such a priority list was underway.
Shapiro informed the Regents that
Governor William Milliken informally
agreed that the state would fund up to
79 per cent of the project, with a ceiling
of $200 million on the state's portion of
the project cost.
An additional $35 million to $50
million is expected from hospital
revenues, and $20 million more is ex-
pected in gifts, Shapiro said. That puts
a tentative limit of $255 million to $270
million on the project.
The remaining steps in the hospital
replacement program are: preparation
of schematics (expected to take ten
months and cost $5 million); final state
approval of the program; preparation
of working drawings; acceptance of
bids and awarding of contracts; and
construction itself.
Daily Photo by PAUL ENGSTROM
THIS SCALE MODEL of the medical campus, as seen from the north, was presented to the Regents last April. The road l
the foreground will be constructed to allow better access to the new hospital that will be built on the north side. The old
main hospital, which can be seen in the upper right corner, will eventually be demolished.
'U'n may create health
plan for county reiet
By MITCH STUART
University officials are currently
contemplating a plan to institute a
University-sponsored health main-
tenance organization in Washtenaw
County.
A health maintenance organization,
or "HMO," is an alternative to major
medical plans offered by insurance
companies like Blue Cross/Blue Shield.
The HMO provides both health insuran-
ce and health care for its paying mem-
bers.
IN A REPORT submitted to the
Regents at their June meeting, an HMO
study committee recommended the
establishment of a county-wide HMO
sponsored by the University.
"The Study Committee has concluded
that the best way for the University t
provide HMO benefits to its stag
through a University-sponsored HMO is
through an HMO open to all the people
in Washtenaw County and several ad-
jacent communities," the report stated.
The HMO report sparked heated
debate at the Regents meeting over the
University's role in the Washtenaw
community.
Regent Deane Baker was furious that
the University had lobbied to change a
state law to make establishing an HMO
easier.
University officials assured the AM
Arbor Democrat that they had been ac-
ting in the University's best interest,
*but Baker said he was "deeply offen-
ded" that the administration had lob-
bied on the state level without approval
from the Regents.
Baker- said the University was con-
sidering a "fundamental change" in its
role as an educational institution by
contemplating an HMO for all.,
Washtenaw County.
University administrators explained
to Baker they were trying to economize
on health insurance for University em-
ployees, and for that reason were ex-
ploring the possibility of an HMO;
The study committee recommended
to the Regents that the University
establish an HMO rather than offer an
HMO option -to employees through
another institution or company.
"Many universities offer the H
option to their employees throu
existing community-wide HMOs, by
payment of all or part of the premium
required to these community-wide
HMOs," the report stated. "That option
is currently not available to the great
majority of University employees, on
the Ann Arbor campus, since no HMO is
functioning in Washtenaw County.
Establishment of an HMO that would
serve the entire community; as well as
University staff, would be recogniz4
as an important contribution to tlt
community by the University. It is,
however, entirely possible to wait until
one of the HMOs functioning in Wayne
County decides to expand service to
Washtenaw, or until an existing
Washtenaw County entity might for its
own reasons'organize an HMO. The
Study Committee feels there is more to
be gained for the University by moving
ahead than by waiting."
The Regents will consider moving
the planningphase for an HMO at the
September meeting.
.Let's play!
Doily Photo by
CYRENA CHANG
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