MINUTES OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF TRUSTEES
OF THE TRUSTEES OF PURDUE UNIVERSITY
September 20, 1996
The Executive Committee of the Board of Trustees of The Trustees of Purdue University (Messrs. Jesse, McGinley and Townsend) convened at 11:07 a.m. on Friday, September 20, 1996 in the Director's Dining Room of the Memorial Union Building, pursuant to call of Committee Chairman Jesse and to prior notice by mail from Frederick R. Ford, Treasurer of the Corporation. Public notice of the date, time and place of the meeting as reqpiired by law was given by Mrs. Doris Pearson, Secretary of the Corporation. Also present were President Beering, Treasurer Ford, Vice President and Assistant Treasurer Burns, John Beelke, Assistant Director, Staff Benefits, and Secretary Pearson.
I.  APPROVAL OF 1997 PURDUE MEDICAL BENEFITS PROGRAM.
Vice President and Assistant Treasurer Burns reported that 1996 has been another very successful year for the medical insurance program which has experienced a decline in expenditures. He referred to the Medical Claims and Utilization Data provided each Trustee which indicated that utilization is down. He noted this has a great deal to do with the competitive nature of what is occurring in the community. The latest data for 1995 show average hospital length of stay nationwide at 5.1 compared to our length of stay which is hovering around 3.6--3.7. The decline in utilization, decline in bed days, and the decline in average length of stay is having its positive impact.
Mr. Burns infoxTiied the Executive Committee that the following plan changes for 1997 which have been endorsed by the Purdue Health Plan Advisory Committee will continue this favorable cost environment.
1. New 3-year agreements have been negotiated with the two Lafayette hospitals which will help to stabilize further the costs of hospital services. To achieve greater discounts, each hospital will have local exclusivity for certain services: Lafayette Home Hospital will be the local hospital provider for the workers' compensation program and for the new graduate student employee health plan; St. Elizabeth Medical Center will be the local