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       U.    Patent Assignment (FOR 4)

       Mr. Chellgren said that FCR 4 relates to an invention by a relatively
new Assistant Professor, Todd Smith. This invention relates to the medical
field, and more particularly to an apparatus and method for the reliable,
time-released delivery of a selected medical preparation. This is
considered to have potential commercial applications. He moved that the
Board authorize the President to execute an assignment on behalf of the
Board to the University of Kentucky Research Foundation the following
Letters Patent of the United States and the invention represented thereby:
Todd T. Smith, Serial No. (to be assigned), filed October 28, 1994. His
motion, seconded by Mr. Shoop, carried. (See FCR 4 at the end of the
Minutes.)

       V.    Sewer Easement to City of Owensboro to Benefit Daviess County
Board of Education (FOR 5)

       Mr. Chellgren said that FCR 5 recommends that the President or his
designee be authorized to execute a permanent easement across the Owensboro
Community College campus for sewer facilities to be constructed and
maintained by the City of Owensboro, Kentucky. He explained that the sewer
easement is to accommodate lines running to a new middle school currently
under construction by the Daviess County Board of Education on New Hartford
Road across from the Community College's main entrance. He noted that this
will also improve the sanitary sewer service to the Owensboro Community
College. On motion made by Mr. Chellgren, seconded by Mrs. Weinberg and
passed, FCR 5 was approved. (See FCR 5 at the end of the Minutes.)

       W.    A Resolution Authorizing the jniversitv's Participation in the
Formation of an Integrated Delivery System and its Associated Corporate
Bodiesz Including a Provider Network and a Service Corporation which will
Ownand Control a Managed Care Organization, such as an HMO and Other
Related Businesses (FOR 6)

       Mr. Chellgren said that this item is complex. It requires a
commitment by the University of up to $6,000,000. He asked Chancellor
Holsinger to discuss the implications of FCR 6.

       Chancellor Holsinger said that FCR 6 is a resolution that authorizes
the University's participation in the formation of an integrated health care
delivery system and its associate corporate bodies. This includes a
provider network and a service corporation which will own and control a
managed care organization such as a health maintenance organization and
other related businesses. In April of this year House Bill 250 passed the
legislature of the Commonwealth and the state entered into an era of health
care reform. The result of that has been for the Medical Center to look to
the future to see how we might most effectively enter into the provision of
health care services to the citizens of the Commonwealth particularly in
eastern and central Kentucky. Utilizing Commonwealth Health Care Alliance,
which has been in place for several years now, is a way to do that. He
explained that a number of hospitals and physicians across eastern and
central Kentucky have come together to develop a provider network that will
be in place and able to bid on a variety of contract possibilities either
with the state or with businesses, corporations, or other groups of
individuals who