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might seek to obtain their professional services for the care of clinical
needs by these individuals. As a result of that, two vice chancellors,
Frank Butler and Dean Emery Wilson of the College of Medicine and their
staff put together the corporate structure that will allow us to go forward
into the future in a way that will help to maintain the sound fiscal
viability of our clinical enterprise. He said that it is important to
remember that everything we do in the way of our clinical enterprise is done
in an effort to have the appropriate education for the students in the next
generation of health care clinicians and to have a place where they can
undergo the appropriate high quality education that is required for them to
go into their particular type of practice in the future. This venture will
provide that opportunity. It requires us to be authorized by the Board to
enter into the corporation and to be a part of the funding of that
corporation. The University would be allowed to invest up to $6 million of
University Hospital funds which will be used along with funds from other
qualified hospitals, physicians and health care providers to provide
capitalization for this enterprise.

       President Wethington recognized Mr. Frank Butler, Director of the
University Hospital, and praised him for his outstanding performance. Mr.
Butler was given a round of applause.

       Mr. Chellgren moved approval of FCR 6. His motion, seconded by Mr.
Wilcoxson, carried. (See FCR 6 at the end of the Minutes.)

       X.    Amendment to Agreement Between University and Kentucky Medical
ServiQes Foundation  FCR 7)

       Mr. Chellgren said the purpose of FCR 7 is to authorize the President
of the University to execute an amendment to the agreement between the
University and the Kentucky Medical. Services Foundation. He asked Mr.
Lawson comment on FCR 7.

       Mr. Lawson said that FCR 7 is to make two minor changes in the
agreement between the University of Kentucky and the Kentucky Medical
Services Foundation. (The Kentucky Medical Services Foundation administers
the income that is generated from professional services under our medical.
services plan.) The first minor change would allow KMSF to obtain property
for use as additional practice sites for teaching, research, and patient
care. a need that grows out of the health care reform described by
Chancellor Holsinger in the discussion of FCR 6. The second change would
provide that the payment of costs for obtaining these additional sites would
be charged to clinical income. He added that ownership of any real property
acquired pursuant to these new provisions of the agreement would be owned by
and held in the name of the Foundation. He noted, however, that the KMSF
Articles of Incorporation provide that if the Foundation ever dissolves, all
of its assets would revert to the University; thus, property obtained as
practice sites under these changes to the agreement would pass to the
University should the Foundation ever cease to exist.

       On motion made by Mr. Cheligren, seconded by Mr. Crosbie and carried,
FCR 7 was approved.