Telephone Conference Call Meeting of the Executive Committee,
Board of Trustees, University of Kentucky, Friday, June 30, 1978


    At 10:45 a.m. (EDT) on Friday, June 30, 1978, a telephone con-
ference call was held with members of the Executive Committee of the
Board of Trustees for the purpose of approving the General Fund Operat-
ing Budget for the College of Medicine for 1978-79 and approving "in
principle" a draft copy of a contract between the University of Kentucky
Board of Trustees and the Kentucky Medical Services Foundation, Inc.
The following members answered the roll call: Mr. William B. Sturgill,
Chairman, Mr. Albert G. Clay, Mr. William R. Black, and Mr. George W.
Griffin. Professor Sears, ex officio secretary, participated in the
call as did Vice Presidents Clapp and Bosomworth, and Mr. John Darsie,
Legal Counsel.

     In the absence of President Singletary, Vice President Clapp ex-
plained that the telephone conference call was necessary since it was
proposed that operation of the new "geographic full-time plan" begin at
midnight on June 30. Therefore, approval was needed prior to the final
approval at the July 7, 1978 called meeting of the Executive Committee.
Copies of the two documents had been received by all members of the
Executive Committee, with the exception of Mr. Black, prior to the call.

     Dr. Clapp gave a detailed analysis of the changes in the proposed
budget for the College of Medicine resulting from the establishment of
the outside corporation known as the Kentucky Medical Services Founda-
tion, Inc. which was approved by the Board of Trustees at its meeting
on Tuesday, June 20, 1978. Several questions were raised and answered
by Dr. Clapp. Mr. Clay then moved that, based on the information pro-
vided by Dr. Clapp and his explanation of the changes, the General
Operating Fund Budget for the College of Medicine for 1978-79 be approved
subject to ratification at the July 7, 1978 special meeting of the
Executive Committee. The motion was seconded by Mr. Griffin and passed
without dissent. (See Attachment 1 at the end of the Minutes)

     Dr. Clapp prefaced his remarks about the contract by saying that
while there had been no fundamental disagreement with the approach in
the draft document, there may be certain language changes and techni-
cal changes which will be necessary prior to finalizing the contract
for approval on July 7, 1978. He emphasized that the contract had not
yet been approved by the Kentucky Medical Services Foundation, Inc. and
that it was possible, but not probable, that it might not be approved
as presented.

     Dr. Clapp read the changes which were proposed to be made in the
contract as shown in the attached copy. In answer to a question by
Mr. Clay, Dr. Clapp assured him that the contract is for one year only.
Mr. Sturgill asked if the University would continue to collect accounts
receivable for the University as under the old procedure. Dr. Clapp
replied that any services rendered prior to midnight, June 30, will