12.03


Establishing a Service Department A


POLICY OVERVIEW

The University of Texas Health Science Center at Houston (UTHSC-H) establishes a service center when new services are required that are not being provided internally, and when the required level of services cannot be obtained at a lower cost from an external vendor.

Auxiliary enterprises and service departments that charge fees and are oriented toward internal and external clientsmay be established when the anticipated annual revenue exceeds $10,000.

In addition, these proposed entities must meet the following criteria:

The rate structure must be based on service center operating expenses. Once the requester is satisfied that the proposed entity meets these criteria, she or he must prepare a feasibility study and business plan and have it approved by the Chief Fianancial Officer or his or her delegate, the Associate Vice President for Finance.

PROCEDURE

Departments or individuals interested in establishing a service provider that charges fees for services should determine whether they have met the criteria listed above. If the establishment of a service provider appears to meet the criteria of the UTHSC-H for a service provider that charges fees, the individuals or department should contact the Associate Vice President for Finance, who assists in and directs a feasibility study of the proposed service and submits the request and the documentation of funding to the Chief Financial Officer for approval.

Updated 08/05