This report reviews the 1998 activities of the Midwestern Higher Education Commission (MHEC), a compact of nine member states. MHEC offers its members various cost-saving services, provides a forum for sharing information on higher education issues, and offers savings to some out-of-state students through a student exchange program. Focusing on Illinois' role within the commission, the report notes that Illinois colleges and universities have used MHEC cost-saving programs such as regional self-insurance risk management and the natural gas and utilities initiative very sparingly. The report notes that while one of the most popular MHEC programs has been the interactive video program, most purchases made through MHEC were made in the early years of the program. The report concludes that while Illinois state colleges and universities probably will not benefit substantially from most MHEC initiatives due to the economies of scale already present in the state system, some small or private institutions might find it advantageous to make purchases through MHEC. It also notes that one of the main benefits of MHEC membership is its role in organizing regional meetings to consider the problems facing higher education. Two appendixes outline the 1998-1999 MHEC budget and provide a list of Illinois members. (MDM)