LAWRENCE MEMORIAL HOSPITAL

BOARD OF TRUSTEE MEETING MINUTES

January 18, 2006

9:00 am

Present: Donna Osness Gene Meyer Janice Early-Weas

Lindy Eakin Simon Scholtz Chris Penn, MD

Verdell Taylor Deborah Thompson Andy Ramirez

Mark Praeger, MD Karen Shumate

Sheryl Jacobs Dana Hale

Judy Keller Jeff Novorr

Allen Belot Jane Maskus

Chuck Heath Kathy Clausing

Absent: Joe Flannery (excused)

Others present: Carolyn Coleman, League of Women Voters Rep; Joan Shearer, Admin. Lawrence Surgery Center

Call to Order

The meeting was called to order by Donna Osness, Chairperson

Approval of Agenda

The agenda was presented for review.

MOTION: made by Chuck Heath, seconded by

Sheryl Jacobs to approve the agenda as presented.

Motion carried.

Executive Session

MOTION: made by Chuck Heath, seconded by

Judy Keller that the Board of Trustees recess to

Executive Session for consultation with hospital

attorney which would be deemed privileged in the

attorney-client relationship, to include the CEO,

CFO, VP/Clinical Services and Chief of Staff.

The open meeting to resume in this room

at 9:40 a.m. Motion carried.

MOTION: made by Chuck Health, seconded by

Judy Keller to extend the meeting to 9:55 a.m.

Motion carried.

MOTION: made and seconded to leave executive

session. Motion carried.

The open meeting resumed at 10:00 a.m.

Board of Trustee Meeting Minutes

January 18, 2006

Page two

Consent Agenda

Approval of minutes for December 21, 2005 Board of Trustee meeting.

MOTION: made by Sheryl Jacobs, seconded by

Lindy Eakin to approve the Consent Agenda.

Motion carried.

Finance Committee report

a. Board Resolution:

RESOLUTION OF THE BOARD OF TRUSTEES OF THE

LAWRENCE MEMORIAL HOSPITAL DETERMINING

ITS INTENT TO REIMBURSE ITSELF FOR CERTAIN

CAPITAL EXPENDITURES

WHEREAS, The Lawrence Memorial Hospital (the “Borrower”) has made certain capital expenditures in connection with its facilities under its master facilities plan, including the demolition of the “’69 Wing,” the construction and equipping of a 3-story patient tower, the acquisition and installation of a 64-slice CT scanner, and related facilities and property, and various capital expenditures specified in the capital budgets for the years 2005 and 2006 as previously approved by the Board of Trustees (collectively, the “Project”), prior to the date of this Resolution, and the Borrower expects to make additional capital expenditures for the Project in the future.

RESOLVED, that the Borrower intends to reimburse itself for all or a portion of such expenditures, to the extent permitted by law, with the proceeds of bonds or other obligations to be issued by a political subdivision or other governmental entity for the benefit of the Borrower (the “Bonds”).

FURTHER RESOLVED, that the maximum principal amount of Bonds expected to be issued for the Project is $35,000,000.

* * * * *

Lindy Eakin reviewed the need for the resolution allowing LMH flexibility to reimburse itself from Bond Proceeds for certain capital expenditures made in advance of a bond issue.

MOTION: made by Sheryl Jacobs, seconded by

Judy Keller to approve the resolution. Motion

carried.

Facilities Committee Report

Judy Keller reported that the Facilities Committee met with the three architect finalists and a decision has not been made as of this date on the proposals.

CEO Comments

A copy of an on-line quality report was provided.
A copy of an article that was in the paper regarding the Eudora property was provided.
A letter was read from Mayor Highberger congratulating LMH on the heart program.
Hospitalist program doing well. The program is almost standing on its own and LMH is recruiting for a 4^th Hospitalist.
Imaging activities at LMH West which opened December 10 has done 249 exams during December. A CT scanner and Ultrasound equipment are to be installed by February.

Board of Trustee Meeting Minutes

January 18, 2005

Page three

Old Business
a) Interventional Cardiology Program – Dana Hale reported on the statistics for the

Cath Lab. The first month 39 procedures were performed; last month 64 procedures. The

challenge now is space. A report on the breakdown of procedures was provided to

the Board.

b) 2005 Management Plan Recap “These Things Must Happen in 2005” - Gene Meyer provided a report to the Board with replies from all executive staff members as to their areas of responsibility. Next month a plan for 2006 will be provided.

c) Eudora Property Update – Gene Meyer reported that a proposal had been received from Land Plan Engineering for the Eudora project. More information will be provided as we progress.

New Business

a) GI Coverage – Gene Meyer reported that LMH has three gastroenterologists on staff and needs five. The Medical Executive Committee is going over coverage with the three physicians.

b) 2005 Lawrence Surgery Center Review – Joan Shearer, Administrator, Lawrence Surgery Center, provided information on the operations of the facility and statistical data for the Board’s information.

Announcements

a) The LMH Endowment Annual Meeting is January 25 at the Eldridge from 4:30 pm to 6:30 pm.

Adjournment

MOTION: made by Chuck Heath, seconded by

Judy Keller to adjourn the meeting. Motion carried.

Respectfully submitted,

Verdell Taylor,

Secretary