LAWRENCE MEMORIAL HOSPITAL
BOARD OF TRUSTEES
April 18, 2007
Present: Lindy Eakin Gene Meyer Janice Early-Weas
Donna Osness Simon Scholtz Chris Penn, MD
Joe Flannery Deborah Thompson Andy Ramirez
Verdell Taylor Dana Hale
Mark Praeger, MD Karen Shumate
Sheryl Jacobs Jeff Novorr
Judy Keller Sheryle D’Amico
Allen Belot Jane Maskus
Chuck Heath Kathy Clausing
Others present: Mark Fagan, Journal-World Reporter, Ted Hempy, BKD, Kelly Hilmes, Accounting, Carolyn Coleman, League of Women Voters Representative, Tom Damewood, Environmental Services and Skanda, Plant Services.
Call to Order
The meeting was called to order by Lindy Eakin, Chairperson.
Approval of Agenda
The agenda was presented for approval.
MOTION: made by Chuck Heath, seconded by
Mark Praeger to approve the agenda as submitted.
Motion carried.
Consent Agenda
a) Approval of minutes for March 21, 2007 Board of Trustee meeting
b) Finance Committee report - March, 2007 Financials
c) Planning Committee report
d) Annual Evaluation of the Environment of Care Program
MOTION: made by Sheryl Jacobs, seconded by
Joe Flannery to approve the Consent Agenda.
Motion carried.
Board of Trustee Meeting Minutes
April 18, 2007
Page two
BKD Audit Report
Ted Hempy with BKD, reviewed the 2006 audit for the Board. This was presented to the Finance Committee earlier. Mr. Hempy reviewed the key comments in the auditor’s opinion and overall it was a “clean” opinion. The 2006 audit reflects the most successful year for LMH. The financials for 2006 reports nearly $10.3 million in operating income, compared to $7.4 million in 2005. These revenues over expenses are reinvested to finance future facility improvements, purchase new equipment and provide additional services. LMH experienced a 60 percent increase in the amount of charity care provided last year. The hospital wrote off $6.1 million in charity care compared to $3.8 million in 2005. Mr. Hempy complimented the accounting staff for having all of the information ready.
MOTION: made by Joe Flannery, seconded by
Allen Belot to approve the audit. Motion carried.
Facilities Committee Report
Judy Keller reported that the building project is on track. The contractors are now sharing their own contingency reports and are comfortable with the timeframes set. The Facilities Committee asked how many Douglas County contractors were being used on the project and it was reported that for materials and labor, approximately 62.4% of the work is being done by local contractors.
The Facilities Committee reviewed information on two homes on Michigan for sale and recommended that the homes be purchased within appraisal prices.
MOTION: made by Judy Keller, seconded by
Sheryl Jacobs to authorize administration to
proceed with the purchase of the two homes.
Motion carried.
Medical Executive Committee Recommendations
Dr. Penn reviewed the recommendations:
Appointment
effective 04/18/07 through 06/30/08 with Internal Medicine privileges as
requested.
There will be a provisional period during this initial period of appointment.
MOTION: made by Donna Osness, seconded by
Sheryl Jacobs to approve the Medical Executive
Committee recommendations. Motion carried.
Board of Trustee Meeting Minutes
April 18, 2007
Page three
CEO Comments
Old Business
a) Eudora Site Update – Andy Ramirez reported that LandPlan is working on a preliminary plat drawing to include visibility as to what the building would look like on site. The tenants on site now will be vacating the property at the end of April and removal of the buildings will be completed in May.
b) PHO Update – Simon Scholtz reported that LMH has had 21 physicians sign agreements and still need hospital based physicians to sign.
c) Regional Strategic Issues - Sheryle D’Amico reported on regional issues:
a. In Jefferson County – the ARNP at the McLouth Medical Center was looking to collaborate with a physician for the clinic and is working with Dr. Yockey.
b. In Oskaloosa, Cotton-O’Neil is building a new office building to be open in June with mammography & radiology services.
c. Meetings have been held in Ottawa with six Family Practice physicians and encouraging the use of Lawrence Memorial services. Gene Meyer met with the CEO at Ransom regarding LMH’s presence.
d. The Wound Healing Center has been presenting information in the surrounding areas as to services provided.
e. The Overbrook Clinic has been sold to Cotton-O’Neil as a majority of the patients had ties to Topeka.
d) Board Work Session Follow-up – Lindy Eakin reported that the time was spent on discussion of physician recruitment and the medical office building needs.
e) LMH New Medical Office Building – Gene Meyer reported on the scarcity of medical office space on our campus and the plans to purchase The Reed Group building. This purchase would be contingent upon their signing a 10-year lease on a new medical office building built on our campus. The MOB will be a 3-story building with plans to house the I.T. Department on the lower level and The Reed Group on the 2nd level. The 3rd level will be space for future physician office use. The use of the Reed Group building options is still being studied. Time wise on construction, the contractors are now here and would like to proceed on the MOB. It should be noted that the MOB project will be financed with LMH reserve funds and is separate from the other additions to the hospital that are in part funded by the capital campaign. Gene Meyer called the owners of the medical offices at 6th & Maine and 4th & Maine regarding our MOB plans and both understood. the rationale.
Board of Trustee Meeting Minutes
April 18, 2007
Page four
MOTION: made by Mark Praeger, seconded by
Chuck Heath to approve proceeding with the
construction of the Medical Office Building.
Motion carried.
New Business
a) 2007 VHA Leadership Award for Clinical Excellence – Gene Meyer announced that LMH received this award two years ago and again this year LMH will receive this award. The award is due to the great medical staff at LMH and they were thanked for their support.
Announcements
The Annual Report to the Community Reception will be Thursday, May 24 with refreshments in the Atrium, at 4:30 p.m. and the program in the Auditorium at 5:15 p.m.
Executive Session
MOTION: made by Chuck Heath, seconded by Dr. Praeger
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 and Chief of Staff. The open meeting to resume
in this room at 10:30 a.m. Motion carried.
MOTION: made by Chuck Heath, seconded by Joe Flannery
to extend the executive session to 10:45 a.m. Motion carried.
MOTION: made by Chuck Heath, seconded by Allen Belot to
come out of executive session. Motion carried.
Open meeting convened.
Adjourn
There being no further business to discuss, the meeting adjourned.
Respectfully submitted,
Verdell Taylor
Secretary