LAWRENCE MEMORIAL HOSPITAL

BOARD OF TRUSTEE MEETING MINUTES

October 15, 2008

Present:          Joe Flannery              Gene Meyer               Kathy Clausing

                        Donna Osness            Simon Scholtz Janice Early-Weas

                        Chuck Heath              Dana Hale                  Mike Thompson, MD

                        Verdell Taylor            Karen Shumate          Andy Ramirez

                        Sheryl Jacobs             Jeff Novorr

                        Judy Keller                 Sheryle D’Amico

                        Allen Belot                 Sherri Vaughn, MD

                        Dan Lambert              Jane Maskus

Others present:  Karrey Britt, Journal-World reporter and David Corliss, City Manager

Call to Order

The meeting was called to order by Joe Flannery, Chairperson.

Approval of Agenda

The agenda was presented for review.

            MOTION: made by Sheryl Jacobs, seconded by

            Chuck Heath to approve the agenda as written.

            Motion carried.

Consent Agenda

a)  Approval of September 17, 2008 Board of Trustee minutes.

b) Planning Committee minutes.

c) Community Relations Committee minutes

MOTION: made by Dan Lambert, seconded by

Sheryl Jacobs to approve the Consent Agenda.

Motion carried.

City Proposed Sales Tax

David Corliss, City Manager, spoke to the sales tax proposals for public transportation, streets and infrastructure, why the sales taxes are needed and how much the tax will generate.  A brochure was distributed for information.

Finance Committee – September, 2008 Financials

Chuck Heath reviewed the financials showing LMH has had a solid year.  The hospital’s investments were reviewed and feel good with where LMH is and in good shape so far.    Sixty-six million for a hospital the size of LMH, as a standard reserve, is needed to maintain our credit rating.  Jim Beasley, investment consultant, will attend the November Finance Committee meeting to discuss the current environment and plans for November’s semi-annual investment activity.

Board of Trustee Meeting Minutes

October 15, 2008

Page two

Kathy Clausing reported on the LMH Endowment capital campaign pledges.  There is $2.5 million out for collection and all are continuing to pay.

            MOTION: made by Judy Keller, seconded by

            Sheryl Jacobs to approve the September, 2008

            financials.   Motion carried.

Facilities Committee Report

Allen Belot reported on the Facilities Committee meeting held September 30 with the following update on the expansion project:

a) Mother/Baby Unit is complete

b) The face brick for the surgical area is almost complete.  The rooms are currently being studded and work has been done to minimize the variance on the floor slab.

c) The air handlers are set in the penthouse.

d) The contingency fund is at $295,000 and there shouldn’t be many surprises so we are in good with completion on schedule.

e) Medical Office Building has had a slight delay on some work due to city changes from the universal building code to the national building code which caused resubmission of some of our drawings.  It is projected to be done in August, 2009 with tenant finishes shortly thereafter.

f) Eudora project – Facilities Committee will be interviewing architects soon.

g) Michigan Street Acreage - Standards could affect the development of this property as a park and that is being investigated.

Medical Executive Committee Recommendations

Dr. Thompson reviewed the following recommendations for approval:

APPOINTMENTS, PRIVILEGE or STATUS CHANGES:

Dale Denning, M.D. – (Active; Surgery Department) Leave of Absence 8/22/08-10/10/08

Richard May, M.D. – (Active; Family Practice Department) Addition of Esophageal Dilation (Balloon) was approved with direct observation of the first three procedures.

Michael Well, M.D. – (Active; Surgery Department) Reappointment through 6/30/2010.

            MOTION: made and seconded to approve the

            Medical Executive Committee’s recommendations.

            Motion carried.

Board of Trustee Meeting Minutes

October 15, 2008

Page three

Physician Credentialing Audit

Sherri Vaughn, MD, reviewed the results of a physician credentialing audit showing the amount of time from when the application is received to board approval.  The average time for medical staff privileges is about 75 days.  The Credentials Committee feels that this is an appropriate length of time for adequate and thorough evaluation.  This report will be done once a year and the Board was interested in how LMH stands with other hospitals our size, if the information is available.

CEO Comments

Gene Meyer reported on the following:

a) It is a difficult year for predicting activity due to the economy.  LMH is shooting for a 4% operating margin in 2009. 

b) Reported on AHA meeting in Kansas City regarding Healthcare – a Framework for Change.  This is a study group working proactively towards healthcare.  Mr. Meyer will continue to be in the group dialogue.

Old Business

a) Physician Recruitment – Dr. Vaughn reported on the following:

a. Dr. Evans will be joining Mt. Oread practice two days a week.

b. A new physician for LOGS is being recruited and close to signing.

c. Recruitment for the Eudora practice is still ongoing.

d. There are two physicians interested in the Tonganoxie practice.

e. IMG is meeting with a gastroenterologist on October 23.

b) Strategic Planning Update – Jeff Novorr called attention to the update on the strategic pillars and strategic objectives (3-5 year outlook).  He is working with the Camden Group to get a feel for outmigration and if there is a need to shift our strategies to these service lines.

c) Remote Hosting Contract – Jane Maskus reported that the agreement has been signed with a $1.4 M savings over 5 years.

d) Eudora Site Development – Andy Ramirez had nothing new to report.  The decision for providing water service – City of Eudora or Water District -- has not been determined.   The trial is set for January.

New Business

a) Board Officers and Committee Assignments

Board Officers for 2009

Chairperson                            Joe Flannery

Vice Chairperson                   Judy Keller

Treasurer                               Chuck Heath

Secretary                                Verdell Taylor

Board of Trustee Meeting Minutes

October 15, 2008

Page four

Committee Assignments for 2009 (attached and made a part of these minutes)

MOTION:  made by Donna Osness, seconded by

Chuck Heath to approve the Board Officers and

Committee Assignments for 2009.  Motion carried.

Executive Session

            MOTION: made by Chuck Heath, seconded by

            Donna Osness 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 Medical Staff Affairs and Chief of Staff.   The                                                        open meeting to resume in this room at 11:00 a.m.                                         Motion carried.

MOTION:  It was moved and seconded to leave Executive                                                           Session.   Motion carried.

Open meeting convened at 11:05.  

Adjournment  

There being no further business, the meeting adjourned.

                                                                                    Respectfully submitted,

                                                                                    Verdell Taylor

                                                                                    Secretary

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