OSU Medical Authority Minutes

OSU Medical Authority and Trust

Thursday, August 27, 2026 1:00 PM CDT to 1:15 PM CDT
@ OSU Medical Center, 2nd Floor Executive Boardroom, 744 W. 9th St., Tulsa

Notice of the meeting was given in writing to the Oklahoma Secretary of State more than forty-eight (48) hours prior to the meeting, and the agenda of this meeting was posted at entrances of Oklahoma State University Center for Health Sciences and Oklahoma State University Medical Center twenty-four (24) hours prior to such meeting, excluding Saturdays, Sundays, and legal holidays, in compliance with the Oklahoma Open Meeting Act.

Attendance

Present: Michael Herndon, Brett Lessley, Barry Steichen, Johnny Stephens, Jay Helm, Aaron Morris
Absent: Tracy Poole
Guests: Eric Atkinson, Damon Baker, Deborah Dage, Mike Fields, Catherine Gann, Melissa Macarthur, Finny Mathew, Erica Woolf, Terri Tinkler, Leslie Stewart, Dennis Blankenship, Mo Som, Jessica Russell (remote), Karlee Belle Ghoulson, Steve Thompson, Jami Longacre (remote), Kathy Cook, Damon Baker

1. Call to order and establishment of a quorum
   • Presented By Jay Helm
   • The meeting was called to order by Jay Helm at 1:01 PM. After a roll call, Jay Helm declared that a quorum of the Oklahoma State University Medical Authority was present for the meeting.
2. Recognition of Aaron Morris filling the seat on the Authority statutorily assigned to the Chief Executive Officer of the Oklahoma Healthcare Authority
   • Presented By Jay Helm
   • Jay Helm welcomed Aaron Morris who is joining us as the new Interim Director of the Oklahoma Healthcare Authority and thanked him for joining the OSUMA board. He explained the background and purpose of OSUMA.
3. Discussion, consideration, and possible vote on the approval of minutes of the June 25, 2026, meeting - ACTION
   • Presented By Jay Helm
   • Motion:
   • Motion to approve the minutes of the June 25, 202, meeting.
   • Motion moved by Michael Herndon and motion seconded by Barry Steichen. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
4. CEO's Report
   • The CEO's report was reviewed, including a summary of revenues and disbursements through June 30, 2026, updates on three ARPA-funded projects, and pending meetings from the June meeting.
   • University Legal Counsel completed the draft property agreement, with a meeting scheduled for September 11 to address this item.
   • The state is contributing $8 million, matched for a total of $32 million, to support Saint Francis' trauma initiative. There is nearly $100 million allocated for related projects.
   • The three ARPA projects funded through OSUMA are at various stages, with ARPA spending expected to wind down this fall. The Advanced Care for Rural Oklahoma project is in the closeout period, with all invoices to be completed by October 1 and a final report to be submitted.
   • OSU Medical Center expansion and pharmaceutical research facilities expenses incurred through July 31 total $49,335,000. The August expense will exhaust the final $664,000 of ARPA funding, beginning the closeout of this funding source.
   • Some ARPA projects will not meet the December close deadline, despite efforts to complete them by September 30 or October 1. Legislative leaders are considering reallocating unspent funds, and Eric has prepared projections for potential additional funding.
   • The organization has received $50 million in ARPA funds and is requesting an additional $24-27 million, with up to $20 million expected to be spent before the December deadline.
   • With the July payment, ARPA funds will exceed $50 million, resulting in a $3 million draw on TSET funds. An agreement between OSU, OSUCHS, and the Medical Center is being prepared to ensure proper payment and reimbursement processes.
   • The legislature appropriated $6 million annually, allowing for bonding of the balance of the building. An additional $14 million was received, offsetting a $2 million reduction, with carryover funds from COVID-related conversions.
   • Drafts of cooperative agreements between OSUMA and OSU have been completed, revised, and approved by university legal counsel.
   • Eric Polak has joined the Commission on Accreditation of Osteopathic Medical Schools as a finance representative, which is beneficial for the organization.
   • There is $14.5 million for the Human Performance and Nutrition Research Institute (HPNRI) that must be spent by December. The funds flow through to OSU, and regular communication is maintained to ensure timely expenditure.
   • Eric Polak is tasked with maintaining daily communication with Stillwater to ensure HPNRI funds are spent before the deadline, and with regular meetings with ARPA representatives for long-range planning in Stillwater.
   • Jessica Russell clarified that some HPNRI funds were moved from ARPA money to ARPA interest money, providing more flexibility. The ARPA funds are expected to be spent by the deadline, with the remainder being ARPA interest without strict restrictions.
   • The state has a Legacy Capital Fund, holding $1.8 billion and earning interest, with over $5 billion available. Only 95% of expected income can be appropriated, providing adequate funding for projects not completed by the ARPA deadline.
   • The organization aims to maximize external funding to preserve its own capital, especially in preparation for potential support to rural hospitals, which receive 130% of Medicare and Medicaid rates.
   1. Financial Report
      • The financial report was confirmed as included in the CEO's report.
   2. Legislative Update
      • Presented By Jessica Russell
      • Jessica Russell provided a legislative update, noting that interim studies are underway, with a focus on access to care, care delivery models, emergency medical services, workforce training, and the impact of AI on personal data. These studies must be completed by late October or early November.
      • She committed to keeping the board informed of any relevant findings from the interim studies over the coming months.
      • She summarized recent election outcomes, including six Senate races and nine House races, with the Freedom Caucus losing two Senate seats, which may affect Senate leadership dynamics. Some seats still have general elections in November.
5. Discussion, consideration, and possible vote to elect officers of the Authority for fiscal year 2027 - ACTION
   • Presented by Jay Helm
   • Motion:
   • Motion to nominate Jay Helm as chair, Mike Herndon as vice chair and secretary, and Brett Leslie as treasurer.
   • Motion moved by Johnny Stephens and motion seconded by Barry Steichen. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
6. Discussion, consideration, and possible vote to approve the release of Restricted Net Assets - ACTION
   • Presenter: Eric Atkinson
   • The board discussed the release of restricted net assets, specifically funds previously held in reserve for strategic capital initiatives related to the C-section build out. $151,000 remains for the FY26 balance, with additional strategic capital funds intended for FY26 to be spent in FY27.
   • Motion:
   • Motion to approve the release of restricted net assets.
   • Motion moved by Johnny Stephens and motion seconded by Brett Lessley. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
7. Announcements
   • Presented By Jay Helm
   • Next regularly scheduled meeting of the Authority is October 22, 2026, at the OSUMC 744 W. 9th St., Tulsa
     
8. Motion and Vote for Adjournment
   
   • Presented By Jay Helm
     
   • Motion:
     
   • Motion to adjourn the meeting at 1:27 PM.
     
   • Motion moved by Barry Steichen and motion seconded by Johnny Stephen. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
     

Minutes signed off by Oklahoma State University Medical Authority Secretary, Michael Herndon.

If you would like a copy of these minutes, please reach out to Terri Tinkler at osuma@okstate.edu.