OSU Medical Authority Minutes

OSU Medical Authority and Trust

Thursday, June 25, 2026 1:00 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:
Members: Clay Bullard, Michael Herndon, Brett Lessley (remote), Tracy Poole, Barry Steichen, Johnny Stephens
Guests: Eric Atkinson, Damon Baker, Rick Brewster (remote), Kathy Cook, Deborah Dage, Mike Fields, Courtney Finocchiaro, Catherine Gann, Melissa Macarthur, Finny Mathew, Eric Polak, Erica Woolf
Absent:
Members: Jay Helm

1. Call to order and establishment of a quorum (Presenters: Mike Herndon)
   • The meeting was called to order by Michael Herndon, who is standing in for Chairman Jay Helm, at 1:45 PM. After a roll call, Michael Herndon declared that a quorum of the Oklahoma State University Medical Authority was present for the meeting.
2. Discussion, Consideration, and Possible Vote on the Approval of Minutes of the March 26, 2026, Meeting (Presenters: Mike Herndon)
   • File Name: Draft-OSU Medical Authority Minutes 3.26.2026.pdf
   • Motion:
   • Motion to approve the minutes of the March 26, 2026, meeting.
   • Motion moved by Tracy Poole and motion seconded by Michael Herndon. Aye: Herndon, Stephens, Bullard, Steichen, Poole Nay: None Abstain: None
3. CEO’s Report
   1. Financial Report (Presenters: Eric Polak)
      • File Name: OSUMA SRD 5.31.2026.pdf
      • Eric Polak went over the YTD summary of revenue and expenses. Highlights included:
        • The $14 million
        • The Tulsa Health Department Behavioral Workforce grant is complete.
        • OMES variances
4. Discussion, Consideration and Possible Vote to Authorize Payment to the OSU Medical Trust of Legacy Capital Fund Proceeds in the Amount of $8,018,291.96 (Presenters: Eric Polak)
   • These funds will be restricted for use by the OSU Medical Trust for the specific purchases of equipment detailed in the attached documents. Payment is being made at this time to allow for the securement of purchase orders, payment of deposits and ultimate purchase of the specified items and services.
   • File Name: LCF Req #002_4-30-26.pdf
   • File Name: LCF Req #001_4-30-26_revised.pdf
   • Eric Polak explained the Medical Authority was awarded $30 million in legacy capital funds for the expansion project. The way we access those is we either have to get reimbursed for actual expenses, or we have to show actual expenses that we need to get funding advanced on. Management pulled together purchase order information for the expansion project, largely around the surgical equipment and design services that are needed with Stryker and some of the others. The attachments are what was filed with the Oklahoma Capital Improvement Authority to get that drawdown. The $8 million is sitting in the OSU Medical Authority account. What is being requested is the authority to transfer that to the Trust, because that's’where the expenses will come from ultimately, but also carry it with the fact that those funds are restricted for this purpose only to comply with the requirements of OCIA.
   • Motion:
   • Motion to authorize payment to the OSU Medical Trust of Legacy Capital Fund proceeds in the amount of $8,018,291.96.
   • Motion moved by Johnny Stephens and motion seconded by Barry Steichen. Aye: Herndon, Stephens, Bullard, Steichen, Poole Nay: None Abstain: None
5. Discussion, Consideration and Possible Vote to Approve the FY 2027 Budget for Appropriated Funds (Presenters: Eric Polak)
   • File Name: OSUMA FY 2027 Appropriated Budget.pdf
   • File Name: FY 2027 General Appropriations Bill.pdf
   • Eric Polak discussed nuances and adjustments of appropriated funds from prior year.
     1. There was a reduction in total appropriated funds of $2 million. However, $1 million of that $2 million is made up by what was one time funds. They have historically appropriated $1 million every other year into the behavioral health workforce and residency development fund, so this was our year not to get an appropriation into that fund.
     2. In prior year, legislature created a fund specifically for the Emergency Medicine Level 1 Trauma Revolving Fund. When they appropriated that $8 million for it in this year for us to make that state match, they did not appropriate it in the fund that they created for that purpose. They built it into the regular appropriation. You will see nothing in the Level One Trauma fund, but $8 million that is in our 197 fund is intended for that purpose.
     3. We are holding just about $6.1 million in the budget right now for if that Medicaid, managed Medicaid IME SPA gets approved that Eric Atkinson talked about during the budget. If that SPA gets disapproved by CMS, then our intention would be to do the same thing we did last year and take that money and roll it into the strategic line item to be paid to the Trust for strategic initiatives that Eric Atkinson brings forward during the budget.
   • Motion:
   • Motion to approve the FY 2027 budget for appropriated funds
   • Motion moved by Clay Bullard and motion seconded by Tracy Poole. Aye: Herndon, Stephens, Bullard, Steichen, Poole Nay: None Abstain: None
6. Discussion, Consideration and Possible Vote to Authorize the Chairman to Execute a Cooperative Agreement with Oklahoma State University for Fiscal Year 2027 in the Amount of $44,762,126 (Presenters: Eric Polak)
   • Annual renewal same as FY 2026
   • OSU Board of Regents legal counsel has not completed drafting the agreement. The agreement will be materially the same as the prior year. This request for approval is subject to legal counsel approval of the final agreement.
   • Motion:
   • Motion to authorize the Chairman to execute a cooperative agreement subject to legal counsel approval with Oklahoma State University for fiscal year 2027 in the amount of $44,762,126.
   • Motion moved by Tracy Poole and motion seconded by Barry Steichen. Aye: Herndon, Stephens, Bullard, Steichen, Poole Nay: None Abstain: None
7. Discussion, Consideration and Possible Vote to Authorize the CEO to Execute an Agreement with the OSU Medical Trust in the Base Amount of $22,967,848 to Provide the Annual Operational Subsidy and Strategic Initiative Funding (Presenters: Eric Polak)
   • This approval also authorizes an additional payment for strategic initiatives of $6,166,193 if dollars budgeted for state matching funds cannot be utilized for that purpose
   • File Name: FY 27 OSUMA to OSUMT subsidy Agreement.pdf
   • This agreement includes the base subsidy and the strategic capital. It is also being asked, if the Managed Medicaid/Managed Care IME spot is not approved by the CMS or is denied by them, then we transfer that $6,166,193 to strategic initiatives funding that could be paid at the end of the year. The new agreement is attached. Again, the requirements on the Trust largely fall in line with what is in the academic affiliation agreement, which requires them to maintain residents at the same count that was at the beginning of the fiscal year minus those that are dismissed or are off cycle. If we decide to do a service line reduction of some type or if there's’a desire to eliminate residency programs, then this has to be renegotiated at that point in time.
   • Motion:
   • Motion to authorize the CEO to execute an agreement with the OSU Medical Trust in the base amount of $22,967,848 to provide the Annual Operational Subsidy and Strategic Initiative Funding.
   • Motion moved by Barry Steichen and motion seconded by Clay Bullard. Aye: Herndon, Stephens, Bullard, Steichen, Poole Nay: None Abstain: None
8. Discussion, Consideration and Possible Vote to Authorize Payment to the OSU Medical Trust from the Psychiatry Residency Development Fund in the Amount of $257,646 (Presenters: Eric Polak)
   • Reimbursement is for the training costs of 3 psychiatry residents (1-PGYI, 1-PGYII, 1-PGYIII) Balance of funding at 6/30/26 projected to be $2,840,743
   • We were given a one-time fund for just over $3 million to help pay the startup costs of growing a psychiatry residency. Now the goal is at the end  of the day, the operations of the Oklahoma Psychiatric Care Center begin picking up expenses of the expanded residency program when we exhaust these funds here. We have been adding one psychiatric resident a year. This year we will have a PGY1, a PGY2, and a PGY3 on those expenses.
   • Motion:
   • Motion to authorize payment to the OSU Medical Trust from the Psychiatry Residency Development Fund in the amount of $257,646.
   • Motion moved by Johnny Stephens and motion seconded by Tracy Poole. Aye: Herndon, Stephens, Bullard, Steichen, Poole Nay: None Abstain: None
9. Discussion, Consideration and Possible Vote to Authorize the Chair, or their Designee, to Execute an Agreement with the OSU Center for Health Sciences for Services of a Chief Executive Officer for the Authority in an Amount not to exceed $108,725 (Presenters: Eric Polak)
   • File Name: OSUMA-OSUMT Eric Polak FY 27 PSA for CEO.pdf
   • Eric Polak explained that there has never been a contract in place between OSU and OSUMA for his services to serve as CEO of OSU Medical Authority. This is for .25 FTE to compensate the university for the portion of his time spent serving the Authority and Trust.
   • Motion:
   • Motion to authorize the Chair, or their Designee, to execute an agreement with the OSU Center for Health Sciences for services of a Chief Executive Officer for the Authority in an amount not to exceed $108,725.
   • Motion moved by Barry Steichen and motion seconded by Tracy Poole. Aye: Herndon, Stephens, Bullard, Steichen, Poole Nay: None Abstain: None
10. Discussion, Consideration and Possible Vote to Authorize the CEO to Amend and Execute Funding Agreements with Oklahoma State University for ARPA Funded Projects to Meet the Provisions of SB1134 (Presenters: Eric Polak)
    • Actions include:
      • the reduction of a previous sub award for the Human Performance Project by $16.2 million
      • execution of a new award in the amount of $16.2 million from state interest funds for the Human Performance Project
      • execution of a new award in the amount of $14 million from state interest funds for the expansion of the OSU Medical Center including the pharmaceutical research laboratories
    • Execution of agreements is subject to legal counsel approval
      • File Name: OSUMA SB1134 ENR.PDF
    • Eric gave overview of what legislation did to reduce the award and then to reallocate the dollars.
    • Motion:
    • Motion to authorize the CEO to amend and execute funding agreements with Oklahoma State University for ARPA funded projects to meet the provisions of SB1134.
    • Motion moved by Barry Steichen and motion seconded by Clay Bullard. Aye: Herndon, Stephens, Bullard, Steichen, Poole Nay: None Abstain: None
11. Discussion, Consideration and Possible Vote to Extend the Term of the Previously Awarded Behavioral Health Workforce Grants Through December 31, 2027 (Presenters: Eric Polak)
    • Tulsa Health Department - Completed Project
      OSU Center for Health Sciences - Extend $63,000 in student loan reimbursement through 8/31/27
      Saint Francis Health System - Extend $18,560 through 6/30/27
      Parkside - $246,578 through 6/30/27
      • File Name: Parkside - Proposed Pivot in Grant Implementation Strategy 2.25.26.pdf
      • Tulsa Health Department completed their project.
      • OSU Center for Health Sciences - A portion of OSU's was some student loan reimbursement for a new recruit. That recruiting took longer than was originally proposed. It is going to pay out through August of 2027 at $63,000.
      • St. Francis - They have been using the balance to train and upscale their behavioral health workforce, mostly getting certifications and additional training dollars.
      • Parkside - They determined that their previous program that they applied for was not going to be effective in the way that they thought it would be. They have asked for the opportunity to pivot and utilize the portion of those grant funds that are available for bed conversion and other things beyond just workforce upscaling. We asked them for further explanation on the technology purchases that they have in there to truly be able to prove that this allowed them to do the bed conversions that they did.
    • Motion:
    • Motion to extend the term of the previously awarded Behavioral Health Workforce Grants through December 31, 2027.
    • Motion moved by Tracy Poole and motion seconded by Johnny Stephens. Aye: Herndon, Stephens, Bullard, Poole Nay: None Abstain: Steichen
12. Discussion, Consideration and Possible Vote to Authorize the Chair to Execute the Annual Certification for Continuing the Level 1 Trauma Affiliation with Saint Francis Health System (Presenters: Eric Polak)
    • This action was advanced with a recommendation from the Liaison Committee at their meeting on June 16.
      • File Name: Level 1 Trauma Annual Certification.pdf
      • File Name: OSU-CHS-SFH-OSUMA-OSUMT-AffiliationAgreement-20260301.pdf
    • One of the requirements of the Level 1 Trauma legislation that was passed last year was that annually the Medical Authority certifies a Level 1 Trauma partner and that allows that Level 1 Trauma partner to be eligible to receive supplemental payments or directed payments through the Oklahoma Healthcare Authority. This went before the Liaison Committee, and the Liaison Committee recommended approval and recertification of St. Francis as the official Level 1 Trauma training partner at OSU.
    • Motion:
    • Motion to authorize the Chair to execute the annual certification for continuing the Level 1 Trauma Affiliation with Saint Francis Health System.
    • Motion moved by Johnny Stephens and motion seconded by Tracy Poole. Aye: Herndon, Stephens, Bullard, Poole Nay: None Abstain: Steichen
13. Discussion, consideration and possible vote to approve the FY 2026 Audit Engagements with Forvis - ACTION (Presenters: Eric Atkinson)
    
    • File Name: SBAR FY2026 FORVIS Engagements.pdf
    • This was discussed in detail at the Finance Committee meeting. No new questions or comments.
    • Motion:
    • Motion to approve the FY 2026 Audit Engagements with Forvis.
    • Motion moved by Johnny Stephens and motion seconded by Tracy Poole. Aye: Herndon, Stephens, Bullard, Steichen, Poole Nay: None Abstain: None
14. Announcements (Presenters: Mike Herndon)
    
    1. Next regularly scheduled meeting of the Authority is August 27, 2026, at the OSUMC 744 W. 9th St., Tulsa
       
15. Motion and Vote for Adjournment (Presenters: Mike Herndon)
    
    • Motion:
      
    • Motion to adjourn the meeting at 2:15 PM.
      
    • Motion moved by Barry Steichen and motion seconded by Tracy Poole. Aye: Herndon, Stephens, Bullard, Steichen, Poole 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.