OSU Medical Trust Finance Committee Minutes

OSU Medical Authority and Trust

Thursday, April 23, 2026 12:00 PMCDT
@ OSU Medical Center, 2nd Floor Executive Boardroom, 744 W. 9th St., Tulsa

Agenda

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: Jay Helm, Brett Lessley, Tracy Poole, Barry Steichen
Guests: Eric Atkinson, Liz Beesley (remote), Rick Brewster (remote), Mike Fields (remote),
Courtney Finocchiaro, Catherine Gann, Michael Herndon, Melissa Macarthur, Finny Mathew, Eric Polak, Jessica Russell (remote), Christine Shasteen (remote), Jamie Simons (remote), Johnny Stephens, Terri Tinkler, Erica Woolf

1. Call to order (Presenters: Brett Lessley)
   • A quorum was established, and the meeting was called to order at 12:13 PM by Brett Lessley.
2. Approval of the minutes from the March 26, 2026 meeting -ACTION (Presenters: Brett
   Lessley)
   • File Name: Draft-OSU Medical Trust Finance Committee Minutes 3.26.2026.pdf
   • Motion: Motion to approve the minutes from the March 26, 2026, meeting.
   • Motion moved by Jay Helm and motion seconded by Tracy Poole. Aye: Lessley, Helm, Poole Nay: None Abstain: None
3. Finance Reports
   1. Review of Month to Date and Year to Date March 2026 Financials (Presenters:
      Eric Atkinson)
      • File Name: OSUMT Mar 2026 Financial Presentation - Finance Cornmittee.pdf
      • Eric Polak-PS, LLC
        • Key volume statistics
          • Both hospital and clinic visits favorable to budget due to incoming providers ramping up.
          • Clinic FTEs remain favorable to budget.
          • Employed provider FTE lowered by 1.0 due to the departure of Hallie Frederick.
          • Saw a shift from Medicare to traditional and managed Medicaid.
        • Income Statement-March 2026
          • Net Revenue favorable to budget due to increase in volume.
            • Favorable to prior year due to new service line volume.
          • Salaries, Wages, and Employee Benefits unfavorable to budget due to quarterly physician bonus payout and increased volume.
          • Contract Services unfavorable to prior year due to addition of Orthopedic service line.
          • Rents and Leases unfavorable to prior year due to Sand Springs clinic move and Riverside facility repair
      • Eric Atkinson OSUMC
        • Key volume IP Statistics
          • We came in favorable on stats for admissions for the month of March and observations were slightly below budget which indicates healthy length of stay. Higher admins, lower patient days, indicating that throughput initiatives that we are working on really are coming to fruition.
        • Key volume OP Statistics
          • ER visits were in line with budget.
          • Surgery came in favorable to budget.
          • Ortho growth came in heavier than planned.
          • Cath Lab and GI are both 30% above budget.
          • Solid volumes coming through procedural areas which shows in higher net patient service revenue.
        • Income Statement-March 2026
          • Increased admissions (22, 3.5%), surgeries (77, 24.4%), Cath Lab and GI all favorable in volumes are driving gross charges and Net Patient Revenue compared to budget.
          • Other Income increased to PY related to increased Residency billing
          • Contract Services exceeding PY related to PYA engagement for Compliance Risk Assessment, FORVIS engagements related to service line and market analysis and increased Oracle support costs.
          • Revenue Share exceeding budget based on monthly and YTD performance. Increase to PY based on projected EBITDA for FY26 (change in accrual methodology).
          • Water bill $100k due to City of Tulsa unable to read meter during construction.
          • Net operating income lower to PY based on decreased OSUMA allocations received in FY26 in order to fund potential Managed Medicaid IME program.
        • Income Statement-YTD March 2026
          • High volumes with 173 admits (3.1%) and 491 surgeries (17.5%) favorable to budget is driving higher NPSR. Admits 248 (4.5%) and surgeries 658 (24.9%} higher than PYTD.
          • Professional Fees PY variances largely driven by subsidies (DIA for IR, DIA for Diagnostic Imaging, UTB for Anesthesia and EM Coverage through CHS). $1M DIA, $730k UTB and $750k ED Medicine.
          • Contract Service is down to PY due to bringing Dialysis in house ($1.2M) and no longer parking off-site ($1.1M). Outside Consulting fees are driving an unfavorable variance to budget of $350k.
          • Revenue Share exceeding budget based on monthly and YTD financial performance.
          • Lower to PY based on decreased OSUMA allocations received in FY26 in order to fund potential Managed Medicaid IME program.
        • Key Financial Ratios
          • Net patient revenue per Adjusted Admit has come down over the prior year to budget driven primarily from the outpatient factor increasing.
          • Days cash on hand still healthy.
        • Transfer analysis
          • Acceptance rate is still extremely high.
        • RN FTEs by Type
          • Overall nursing FTEs and contract FTEs came down.
        • Consolidated income
          • Came in just over 500,000 variable per month which brought on moving to about 4M favorable to budget YTD.
        • ACR Proforma
          • We have a reserve for the DPP payments in excess of what we calculated. We should have been reimbursed from actual volumes. That accrual is up to about $S.9M that we have reserved for the event of a potential payback due to a reconciliation on that program.
4. Review of Insurance Policies Changes Effective May 2026 (Presenters: Eric Atkinson)
   • File Name: 26-27 Premium Summary.pdf
   • Eric Atkinson introduced Liz Beesley and Christine Shasteen from HUB. We were able to finalize quotes and get accurate numbers. No changes in coverage since our last meeting, but the rates may have changed slightly from where we were in the last meeting. Major drivers of our premium increase are both property and workers comp. Property total insured value increased by $SOM but the rate came down by 5%. FM Global offered to come down 5% for the next two years as long as we signed with them.
   • Motion: Recommendation to Trust to accept the premiums as they are
   • Motion moved by Jay Helm and motion seconded by Tracy Poole. Aye: Lessley, Helm, Poole Nay: None Abstain: None
5. Discussion of the In-Progress FY27 Operating Budget (Presenters: Eric Atkinson)
   • File Name: FY27 In Progress Budget Update.pdf
   • Eric Atkinson presented the FY27 budget but informed the Board this is only the high level. It will come back in June to be voted on.
     • Eric Polak-PS, LLC
       • Budget assumptions
         • Growth/volume and revenue initiatives
           • Expansion of new orthopedic service line
           • Wound/hyperbaric service line
           • Family medicine service line
           • Sports medicine team physician in Stillwater
           • Increase quality measure rebates received in FY26
         • Expense initiatives
           • Inflation of 5% for professional fees, contract services, R&M, rentals, and utilities.
           • Inflation of 10% for supplies
           • Staff merit increase of 3%
           • CHS contract service agreement increase with updated management agreement
             • Clinic leadership S&B
             • Three referral specialist
           • Anticipated Okmulgee clinic closure
             • November 2026
         • FY27 opportunities
           • Expansion of new Orthopedic Service Line
           • Plastic surgery service line
           • Family Medicine Service Line
         • FY27 initiatives
           • Dermatology Service line
           • Endocrinology Service Line, Diabetes Center of Excellence
     • Eric Atkinson-OSUMC
       • Growth/volume and revenue initiatives
         • SHOPP reimbursement, assessment and ACR Direct Payment Plan held consistent with current run rate
         • Increased admissions and surgery volume
         • VA Hospital opening inf Fall 2026
         • Decreased IP and ED visits due to losing McAlester ED agreement
         • ED volumes held flat, however potential opportunity depending on VA patient workflows
       • Expense initiatives
         • Salary adjustments
         • Increase in supplies
         • Increase of $1.SM in Ortho supply
         • Reduction of $400k in supplies for Surpass/On hand rebates
         • Reduction of rev share to maximum benefit of $SM
         • Decrease of 30 contract labor FTE's, flipping to core staff
         • Estimated 5% increase on medical benefit expenses 1/1/2026
         • Increased benefit costs for Dep. Child Tuition waiver and retirement contribution
       • Statistical Comparison
         • Increase over projection by 60.
         • Patient Days coming up in accordance with what we are seeing there
         • ER visits are actually going up about 1600.

     Barry Steichen wants to see a schedule of supplemental funding because that seems to be fluid in terms of reconciliation. He would like to see a range of likely, less likely, and more likely.

6. Discussion and consideration to authorize OSUMCPS LLC administration to begin the complete the design of a new medical clinic in Collinsville. (Presenters: Bill Schloss)
   • Intent is to design a clinic that will have the ultimate capacity to house up to 8 providers at the property owned by the Trust in Collinsville, Oklahoma. Conceptual construction budget is $5.5 million with an additional $1 million in soft costs. A final budget will be brought to the Trust for approval at the completion of construction documents.
   • File Name: PSLLC- Collinsville Assessment.01.20.25.pptx
     • Bill Schloss presented the MOB.
     • Compared to the other Tulsa-area healthcare systems, OSU Medicine's primary care and specialty care physician base is underdeveloped with significant growth indicated.
     • 58% of OSU Admissions come from ER Transfers.
     • He discussed the primary care provider numbers for us vs. St. John's, Warren Clinic, and Hilcrest.
     • Targets were discussed for primary care growth and current expansion priorities.
     • Discussion between 6-physician clinic vs 8-physician clinic and cost for each.
     • PS, LLC Management felt confident they could recruit existing providers from the area and meet the expectations of the proforma.
     • He went over the different areas of project costs and financing options.
     • Jay Helm recommended building the 8-physicain clinic.
   • Motion: Motion to authorize OSUMCPS LLC administration to begin to complete the design of a new medical clinic in Collinsville.
   • Motion moved by Billy Taylor and motion seconded by Jay Helm. Aye: Taylor, Steichen, Helm, Evans Nay: None Abstain: None
7. Unfinished Business (Presenters: Brett Lessley)
8. New Business (Presenters: Brett Lessley)
9. Adjournment (Presenters: Brett Lessley)

Minutes signed off by Oklahoma State University Medical Trust Finance Committee Secretary, Michael Herndon.

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