OSU Medical Trust Finance Committee Minutes

OSU Medical Authority and Trust

Thursday, April 24, 2025 12:00 PM CDT
@ OSU-CHS, North Hall 4th Floor Boardroom, 1111 West 17th St., Tulsa

Agenda

Notice of the meeting was given in writing in 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, Michael Herndon, Barry Steichen, Johnny Stephens
Guests: Christine Shasteen (HUB) (remote), Liz Beesley (HUB) (remote), Eric Atkinson, Damon Baker, Adam Bradley, Deborah Dage, Mike Fields, Catherine Gann, Paige Mackey (remote), Finny Mathew, Eric Polak, Michael Rogers, Jessica Russell (remote), Bill Schloss, Terri Tinkler, Erica Woolf

1. Call to order
   • A quorum was established, and the meeting was called to order at 12:03 PM by Chairman Jay Helm.
2. Approval of the minutes from the March 27, 2025 meeting - ACTION
   • File Name: Draft-OSU Medical Trust Finance Committee Minutes 3.27.2025.pdf
   • Motion: Motion to approve the minutes from the March 27, 2025 meeting.
   • Motion moved by Michael Herndon and motion seconded by Johnny Stephens. Aye: Steichen, Helm, Herndon, Stephens Nay: None Abstain: None
3. Finance Reports
   1. Review of Month to Date and Year to Date March 2025 Financials (Presenters: Melissa Cox, Eric Atkinson)
      • File Name: OSUMT March 2025 Financial Presentation - Finance.pdf
      • Melissa Cox PS, LLC:
        March 2025
        • Hospital visits are favorable to budget due to Pulmonology cover the ICU.
        • Clinic visits are unfavorable due to Pain Management contract cancellation, Endocrinology ramp up, and provider PTО.
        • Clinic FTE's favorable to budget due to Pain Management (5 FTE's budgeted) and staffing shortage.
        • Net revenue is favorable to budget due to increase in inpatient pulmonary services.
        • Salaries are unfavorable to budget due to pulmonology physician salaries.
      • Year-to-date
        • Net revenue is favorable to budget due to increase in inpatient pulmonary services and quality measure payments.
        • Salaries are favorable to budget due to low staffing.
        • Supplies are favorable to budget due to lower vaccine cost and closing Pain Management Clinic.
        • Contract Services are favorable to budget due to the cancelation of the Pain Management group contract.
        • Rents and Leases are unfavorable to budget due to OPEX for Harvard Clinic for previous years.
      • Eric Atkinson OSUMC:
        March 2025
        • Total admissions and observations favorable to budget.
        • Average daily census is favorable to budget.
        • ER visits are just under budget. Year-to-date is still healthy.
        • Surgery a little below to budget.
        • Mammography has rebounded from previous months.
        • High volumes with 129 and 118 admits favorable to budget and prior year, is driving higher net patient service revenue.
        • Increase to prior year for DPP payments received.
        • Professional fees include budget and prior year variances largely driven by $320k of subsidies (DIA for IR of $177k, DIA for Diagnostic imaging of $117k and UTB for Anesthesia of $30k).
        • Revenue Share exceeding budget and prior year based on monthly and YTD financial performance. FY25 projections build into March.
        • Lower interest income was budgeted based on expected cash outflows for major capital projects. Cash expended on those projects in FY25 is driving lower interest income than prior year.
      • Year-to-Date
        • The revenue share expense is exceeding budget by $2.4M and more than previous year by $2.2M.
        • Telephone is favorable by $200k due to budgeting for our voice telephone system.
        • Shifts in operating expenses between depreciation and amortization due to GASB 87 and GASB 96 classifications.
        • Lower interest income was budgeted based on expected cash outflows for major capital projects. Cash expended on those projects in FY25 is driving lower interest income than prior year.
      • Key Financial Ratios
        • Patient transfer acceptance rate is high.
        • Patient denial rate is low.
        • Contract RN FTE's is high - HR conversion to Oracle has slowed recruiting.
      • Consolidated Income Statement
        • We ended the month $360,000 favorable to budget which puts us $8.7M favorable year to date consolidated through the first three quarters.
4. Review of Insurance Policies Changes Effective May 2025 (Presenters: Eric Atkinson)
   • File Name: Insurance Proposal FY2026.pdf
   • Eric Atkinson explained the conversations that have happened over the different insurance changes and reasoning for each change. He went through the premium options and got the Boards opinion. Christine Shasteen and Liz Beesley with HUB were available to answer questions. Overall savings of nearly $400k to current premiums due to the efforts of the facilities team and HUB coordinating efforts to make our facility easier to insure.
   • Motion: Motion to move the insurance changes forward to the Trust for approval.
   • Motion moved by Barry Steichen and motion seconded by Johnny Stephens. Aye: Steichen, Helm, Herndon, Stephens Nay: None Abstain: None
5. Review of the In-Progress FY26 Operating Budget (Presenters: Melissa Cox, Eric Atkinson)
   • File Name: PS, LLC Operating Budget FY2026.pdf
   • File Name: OSUMC Operating Budget FY2026.pdf
   • Melissa Cox PS, LLC: Melissa gave the projected budget for the following:
     • Growth/Volume and Revenue Initiatives.
     • Addition of new orthopedic services line.
     • Addition of new gastroenterology service line.
     • Wound/Hyperbaric service line.
     • Family Medicine service line.
     • Increase quality measure for rebates received in FY25.
     • Expense initiatives.
     • Potential opportunities and expenses.
   • Melissa went over the statistical comparison between FY25 and FY26 with new visits, clinic visits, hospital visits, home visits, and total visits. She also went over RVU's, clinic FTE's, provider FTE's, leased provider FTE's, total FTE's, and total staff/total provider ratios.
   • Eric Atkinson OSUMC: Eric gave the projected budget for the following:
     • Growth/Volume and Revenue Initiatives. Not included are volumes related to VA/Psych hospitals which open summer 2026 and fall 2026 respectively.
     • Expense initiatives. Not included are additional staffing needs for dietary, pharmacy and other services for VA/Psych hospitals.
   • Eric went over the statistical comparison with IP Statistics and OP/Procedural statistics. He also went over the hospital financial statement comparison and opportunities and risks.
6. Unfinished Business
   • None
7. New Business
   • None
8. Adjournment
   • Motion: Motion to adjourn the meeting at 1:44 РМ.
   • Motion moved by Johnny Stephens and motion seconded by Michael Herndon. Aye: Steichen, Helm, Herndon, Stephens Nay: None Abstain: None

Minutes signed off by Oklahoma State University Medical Trust Chairman, Jay Helm.

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