OSU Medical Trust Finance Committee Minutes
OSU Medical Authority and Trust
Thursday, March 27, 2025 11:15 AM 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: Doug Evans, Jay Helm, Barry Steichen
Guests: Eric Atkinson, Deborah Dage, Mike Fields, Catherine Gann, FinnyMathew, Eric Polak, Michael Rogers, Bill Schloss, Terri Tinkler, Erica Woolf
Outside guests: Tristan Loveless (NonDoc), Liz Beesley (remote), Monica Collington, Christine Shasteen (remote)
Absent:
Members: Billy Taylor
- Call to order - Trustee Doug Evans, Committee Chairman
- A quorum was established, and the meeting was called to order at 11:17 AM by Doug Evans.
- Approval of the minutes from the January 23, 2025, meeting - Doug Evans, Committee Chairman - ACTION
- File Name: Draft-OSU Medical Trust Finance Committee Minutes 1.23.2025.pdf
- Motion: Motion to approve the minutes from the January 23, 2025, meeting.
- Motion moved by Jay Helm and motion seconded by Barry Steichen. Aye: Steichen, Evans, Helm Nay: None Abstain: None
- Finance Reports - Eric Atkinson, CFO
- Review of Month to Date and Year to Date February 2025 Financials (Presenters: Melissa Cox, Eric Atkinson)
- File Name: OSUMT February 2025 Financial Presentation - -inance Committee.pdf
- Bill Schloss PS, LLC:
Key Volume Statistics:- OSUMC ICU is being overseen by Dr. Daher and Dr. Polito which has significantly increased hospital visits.
- Clinic visits were under due to the departure of pain management, as well as several inclement weather days.
- Clinic FTES are under budget due to staff shortages.
- Income Statement for Feb. 2025:
- Net patient revenue is favorable to budget due to quality payments and Pulmonology ICO coverage.
- Salaries are unfavorable to budget due to Dr. Daher and Dr. Polito high productivity bonuses.
- Supplies are under budget due to lower than anticipated vaccine cost and savings from the Pain Management Clinic.
- Leases are unfavorable to budget due to 2024 OPEX for Harvard and a new Pulmonology lease.
- Purchased Services are favorable to budget due to the departure of pain management.
- Eric Atkinson OSUMC:
Key Volume IP Statistics:- Came in favorable to budget and prior year from admissions standpoint.
- Total patient days and observation days favorable to budget.
- Average daily census higher to budget.
- Total deliveries favorable to budget
- Key volume OP Statistics:
- Emergency room visits just below budget.
- Mammo is lower to budget, Rev Cycle team diligently working on processes to ensure these volumes are recovering, which we are seeing in March MTD.
- Income Statement for Feb. 2025:
- High volumes (92 admits over budget) and consistent payor mix is driving a favorable variance to budget in NPSR. Favorable variances in NPSR offset by Other Op Revenue due to cost report adjustment booked in FY24, not recurring in FY25 and the SHOPP revenue recognition in other op revenue in FY24, not recurring FY25.
- Purchased Services includes the Revenue Share expense is exceeding budget by $690k and more than PY by $575k. In line with EBITDA increases over prior year and budget.
- Additional budget and PY variances largely driven by $400k of professional fee subsides (DIA for IR of $192k, DIA for diagnostic imaging of $117k and UTB for Anesthesia of $100k).
- 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.
- Net Income is favorable to Budget by $33k and unfavorable to PY by $163k.
- Income Statement YTD:
- Purchased services includes the Revenue Share expense is exceeding
budget by $2.4M and more than PY by $2.2M. Additional budget and PY variances largely driven Professional Fee subsidies (DIA for IR, DIA for Diagnostic imaging and UTB for Anesthesia.) Additional unbudgeted outside consultant fees of $300k. PY variances driven by American Parking of $1M. - Rentals exceeding PYTD but in line with budget due to rental income recognized on OSUMC through Jan 2024.
- 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.
- Net Income is favorable to budget by $6.8M and PY by $3M
- Purchased services includes the Revenue Share expense is exceeding
- Key Financial Ratios:
- FTE per adjusted outpatient bed is favorable to budget and PY, indicating healthy staffing ratios.
- Days cash on hand down from prior year due to ERP project and the parking garage project.
- Acceptance and denials are higher than this time last year.
- Have remained flat on Nursing FTE's'hospital employed. Inhouse travelers have moved back to contract labor.
- Payor mix is consistent with where we were trending last year.
- Consolidated Income Statement:
- Ended the month $142,000 favorable to budget for the Trust.
- February 2025 year-to-date variance prior year and budget that is showing $8.4 million favorable to budget and $3 million favorable to prior year.
- ACR Proforma Comparison-more research is being done on the reasoning behind the numbers.
- Financial Operations Update (Presenters: Eric Atkinson)
- Eric Atkinson gave an update with the applications of a new Administration.
One of the largest risks is site neutrality. Could be a potential $5M hit in revenue per year. Also, potential Medicaid and Medicare cuts could impact the hospital by $2.5M each. - Some HRSA funding for OMECO resident program reimbursement we were hoping for, did not go through.
- Insurance renewal will be coming forward in next Trust meeting. We will be saving some money in the wind and hail buy down with new vendor. Primary vendor we are looking at is FM Global.
- Christine Shasteen with Hub International joined the meeting to discuss insurance possibilities.
- Eric Atkinson gave an update with the applications of a new Administration.
- Review of Month to Date and Year to Date February 2025 Financials (Presenters: Melissa Cox, Eric Atkinson)
- Discussion and consideration for recommendation of resident and fellow salary increases for the next academic year. (Presenters: Eric Atkinson)
- File Name: FY26 Proposed Budget --ME.pdf
- Eric Atkinson presented the findings from the Liaison Committee with a proposed 2.5% increase per year. This is where we typically want to be, and it puts us lower than OU by about 1.5%. This recommendation was unanimously voted on by the Liaison Committee. Barry Steichen discussed the reasoning given inside the Liaison Committee to stay with 2.5% instead of 4%. Jay Helm asked to be more aggressive and bump this to 4% to stay competitive with OU.
- Motion: Recommendation to Trust for resident and fellow salary increases for the next academic year with an increase to 4%.
- Motion moved by Jay Helm and motion seconded by Billy Taylor. Aye: Evans, Helm, Taylor Nay: Steichen Abstain: None
- File Name: FY26 Proposed Budget --ME.pdf
- Unfinished Business - trustee Doug Evans, Committee Chairman
- None
- New Business - trustee Doug Evans, Committee Chairman
- None
- Adjournment - trustee Doug Evans, Committee Chairman
- Motion: Motion to adjourn the meeting at 12:35 PМ.
- Motion moved by Jay Helm and motion seconded by Barry Steichen. Aye: Steichen, Evans, Helm Nay: None Abstain: None
- Motion: Motion to adjourn the meeting at 12:35 PМ.
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.