OSU Medical Trust Finance Committee Minutes

OSU Medical Authority and Trust

Thursday, October 24, 2024 11:15 AM CDT
@ OSU-CHS, 1111 West 17th St., Tulsa, North Hall Executive Boardroom

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: Michael Herndon, Johnny Stephens, Jay Helm, Billy Taylor
Guests: Eric Atkinson, Ellen Buettner, Melissa Cox, Mike Fields, Becky Robins, CPA - FORVIS, Catherine Gann, Finny Mathew, Eric Polak, Michael Rogers, Bill Schloss, Terri Tinkler, Erica Woolf
Absent:
Members: Doug Evans, Barry Steichen

1. Call to Order (Presenters: Doug Evans)
   • A quorum was established, and the meeting was called to order at 11:20 AM by Johnny Stephens who is chairing the meeting on behalf of Doug Evans. Michael Herndon and Johnny Stephens are subbing in for Doug Evans and Barry Steichen.
2. Approval of the minutes from the August 22, 2024 meeting - ACTION (Presenters: Doug Evans)
   • File Name: Draft-OSU Medical Trust Finance Committee Minutes 8.22.2024.pdf
   • Motion: Motion to approve the minutes from the August 22, 2024 meeting.
   • Motion moved by Michael Herndon and motion seconded by Billy Taylor. Aye: Taylor, Herndon, Stephens Nay: None Abstain: None
3. Finance Reports
   1. 2024 Oklahoma State University Medical Authority Financial Statement Audit Presentation (Guests: Becky Robins, CPA - FORVIS)
      • File Name: OSUMA 6-24 FS TCWG DRAFT 102324.pdf
      • File Name: OSUMA 6-24 FS DRAFT 101724.pdf
        • Becky Robins reported the audit was unmodified or clean.
        • She discussed what they look at and focus on during the audit.
        • There are no new accounting standards this year and comparative financial statements were provided. There are no new disclosers.
        • No adjustments and no issues as related to allowances and net accounts receivable which is the larges risk area.
        • Two adjustments were made, impacting only the balance sheet.
          • Construction in Progress in Accounts Payable for the June 2024  Payment to Flintco for the Parking Garage
          • Lease Receivable and Deferred Liability for the lease with Select Specialty Hospital, not captured in the transition to GASB 87.
        • No material weaknesses or significant deficiencies.
        • Eric Atkinson mentioned this was reviewed with Doug Evans prior to meeting.
      • Motion: Motion to accept the 2024 audit report.
      • Motion moved by Michael Herndon and motion seconded by Billy Taylor. Aye: Helm, Taylor, Herndon, Stephens Nay: None Abstain: None
   2. Review of the MTD and YTD September 2024 Financials (Presenters: Melissa Cox, Eric Atkinson)
      • File Name: OSUMC September 2024 Presentation Finance.pdf
      • Melissa Cox for PS, LLC:
        • September visits are a little under budget due to the departure of the Pain Management group, as well as a few provider PTO days.
        • Net revenue missed budget due to Pain Management closure. PM was budgeted to receive $43k in net revenue in September.
        • Salaries are under budget due to lower FTE's. Supplies are lower due vaccine cost being lower than anticipated and not purchasing pain management supplies and medications.
        • Purchased Services are under budget due to the closure of the Pain Management Clinic.
      • Eric Atkinson for OSUMC:
        • The month of September did well compared to prior year and budget.
        • Slow on outpatient surgery volumes year-to-date
        • Favorable variances in SHOPP and DPP income are driving a variance to prior year off $1.2 million.
        • Fluctuations in supplies have been recognized in Q1 as OSUMC has rolled out Oracle. YTD supplies are in line with budget and expectations.
        • Purchased services YTD variance is primarily driven from $673k variance.
        • Days cash on hand at 217 for the month of September.
        • Transfers are doing well with denials very low.
        • Payor mix does not show much of a shift from prior year.
        • ACR Proforma Comparison-actual DPP is around $11.2 million compared to expected payments of $10.4 million.
        • Oracle implementation is in phase 2 and phase 2b which is human resources and payroll. The one concerning area has been advanced scheduling. We have either identified a workaround or they found something in a future update that will be released. Nursing will go live January 1st.
4. Policy Review and Approval (Presenters: Eric Atkinson)
   1. Discussion, consideration and possible vote to approve the Risk Management Plan - ACTION (Presenters: Eric Atkinson)
      • File Name: Risk Management Plan.pdf
      • Finny Mathew explained the rationale behind bringing the risk management to the Board instead of staying in Quality. Eric Atkinson went over the changes from the previous plan. There are no significant changes.
      • Motion: Motion to recommend to the Trust to approve the Risk Management Plan.
      • Motion moved by Michael Herndon and motion seconded by Billy Taylor. Aye: Helm, Taylor, Herndon, Stephens Nay: None Abstain: None
   2. Discussion, consideration and possible vote to approve the Cash Posting and Reconciliation Procedures Policy - ACTION (Presenters: Eric Atkinson)
      
      • File Name: Cash Posting and Reconciliation Procedures.pdf
        
      • Eric Atkinson discussed the changes from the previous plan including changing the word Meditech to Epic. There were no questions or concerns.
        
      • Motion: Motion to recommend to the Trust to approve the Cash Posting and Reconciliation Procedures Policy.
        
      • Motion moved by Billy Taylor and motion seconded by Jay Helm. Aye: Helm, Taylor, Herndon, Stephens Nay: None Abstain: None
        
   3. Discussion, consideration and possible vote to approve the Financial Policy Non- Emergent Services - ACTION (Presenters: Eric Atkinson)
      
      • File Name: Financial Policy Non-Emergent Services.pdf
        
      • Eric Atkinson discussed the changes from the previous plan. There were no questions or concerns.
        
      • Motion: Motion to recommend to the Trust to approve the Financial Policy Non-Emergent Services.
        
      • Motion moved by Michael Herndon and motion seconded by Jay Helm. Aye: Helm, Taylor, Herndon, Stephens Nay: None Abstain: None
        
5. HireCall Building Update (Presenters: Bill Schloss)
   
   • File Name: HireCall.update10.23.24.pptx
     
   • Bill Schloss gave an update on the HireCall building purchase and development plan. Flintco and Dewberry were engaged to show what the building might look like. He went over the PowerPoint showing what the building could be used for, our needs, the development cost, and next steps.
     
6. Discussion, consideration, and possible vote to approve a previously budgeted bonus payout for employees - ACTION (Presenters: Eric Atkinson)
   
   • File Name: SBAR Employee Bonuses 2024.pdf
     
   • Eric Atkinson discussed the types of bonuses being requested. The bonuses have been accounted for in the budget.
     
   • Motion: Motion to recommend to the Trust to approve a previously budgeted bonus payout for employees.
     
   • Motion moved by Jay Helm and motion seconded by Billy Taylor. Aye: Helm, Taylor, Herndon, Stephens Nay: None Abstain: None
     
7. Discussion regarding the hospital expansion project (Presenters: Eric Atkinson, Catherine Gann)
   
   • File Name: SBAR Hospital Expansion - Finance.pdf
     
   • Finny Mathew went over the SBAR Hospital Expansion. The hospital is putting together the business plan for the expansion, and then the Finance Committee is tasked with figuring out how to pay for it, depending on what all is approved. It is being asked a member of the Finance Committee work with Hospital Admin about the different cash flow models. Billy Taylor agreed to represent the Finance Committee. The project is between $175-$200 million. This is wanting to be brought back to the Authority and Trust in December.
   • Eric Atkinson discussed the multiple sample scenarios to fund the project based on variable assumptions; $50 million in ARPA funds, $30 million in strategic capitol, that leaves $120 million the Trust needs to find funding for. 60 days cash on hand and 90 days cash on hand scenarios were presented through Exhibits A-F.
     
8. Unfinished Business (Presenters: Doug Evans)
   
   • None
9. New Business (Presenters: Doug Evans)
   
   • None
10. Adjournment (Presenters: Doug Evans)
    
    • Motion: Motion to adjourn meeting at 1:03PM.
      
    • Motion moved by Billy Taylor and motion seconded by Jay Helm. Aye: Helm, Taylor, Herndon, Stephens Nay: None Abstain: None

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

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