OSU Medical Trust Minutes

OSU Medical Trust

Thursday, October 27, 2026 1: 15 PM CDT to 3:45 PM CDT
@ 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: Michael Herndon, Brett Lessley, Barry Steichen, Johnny Stephens, Jay Helm, Aaron Morris Members
Absent: Tracy Poole
Guests: Eric Atkinson, Damon Baker, Steve Thompson, Kathy Cook, Deborah Dage, Mike Fields, Catherine Gann, Melissa Macarthur, Finny Mathew, Erica Woolf, Terri Tinkler, Leslie Stewart, Dennis Blankenship, Mo Som, Damon Baker, Jami Longacre (remote), Karlee Belle Ghoulson, Shannon Sumner, Erin Walker

1. Call to order and establishment of a quorum
   • Presented By Jay Helm
   • The meeting was called to order at 1 :30 PM by Jay Helm. After a roll call, Jay Helm declared that a quorum of the Trustees of the Oklahoma State University Medical Trust was present for the meeting.
2. Recognition of Aaron Morris filling the seat on the Trust statutorily assigned to the Chief Executive Officer of the Oklahoma Healthcare Authority
   • Presented By Jay Helm
   • Jay Helm once again welcomed Aaron Morris to the Board and thanked him for coming.
3. Discussion, consideration, and possible vote to approve the minutes from the June 25, 2026 meeting, and any amendments made thereto by Trustees - ACTION
   • Presented By Jay Helm
   • Motion: Motion to approve the minutes from the June 25, 2026 meeting, and any amendments made thereto by Trustees.
   • Motion moved by Barry Steichen and motion seconded by Brett Lessley. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
4. Discussion, consideration, and possible vote to elect officers of the Authority for Fiscal Year 2027 - ACTION
   • The board proceeded with the election of officers for the coming fiscal year, nominating Jay Helm as chair, Mike Herndon as vice chair and secretary, and Brett Leslie as treasurer. The board discussed eligibility and voting procedures, confirming that nominees could vote for themselves.
   • Motion: Motion to nominate Jay Helm as chair, Mike Herndon as vice chair and secretary, and Brett Lessley as treasurer for the coming fiscal year.
   • Motion moved by Johnny Stephens and motion seconded by Barry Steichen. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
5. Summary of the July 2026, Quality Committee of the Trust Meeting
   • Presented By Michael Herndon
     1. Information Only
        1. Quality Committee of the Trust Meeting Minutes
        2. ACHC Post Survey Compliance Monitoring
        3. Orange Team and Blue Team Pl Dashboards presented 2026.08.20
           • The Committee of the Trust met on the August 20th and reviewed multiple policies requiring updates and revisions, including those related to compression therapy for venous, arterial, and neuropathic extremity disease, and the medical equipment management plan.
           • The committee examined process improvement reports from the orange and blue teams, identified areas needing improvement, and discussed measures being implemented to address these issues. Some process improvement measures were revised or newly suggested by staff.
           • ACH post-survey compliance was reviewed. The committee has completed all action plans related to the ACHC survey, which occurs every three years, and has sent an interim progress report to ACHC. Awaiting ACHC's response.
           • Pay for performance and quality reports were reviewed, with positive outcomes noted.
6. Recommendations of the Medical Executive Committee from its meeting on August 19th, 2026
   • Presented By Kathy Cook
     1. Discussion, consideration and possible vote to approve National Board of Physicians and Surgeons as an alternative recertification pathway - ACTION
        • Presented By Damon Baker
          • Discussion initiated regarding requests from three physicians to use the National Board of Physicians and Surgeons (NBPAS) for board recertification, as an alternative to traditional boards.
          • Credentials Committee and Medical Executive Committee have approved NBPAS as an acceptable means of recertification, but current bylaws specify AOA or ABMS certification for clinical privileges.
          • Clarification that accepting NBPAS would require a change to the medical staff bylaws, specifically Section 11, which currently limits board certification to AOA or ABMS.
          • Finny Mathew will work with Leslie Stewart to resolve the bylaws change process, potentially requiring a special meeting of the medical staff, and expects resolution by the October 22nd board meeting.
          • Interim recommendation to approve recertification requests on a case-by-case basis, pending a formal bylaws change and broader discussion with accrediting bodies.
          • Recertifications using NBPAS will be reviewed by the credentials committee and approved by the chair on a case-by-case basis, with broader approval tabled until the next board meeting.
          • Motion: Motion made to table the broader approval of NBPAS recertification pending medical staff recommendation, and to allow the credentials committee and chair to approve individual recertifications on a case-by-case basis until the next board meeting.
          • Motion moved by Mike Herndon and motion seconded by Johnny Stephens. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
     2. Discussion, consideration, and possible vote to approve the Organized Medical Staff Initial Appointments - ACTION
        • Presented By Kathy Cook
          • MEC recommended approval of seven initial applications for medical staff
            appointments.
          • Motion: Motion to approve the seven initial appointment applications as recommended.
          • Motion moved by Johnny Stephens and motion seconded by Mike Herndon. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
     3. Discussion, consideration, and possible vote to approve the Organized Medical Staff Reappointments - ACTION
        1. Presented By Kathy Cook
           • MEC recommended approval of 14 reappointment applications; no issues reported.
           • Motion: Motion to approve the 14 reappointment applications as recommended.
           • Motion moved by Mike Herndon and motion seconded by Johnny Stephens. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
     4. Discussion, consideration, and possible vote to approve the Organized Medical Staff Requests for Category Change - ACTION
        • Presented By Kathy Cook
          • Medical Executive Committee recommended approval for advancement of 1 O staff from provisional to appropriate category.
          • Motion: Motion to approve advancement of 1 O staff as recommended.
          • Motion moved by Mike Herndon and motion seconded by Johnny Stephens. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
     5. Discussion, consideration, and possible vote to approve the Organized Medical Staff Requests for Resignation - ACTION
        • Presented By Kathy Cook
          • Medical Executive Committee recommended acceptance of two resignations.
          • Discussion regarding DEA licensing delays, noting that while no credentialing issues have been reported. Some residents and APPs are affected, with many renewals due in October.
          • Suggestion to find out the current queue for DEA and OBNDD licensing and share information if available.
          • Motion: Motion to accept the two resignations as recommended.
          • Motion moved by Johnny Stephens and motion seconded by Barry Steichen. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
7. Presentation from PYA Regarding Board's Responsibilities for Compliance Oversight
   • Presented By Eric Atkinson
   • The Board received a presentation from PYA regarding the organization's compliance program risk assessment and recommendations to strengthen compliance oversight. The Board discussed compliance program expectations, including governance, auditing and monitoring, policies, training, and regular reporting. PYA recommended establishing formal compliance committee structures and regular reporting to the Board. Management also discussed plans to elevate the compliance leadership role to Compliance Director and Chief Compliance Officer and align the position's reporting relationship with compliance best practices.
     1. Discussion, consideration, and possible vote to Establish a Compliance Subcommittee of the Finance Committee
        • Presented By Eric Atkinson
        • The board discussed establishing a compliance subcommittee under the Finance Committee, which will have its own meetings and report findings to the Finance Committee. The subcommittee will have trustees assigned and a separate charter, distinct from the hospital working committee.
        • Motion: Motion to establish a compliance subcommittee of the Finance Committee and accept the charter as presented in the meeting packet.
        • Motion moved by Brett Lessley and motion seconded by Barry Steichen. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
     2. Discussion, consideration, and possible vote to approve the Charter of the OSUMT Compliance Committee
        • Presented By Leslie Stewart
        • Leslie Stewart clarified that the scope of the compliance committee charter includes hospital employees and will encompass PSLLC, with ad hoc members allowed as needed.
        • Motion: Motion to approve the charter of the OSU Medical Trust Compliance Committee and the subsequent charter.
        • Motion moved by Mike Herndon and motion seconded by Johnny Stephens. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
8. Semi Annual GME Update
   • Presented By Dr. Som
   • The Board received an update on Graduate Medical Education (GME) across Oklahoma and at OSU Medical Center, including program growth, accreditation status, funding, and future expansion opportunities. OSU Medical Center currently sponsors 17 residency and fellowship programs, with 15 holding continued accreditation and five additional programs in development or expansion. Discussion also addressed opportunities for continued program growth and the importance of maintaining a strong educational environment to support recruitment and retention.
9. FINANCE COMMITTEE
   • Presented By Brett Lessley
     1. Review of Month to Date and Year to Date June 2026 Financials
        • Presented By Eric Atkinson
          • Eric Atkinson presented the June month-to-date and year-to-date financial statements, highlighting favorable admission and observation volumes, improved length of stay due to throughput initiatives, increased case mix, and higher procedural volumes, especially in orthopedics and a 30% growth in Cath lab volume.
          • The monthly net income was reported as a favorable $13 million, primarily due to one-time funds from OSUMA earmarked for the managed Medicaid IME program. Year-to-date net position is favorable at $17 million, with $28 million in net income.
          • A question was raised regarding the governmental funding impacts, specifically about IME match funding, SHOPP, and OPP, noting a negative $13 million in the operating budget and a positive offset in management.
          • Eric explained a budget scenario slide showing the FY27 budget impact if all governmental funding, supplemental payments, and potential program cuts were removed. The scenario included a shift of 11-12% from self-pay to Medicaid due to Medicaid expansion, a potential negative $732,000 impact if 3408 funding went away, and possible impacts from site neutrality reductions.
          • A potential $7 million impact to OSU Medical Center from shortfalls in OCA funding and SHOPP program cuts was discussed as a scenario that did not materialize, but the board was reminded of the importance of governmental funding and supplemental payments to the Medical Center's financial position.
     2. Discussion, consideration, and possible vote to approve the FY2027 OSU Medical Trust Operating and Capital Budget - ACTION
        • Presented By Eric Atkinson
          • Discussion was held on the FY27 OSU Medical Trust operating and capital budget, including updates since the preliminary approval at the June meeting. Updates included the approval of initiatives such as hiring Dr. Shah (diabetologist), Dr. Natalie Polito (Family Care in Collinsville), potential hiring of two IR physicians at PSLLC, renewal of the DIA subsidy for IR, and a shift of $103,000 from supplemental payments to operating income.
          • The Finance Committee recommended the FY27 OSU Medical Trust operating and capital budget for approval by the Trust.
          • Motion: Motion to approve the FY27 OSU Medical Trust operating and capital budget.
          • Motion moved by Johnny Stephens and motion seconded by Brett Lessley. Aye: Herndon, Stephens, Steichen, Morris, Helm, Lessley Nay: none Abstain: none
10. CONTRACTUAL AGREEMENTS and EMPLOYMENT ACTIONS
    • Presented By Jay Helm
      1. Discussion, Consideration, and Possible Vote to Approve $8,424,270 to finish the 5th floor of the Surgical Expansion and authorize management to execute documents accordingly - ACTION
         • Presented By Finny Mathew
         • The Board discussed the proposed $8.4 million investment to complete the fifth floor of the new building for business operations, including construction, furniture, and equipment.
         • The Board reviewed project timing, overall capital needs, cash flow implications, and space constraints. Discussion also included potential future conversion of vacated space for clinical use, including a resident continuity clinic, which would require additional funding.
         • Management will bring forward a more detailed plan and recommendation for the use of the vacated space.
         • Motion: Motion to approve the advancement and completion of the 5th floor as proposed.
         • Motion moved by Johnny Stephens and motion seconded by Barry Steichen. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
      2. Capital Purchase of Ion Equipment
         • Presented By Erica Woolf
         • The Board discussed the proposed $1.27 million capital purchase of the Ion navigational bronchoscopy system, which is included in the FY27 capital budget. The technology will support earlier and more accurate diagnosis of lung nodules and is expected to improve lung cancer screening and diagnosis. The Board reviewed the project's financial projections, including anticipated net revenue of $3.3 million over five years and a positive operating margin beginning in year three. Management confirmed that grant funding and regulatory approvals are in place, construction is complete, and reimbursement assumptions were incorporated into the financial analysis.
         • Motion: Motion to approve the capital purchase of the Ion equipment.
         • Motion moved by Mike Herndon and motion seconded by Johnny Stephens. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
11. Discussion, consideration and possible vote to approve the Settlement Authority Policy-ACTION
    • Presented By Mike Fields
    • Discussion of the proposed Settlement Authority Policy, which delegates authority to the CEO to settle claims up to $100,000 per claim or suit, with a maximum of $250,000 in any one quarter. Settlements made under this authority must be reported at the next regular board meeting.
    • The policy includes provisions for reporting settlements that impact policies, procedures, or reputation, and allows for expedited decisions by involving the chair and polling trustees if urgent action is needed between meetings.
    • Quarterly and annual reporting requirements are included, with the opportunity for the board to review and adjust settlement authority amounts as needed.
    • Motion: Motion to approve the Settlement Authority Policy as presented.
    • Motion moved by Johnny Stephens and motion seconded by Mike Herndon. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: none Abstain: none
12. Oklahoma State University Medical Center President's Update
    • Presented By Finny Mathew
      • Leadership update: Jen Kaiser has been promoted to Human Resources Director, leaving the HR Manager position open and currently being recruited for. The Director of Supply Chain position is also open, with Eric Atkinson working to fill it with an interim person.
      • The Compliance Coordinator position will be upgraded to Director of Compliance and Chief Compliance Officer, consistent with current discussions.
      • A 'save the date' was announced for October 30th to celebrate the 10-year anniversary of the management relationship between the organization and the Saint Francis Board.
      • A new 10-year agreement has been signed with Saint Francis, which has provided significant benefits, including an estimated $8 to $10 million in savings on the Epic system through shared licensing.
      • The Cowboys and Clays fundraising event has surpassed $100,000 in committed sponsorships, with BOK as the major sponsor and St. Francis as a significant sponsor. Proceeds will support providing medically appropriate meals to patients post-discharge, likely in partnership with Meals on Wheels, to help prevent hospital readmissions.
      • A groundbreaking event was held in Collinsville, with strong community attendance and anticipation for future developments in that area.
        1. Construction Update
           • Presented By Catherine Gann
           • The Board received an update on the expansion project, including progress on concrete work, the $33.4 million mechanical subcontract, and upcoming construction activities that will affect patient windows.
           • The Board also discussed a significant future electrical shutdown due to risks associated with the aging electrical infrastructure. Management is conducting additional risk assessment and operational planning and will bring a detailed plan back to the Board for review.
           • The Board also reviewed the Collinsville project bidding process, including concerns regarding overall project costs and the timing of bid packages.
           • Management continues to evaluate value-engineering opportunities and project costs before proceeding with additional commitments.
        2. Information Only
           1. Collinsville Article
           2. OSUMC and Dr. Bradley Compliment
13. Unfinished Business
    • Presented By Jay Helm
    • None
14. NEW BUSINESS (Limited to Matters Not Known About and Which Could Not Have Been Reasonably Foreseen Prior to Posting of the Agenda)
    • Presented By Jay Helm
    • None
15. ANNOUNCEMENTS (if any)
    • Presented By Jay Helm
      1. Next regularly scheduled Trust meeting: Thursday, October 22, 2026, at OSUMC 744 West 9th St. Tulsa
16. EXECUTIVE SESSION
    1. Discussion and possible vote to enter Executive Session for the following purposes: - ACTION
       • Presented By Jay Helm
         • Pursuant to 25 O.S. § 307(8)(4) - 3:54 PM CDT
           • Presented By Erica Woolf, Finny Mathew, Leslie Stewart
         • Pursuant to 25 O.S. 307(8)(4), (7) - 3:59 PM CDT
           • Presented By Finny Mathew, Leslie Stewart
         • Pursuant to 25 O.S. 307(8)(4), (7) - 4:04 PM CDT
           • Presented By Finny Mathew, Leslie Stewart
       • Motion: Motion to enter into an Executive Session moved by Barry Steichen and motion seconded by Johnny Stephens. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: None Abstain: None
    2. Discussion, consideration, and possible vote to adjourn the Executive Session and reconvene to the Trust Meeting - ACTION
       
       • Presented By Jay Helm
       • Motion: Motion to adjourn the Executive Session and reconvene to the Trust meeting.
       • Motion moved by Johnny Stephens and motion seconded by Barry Steichen. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: None Abstain: None
17. Discussion, consideration and possible vote to allow Management to execute documents to settle PSE12882 as discussed in the executive session. - ACTION
    
    1. Presented By Jay Helm
       
18. Discussion, consideration and possible vote to allow Management to execute documents to settle Claim No. 1219061 as discussed in the executive session. - ACTION
    
19. Presented By Jay Helm
    
    • Motion: Motion to table items XVII and XVIII.
      
    • Motion moved by Barry Steichen and motion seconded by Johnny Stephens. Aye: Herndon, Stephens, Morris, Helm, Lessley, Steichen Nay: None Abstain: None
      
20. ADJOURNMENT
    
    • Presented By Jay Helm
      
    • Motion: Motion to adjourn the meeting at 3:55 PM.
      
    • Motion moved by Barry Steichen and motion seconded by Mike Herndon. Aye: Herndon,
      Stephens, Morris, Helm, Lessley, Steichen Nay: None Abstain: None

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

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