The meeting was called to order at 6:0 2 p.m. by David Green.

Present: Julie Woodworth    David Green

Jackie Dentz   Karen Berg-Forrester

Valerie Russell   Byrd Angelo Hillas

Excused: Bettyann Steciw   Robert Plymire

Absent: Jay Kennelty

Also Present: Charles Franz, CEO

Charlie Button, CFO

Fred Lau, BOD

Larry Dallas, Director of Support Services

Mark Talley, Controller/Purchasing Manager

Tom Walpole, Director of Human Resources

Iris Douglass    Jean Strutz    Sandra Thompson    Donna Anderson    Doris Engle

Elizabeth Johnson    Jean Stockburger    Jane Baier

Jan Hanenberger, Homer Secretarial Services

Doris Engle said while visiting her mother in LTC she has noticed how much time is requiring of the nurses for some of the residents with dementia and felt a special unit is needed for them.

Iris Douglass said she agreed with Ms. Engle.

Mr. Green said there are special requirements to accommodate this type of ward in a facility’s layout. Mr. Franz said at one time they had considered this type of unit in the expansion project,

but in order to allow enough space it drove the cost up to a point it was felt the community could not deal with. He said he has been holding meetings, with the charge nurses and the CNA’ s, looking at different ways to deal with some of the residents who have higher needs, and to streamline the work flow. Part of the problem in LTC is the new computer system, which will require a number of changes to eliminate some of the time spent entering information. Mr. Franz said he is very proud of the LTC staff and the quality of care they provide.

Mr. Green mentioned there is a shortage of CNA’s, with several of them going on into nursing upon completion of the CNA program. He encouraged the visitors to consider becoming a member of the SPH Foundation, which will be active in obtaining funds beyond those from the borough and operations of the hospital.

Ms. Woodworth said operating revenue was down for the month, as well as expenses. VA has revised their way of billing and the hospital received a revised bill, for approximately $65,000.00, from a miscalculation in 1995.

Ms. Woodworth said the bonds were out for purchase for the expansion project. Mr. Button informed the members that as of today the hospital now has $10.5 million in its account. Ms. Woodworth added they have leased the Botkin property. Mr. Button mentioned under NEW BUSINESS they would be discussing a proposed resolution for a commendation for Craig Chapman who was very instrumental in obtaining the bonding for the construction project.

Governance

There was no report.

Secretary

Mr. Hillas had no report.

Chairperson

Mr. Green briefly reviewed the circumstances regarding the purchase of the Botkin property and the prior assistance provided by Karen Berg-Forrester. They had requested two separate ordinances; one for the purchase of the Botkin property and one for payment of a consultant fee to Ms. Berg-Forrester. Since the hospital and Ms. Berg-Forrester had not renewed their contract, the borough Mayor would not support the payment of the consultant fee. Mr. Green asked the members to help prepare a case, to present to the Assembly, supporting the board’s action in awarding the consultant fee. Ms. Berg-Forrester offered to open her files to the Assembly.

Administrator

Mr. Franz reported the review and evaluation of the hospital’s mammography program received glowing comments by the American College of Radiology. The program, which is evaluated every three years, has not received any negative comments for nine years in a row.

Mr. Franz said they have started to remodel the Botkin property and upon completion will trigger a number of office moves.

Operating Board

Mr. Lau informed the members there was an issue with insurance at the last BOD meeting. They have scheduled a special meeting, on October 8th, to decide which company will be the hospital’s insurance carrier. Mr. Franz said they have received one proposal for Professional and General Liability insurance, and two for Directors and Officers coverage. He added there was a considerable increase of nearly 100%.

Mr. Lau said they have scheduled the Retreat for January 9th, 10th, and 11th, and have a committee working on a tentative agenda, which will then be forwarded to the SAB for suggestions. He mentioned there was considerable discussion for the Retreat to only involve board members, and n ot the general wide community, in order to deal with certain issues. Mr. Franz said topics suggested were: board member responsibilities, running affective meetings, financials, and team building and quality management.

Mr. Lau reported the BOD Governance Committee has completed a review of their board policies . Half of the policies were adopted at their last meeting and the remaining policies will be covered at their next meeting.

Mr. Lau said Julie Derry and Ingrid Avril have resigned from the BOD and they are currently advertising for applicants. He added there are two other members, whose terms will be up in December, who have not indicated whether they will remain on the board.

SPH Foundation

Ms. Berg-Forrester reported applications have been mailed to the employees of the hospital. They will be seeking membership from individuals and those joining by the end of the year will become a charter member. The fee is $25.00 for the year or $500.00 for a life time

membership. The first meeting will be held at 5:30 p.m. on October 21st, and will include election of officers. She mentioned an amendment to the by-laws was done in order to be in compliance with IRS mandates. Mr. Walpole added applications have also been mailed to the Chamber’s members.

Current Financial

Mr. Button said patient service revenue is down $521,000.00 below budget and expenses are down $244,000.00. He also wanted to point out that loss from operations, year to date, is $78,000.00, which is only $65,000.00 below budget. Mr. Button said the managers and staff are doing an excellent job of controlling expenses while the volume has been down. He said the loss was contributed primarily to inpatient revenue due to physicians being out of town for a significant period of time. The physicians have returned and the volume is coming back up. Mr. Button added they will provide a more detailed analyzes of how to read the financials after the new board members are on board.

Mr. Franz suggested deleting Item B, Authorization of Funds for Purchase of Botkin Property, under NEW BUSINESS, and discussing this under OLD BUSINESS. He said the SAB approved the purchase of the property but when the borough was preparing the ordinance to appropriate the funds they needed to identify a source for the funds to come from. Mr. Franz asked for a motion to state the funds were to come from the SAB retained earnings.

Mr. Green asked if there was any further discussion on this item. Ms. Woodworth asked if it would be favorable for the board to make a motion. Mr. Green felt it would be appropriate to show the approval of the board in having the Chairman explain the background to Ms. Martin and Mr. Moss, of the borough Assembly, and solicit them to enter the ordinance.

WOODWORTH/HILLAS MOVED FOR THE SERVICE AREA BOARD CHAIRMAN TO CONTACT OUR ASSEMBLY REPRESENTATIVES, MILLI MARTIN AND CHRIS MOSS, AND CONVEY TO THEM THE SUPPORT OF THE FEE AND REQUEST THEIR ASSISTANCE IN PRESENTING IT TO THE ASSEMBLY.

Mr. Lau mentioned in prior years the Retreat was mainly for BOD members, but when moving into the strategic planning process, the BOD and the SAB then started to work as a group. He said the BOD has chosen January 9th, 10th, and 11th for the next Retreat.

Ms. Byrd volunteered to represent the SAB in planning the agenda. Ms. Berg-Forrester also offered to help.

Mr. Franz said the contract will be awarded to RIM-KMD. The final hearing of the ordinance to appropriate the funds will be October 14th, with the awarding of the contract being done by resolution.

Approval of Denali Commission Bulk Oxygen System Grant

Mr. Franz said the hospital received a grant from the Denali Commission, which will save SPH $75,000.00 per year. The borough Grant Manager informed him the borough must have an ordinance to accept the money and appropriate it even though it was applied for through SPHI. They have requested a motion from the SAB recommending the Assembly accept the Denali Commission grant for $250,000.00 and appropriate the funds to SPH.

Mr. Green read the resolution commending Craig Chapman, Kenai Peninsula Borough Controller, for his assistance in the successful issuance of bonds for the SPH expansion.

Foundation Committee Meeting 10/14/03 3:00 p.m.

SPH Conference Room 2

SAB Governance Committee Meeting 10/14/03 4:00 p.m.

SPH Conference Room 2

BOD Finance Committee Meeting 10/21/03 12:00 p.m.

SPH Conference Room 1

Foundation Meeting 10/21/03 5:30 p.m.

SPH Conference Rooms

Regular BOD Meeting 10/22/03 6:00 p.m.

SPH Conference Rooms

Mr. Green reminded the members, next Tuesday, October 7th, is election day. Donna Anderson has filed as a write in candidate and Bettyann Steciw, who did not file in time due to a family emergency, will be appointed after the new board is seated.

Iris Douglass said she has learned a lot.

Doris Engle said they would like the hospital’s help, as much as possible, and wanted something done in LTC.

Elizabeth Johnson asked the members to keep in mind the population in the community is changing and, unfortunately, there will likely be more residents who will be suffering from some sort of dementia. She asked how long it might be before the hospital would have a dementia unit. Mr. Green said they are certainly sensitive to this topic, and it is on a list of considerations, but he was not sure on the timeframe. He mentioned, with the establishment of the foundation, they hope to gain some flexibility in being able to access funds from other sources.

Ms. Engle mentioned the Alaska Native Hospital reimburses the cost of becoming a CNA if the person will work as a CNA at the hospital for six months.

Mr. Button thanked Ms. Woodworth for all her help on the Finance Committee.

Ms. Byrd said she learned a lot when she attended the ASHNHA meeting on September 9th and thanked the hospital for sending her.

Mr. Hillas said he also attend the ASHNHA meeting and was encouraged by the attendance of several representatives from federal and state agencies. He added niche providers could hurt the hospital by doing MRI, CAT scans, and X-rays.

Ms. Woodworth reminded everyone to vote and thanked Ms. Anderson for being a write in candidate.

Ms. Berg-Forrester said she had planned to attend the ASHNHA meeting but had a conflict with taking some required continuing education classes. She thanked Ms. Woodworth for all her work on the Finance Committee and said she will be missed from every prospective.

Ms. Dentz echoed Ms. Berg-Forrester’s comments regarding Ms. Woodworth and added she felt Ms. Woodworth would be a good candidate for the BOD. She also thanked the visitors for attending the meeting this evening.

Mr. Green said he would especially like to thank Ms. Woodworth for all her support and backup when presenting the budget to the Assembly. He also thanked the members of the audience for attending and voicing the comments.