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Brookings Health system
Board of Trustees
July 20, 2011
Board Members: Rob Jones, Chair, Al Baker, Vice-Chair, Zeno W. Wicks, III,
Secretary, Jim Booher, Arne Brown, Sandra Faltemier, Debra Johnston, Teresa
McKnight, Julie Whaley, ex-officios: John Kubal and Mike McClemans
Others: Kevin Coffey, Interim CEO, Dave Timpe, Accounting Consultant, Tammy
Hillestad, CNO, Phil Wagner, Project Manager and Deb Davis, recorder.
Jones called the special Hospital Board of Trustee Meeting to order at 6:05 p.m. There
were two agenda items for discussion.
OLD BUSINESS
Nursing Home
Wagner provided an update on the status on the programming of the skilled nursing
facility. The main focus of the discussion with architect Horty Elving centered on the
kitchen, laundry and storage space. Although the original plan was not to have a
preparation kitchen, at this point-in-time one will be included in the plans. This will be
an additional cost of approximately $300,000 and something else would need to be cut to
keep the total costs in line. Wagner noted the kitchen will be located in a spot, should the
final decision be made to not have the facility on site, the kitchen could easily be
removed from the floor plans without major redrawing of the building plans. It was
determined that an on-site main laundry was not a critical component. There was
discussion about laundry space in each of the neighborhoods, pros: therapeutic for the
residents, creates a home-like atmosphere; cons: infection control concern. Oxygen
needs of the residents were discussed. Currently 50% of the rooms have oxygen.
Johnston felt every room should have oxygen, especially in light of growing population,
she sees as a physician, needing oxygen. As of right now, each of the pods would have
one bariatric room. The question was asked if that is enough, in light of the growing
number of obese people. Coffey noted if more bariatric rooms are added, other amenities
would need to be cut or minimized. Storage was discussed. According to regulations,
there is to be a specific number of square feet per resident for storage. Rather than build
a basement, it is more cost effective to build a storage building. Coffey indicated the
architect can program three quality levels. A level two would be equal to or better than
what Brookings currently has. At this moment-in-time a rough estimate of total project
cost is $14.4 million. Coffey noted this number will change as decisions are made on
size of rooms, types of amenities and so forth. The discussion continued regarding
funding and what is the best direction. McKnight noted to replace the existing nursing
home is a huge outlay of capital which takes money away from doing the other priority
projects. There was no disagreement, but the reality is in order to move forward with the
plans for the entire campus, the current nursing home has to be relocated. Wagner was
excused at 7:03 p.m.
Page 2 of 2
NEW BUSINESS
Motion
At the June 9, 2011 Board meeting, a motion by Johnston, seconded by Wicks to direct
Coffey to submit the paperwork requesting each entity, the county and city for $5 Million
in cash. There was concern that requesting $10 Million was to excessive. A friendly
amendment made by Wicks, seconded by Brown, to reduce the amount of the request to
$4 Million from each entity for a total of $8 Million. There was unanimous approval of
the motion. Baker made a motion to rescind the motion. McKnight seconded. Booher
requested the question be called. Ayes: Baker, McKnight, Faltemier, Booher, Whaley
and Jones. Nays: Johnston and Wicks. Motion carried.
Coffey will still go to the County Commission meeting, not to request money, but to
provide information on the master campus plan.
Master Campus Plan
Coffey and Timpe will present the quarterly report to the City Council on July 26th.
Jones will make an inquiry to Mayor Reed as to who, besides Coffey and Timpe, should
be present at next Tuesday’s City Council meeting. Material was reviewed as to what the
presentation will consist of. Coffey compiled a handout that addressed reconciliation of
2012 cash and investments from 2008 to 2011 projections. By not starting the master
campus plan as originally proposed in 2008, cash grew. Even when factoring in a
sluggish economy, poor interest rates, a physician leaving the community, purchase of a
building, remodeling and expanding the emergency department/laboratory areas and
maintaining capital equipment expenditures, there was an increase of cash. Another
handout, cash flow projection for 2011 – 2015, was reviewed. As of right now 175 days
of cash on hand is maintained. This number is for an emergency such as a tornado
destroying the hospital, it would allow staff to remain employed and business could carry
on. Timpe recommended no less than 100 days of cash on hand be considered in the
projections. McKnight wanted to see committed dollars for future upcoming projects.
Baker felt the projections should be on the conservative side. Coffey pointed out when
you do projections you take the best information you have available at the time.
Unanticipated events such as the economy can play a big impact on the financial models
and it is important to be aware of changing conditions. He noted since the completion of
the emergency department and laboratory project, a steady increase is seen in patients
utilizing emergency department services. He believes this same increase will occur as
improvements and new buildings are completed.
Meeting concluded at 8:22 p.m.
Respectfully submitted,
_____________________________________
Zeno W. Wicks, III, Secretary