Minutes of The s12

MINUTES OF THE WORKING SESSION OF THE HEALTH SERVICES COST REVIEW COMMISSION December 5, 2001

The meeting was held under the authority of the State Government Article, Section 10- 501, et. seq. Chairman Hillier called the meeting to order at 9:00 A.M. at the Metro Executive Building, 4201 Patterson Avenue, Baltimore. Commissioners Down, Farley, Grosser, Lin and Troll were also in attendance. Robert Murray, Stephen Ports, Patrick Redmon, Dennis Phelps, Ellen Englert, Rodney Spangler, Valerie Shearer, Bill Kessler, Stephanie Sand, Myles Uszerowicz, Brian Jacque, Robert Thompson and Charlotte Thompson attended representing staff. Also attending was Stan Lustman, Commission Counsel. ITEM ONE

The Commission reviewed and approved the minutes of the November 7, 2001 Working and Executive Sessions and the November 21, 2001 Executive Session.

ITEM TWO

Robert B. Murray, Executive Director reviewed the Public Meeting Agenda.

ITEM THREE

The recommended fines $18,900 and $9,700 for the late submission of Monthly/Quarterly reports by Kessler Adventist were suspended for 24 months. The deadline for the previous fine imposed July 11, 2001 was extended to coincide with the date of this fine.

The recommended fine of $2,400 for the late submission of Annual/Audited Financial reports by Deaton was imposed.

The recommended fine of $13,300 for the late submission of the Special Audit Report by Taylor Manor was imposed.

The recommended fine of $1,200 for the late submission of their Trustee Disclosure by Mercy Medical Center was suspended for 24 months.

ITEM FOUR

Robert Murray, Executive Director presented a summary of the Full Rate Review for St. Agnes Hospital proceeding number 1740R.

Ken Bancroft, President and Chief Executive Officer, Rhonda Anderson, Chief Financial Officer and David Cohen of Cohen, Rutherford and Blum provided comments. St. Agnes stated that they have made several operational decisions that would assist them in minimizing their losses. They have sold a nursing home located in Ellicott City, Maryland as well as reorganized a Physician Practice. They are in agreement with the staff recommendation. Discussion with the Commission followed. Dr. Hal Cohen representing Carefirst provided comments. The Commission approved the staff recommendation. ITEM FIVE

Robert Murray, Executive Director presented a summary of the Permanent Rate Application for Prince Georges Medical Center proceeding 1750R. Phyllis Wingate-Jones, President, Winfield Kelley, Chief Executive Officer, and Noel Sorvino, Chief Financial Officer representing the hospital stated that they are in agreement with the staff recommendation. Discussion with the Commission followed. Dr. Hal Cohen representing Carefirst provided comments. The Commission approved the staff recommendation. Commissioner Grosser recused himself.

ITEM SIX

Robert Murray, Executive Director presented a summary of the Draft Report on the Financial Condition of Maryland Hospitals. Chris McKail, Senior Vice President of MAMSI and Rob Cohen representing Carefirst and Kaiser provided comments. Paul Sokolowski, Vice President of Finance for MHA, James Xinis, Chief Executive Officer for Calvert Memorial Hospital, Ronald Werthman, Chief Financial Officer for Johns Hopkins Health System, Thomas Mullen, Chief Executive Officer for Mercy Medical Center, Inc., Bob Cherncik for University of Maryland Medical Center and Eric Melchior, Chief Financial Officer for Greater Baltimore Medical Center provided comments on the report. No Commission action was necessary.

The meeting adjourned at 12:40 P.M. MINUTES OF THE EXECUTIVE SESSION OF THE HEALTH SERVICES COST REVIEW COMMISSION December 5, 2001

The meeting was held under the authority of the State Government Article, Section 10- 508.

Chairman Hillier called the meeting to order at 12:50 P.M. at the Metro Executive Building, 4201 Patterson Avenue, Baltimore. Commissioners Down, Farley, Grosser, Lin and Troll were also in attendance. Robert Murray, Patrick Redmon, Dennis Phelps, Ellen Englert, Rodney Spangler, Andy Udom, Valerie Shearer, Bill Kessler, and Stephanie Sand attended representing staff. Also attending were Stan Lustman, Commission Counsel.

ITEM ONE

Bill Kessler, Assistant Chief Audit and Compliance provided a summary of The Johns Hopkins Hospital Alternative Rate Agreements. Johns Hopkins Hospital representatives presented information on their alternative rate agreements.

ITEM TWO

Bill Kessler, Assistant Chief Audit and Compliance provided a summary of the Doctor’s Hospital Alternative Rate Agreement. Dennis Scanlon, Chief Financial Officer for Doctor’s Hospital provided information on their alternative rate agreement.

ITEM THREE

Robert Murray, Executive Director provided an update on the SAAC Program.

ITEM FOUR

Stan Lustman, Commission Counsel provided information on the Designated Interested Party status at the request of the Commissioners.

The meeting adjourned at 1:35 P.M.