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Hospital Authority Board of Trustees and University Board of Trustees

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Hospital Authority Board of Trustees and University Board of Trustees AGENDA (REGULAR AND CONSENT) HOSPITAL AUTHORITY BOARD OF TRUSTEES AND UNIVERSITY BOARD OF TRUSTEES December 11, 2020 MEDICAL UNIVERSITY HOSPITAL AUTHORITY (MUHA) BOARD OF TRUSTEES REGULAR AGENDA December 11, 2020 101 Colcock Hall/Via Teleconference Members of the Board of Trustees Dr. James Lemon, Chairman Dr. Richard M. Christian, Jr. Mr. Charles Schulze, Vice‐Chairman Dr. Paul T. Davis Ms. Terri R. Barnes Dr. Donald R. Johnson II The Honorable James A. Battle, Jr. Ms. Barbara Johnson‐Williams Mr. William H. Bingham, Sr. Dr. G. Murrell Smith, Sr. Dr. W. Melvin Brown III Mr. Michael E. Stavrinakis Dr. Henry F. Butehorn III Thomas L. Stephenson, Esq. Dr. C. Guy Castles III Dr. Bartlett J. Witherspoon Trustees Emeriti Ms. Margaret M. Addison Dr. Charles B. Thomas, Jr. Mr. Allan E. Stalvey Dr. James E. Wiseman, Jr. Item 1. Call to Order .................................................................................................................. Dr. James Lemon Chairman Item 2. Roll Call ..................................................................................................................................... Jane Scutt Assistant Board Secretary Item 3. Date of Next Meeting – February 12, 2021 ............................................................................. Jane Scutt Assistant Board Secretary Item 4. Approval of Meeting Minutes of October 9, 2020 ........................................................ Dr. James Lemon Chairman Recommendations and Informational Report of the President: Dr. David Cole Item 5. General Informational Report of the President ................................................................. Dr. David Cole President Item 6. Other Business ................................................................................................................... Dr. David Cole President Authority Operations, Quality and Finance Committee: Dr. Murrell Smith, Chair Item 7. MUHA Status Report ................................................................................................... Dr. Patrick Cawley Chief Executive Officer, MUSC Health Item 8. Request for Certificate of Need (CON) ........................................................................ Dr. Patrick Cawley Chief Executive Officer, MUSC Health Approval is requested for the Medical University Hospital Authority to apply for a Certificate of Need Application for an outpatient vascular lab to be located in Charleston County. Item 9. MUHA Financial Report ....................................................................................................... Lisa Goodlett Chief Financial Officer, MUSC Health Item 10. Capital Reprioritization Request ......................................................................................... Lisa Goodlett Chief Financial Officer, MUSC Health Item 11. Legislative Update .......................................................................................................... Mark Sweatman Chief, Government Relations Item 12. MUSC Physicians Update ................................................................................................... Dr. Dirk Elston President, MUSC Physicians Item 13. Other Committee Business ........................................................................................... Dr. Murrell Smith Committee Chair MUHA and MUSC Physical Facilities Committee: Mr. Bill Bingham, Chair Item 14. Major Projects Status Update ........................................................................................... Tom Crawford Chief Operating Officer, MUSC Health Item 15. MUHA Project Charleston Public Works Easement for Approval .......................................... Brad Taylor Chief Facilities Officer, MUSC Item 16. MUSC Ehrhardt Street Tunnel Easement for Approval .......................................................... Brad Taylor Chief Facilities Officer, MUSC Item 17. Water Mitigation Planning (Part 2) ............................ Lisa Montgomery, EVP for Finance & Operations Brad Taylor, Chief Facilities Officer, MUSC Item 18. Other Committee Business ................................................................................................... Bill Bingham Committee Chair MUHA and MUSC Audit Committee: Mr. Tom Stephenson, Chair Item 19. KPMG Exit Conference ......................................................................................................... Jennifer Hall Senior Partner, KPMG Item 20. Strategic Risk Management Update ..................................................................................... Reece Smith Director, Strategic Risk Management Item 21. Report of the Office of Internal Audit .............................................................................. Susan Barnhart Director, Internal Audit Item 22. Other Committee Business ........................................................................................... Tom Stephenson Committee Chair Other Business for the Board of Trustees: Dr. James Lemon, Chair Item 23. Approval of Consent Agenda ........................................................................................ Dr. James Lemon Chairman Item 24. Executive Session .......................................................................................................... Dr. James Lemon Chairman Upon proper motion and vote, the Board may convene a closed session pursuant to SC Code Ann. §30‐4‐70. Although the Board will not vote on any items discussed in closed session, the Board may return to public session to vote on items discussed. Item 25. New Business for the Board of Trustees ....................................................................... Dr. James Lemon Chairman Item 26. Report from the Chairman ............................................................................................ Dr. James Lemon Chairman MUSC Health (excluding MUSCP) Interim Financial Statements October 31, 2020 Medical University Hospital Authority (MUHA) Statement of Revenues, Expenses and Changes in Net Assets Consolidated – All Markets 2 Charleston Market 3 - 6 - MUSC Shawn Jenkins Children's Hospital and Pearl Tourville Women's Pavilion Florence Market 7- 9 Lancaster Market 10 – 12 Statements of Net Position Consolidated – All Markets 14 Charleston Market 15 Management Comments - Charleston Market 16 Regional Health Network (RHN) Markets 17 Management Comments - RHN 18 MUHA FASB to GASB Report Consolidated – All Markets 20 MUSC Strategic Ventures (MSV and MHI, INC) Statement of Revenues, Expenses and Changes in Net Assets 22 - 24 Statement of Net Position 25 - 26 Mainsail Health Partners (Mainsail & Spinnaker) Statement of Revenues, Expenses and Changes in Net Assets 28 - 29 Statement of Net Position 30 - 31 Note: 1) During March 2020, MUSC Health went into emergency command structure in response to COVID19. MUHA has recognized CARES stimulus funding in FY2020 and FY2021 as non-operating revenue per GASB guidance. 2) In FY2018, the internal financial statement format was changed to a FASB basis report to appropriately match the income stream of state appropriations and expenses incurred in addition to a presentation format that matches HUD and the credit market expectations. Unaudited – For Management Use Medical University Hospital Authority - Consolidated Statement of Revenues, Expenses and Change in Net Position For the 4 Month Period Ending - October 31, 2020 Modified FASB Basis Current Month Fiscal Year To Date Actual Flex Budget Variance Var % Fixed Budget Actual Flex Budget Variance Var % Fixed Budget Operating Revenues: Net Patient Service Revenue $ 160,387,278 $ 165,317,711 $ (4,930,433) -2.98% $ 171,565,509 $ 624,180,949 $ 631,037,076 $ (6,856,127) -1.09% $ 652,736,521 DSH 4,299,450 4,260,734 38,716 0.91% 4,260,734 17,195,090 17,042,935 152,155 0.89% 17,042,935 Retail Pharmacy Revenue 20,718,512 21,073,171 (354,660) -1.68% 17,298,468 78,717,781 81,712,339 (2,994,558) -3.66% 68,179,990 Other Revenue 9,395,955 9,550,939 (154,984) -1.62% 9,550,939 38,062,233 32,892,758 5,169,475 15.72% 32,892,758 State Appropriations (18,051,246) 2,348,754 (20,400,000) -868.55% 2,348,754 9,145,018 9,395,018 (250,000) -2.66% 9,395,018 Total Operating Revenues $ 176,749,949 $ 202,551,309 $ (25,801,361) -12.74% $ 205,024,405 $ 767,301,071 $ 772,080,126 $ (4,779,055) -0.62% $ 780,247,222 Operating Expenses: Salaries Wages $ 53,066,850 54,937,476 (1,870,626) -3.41% 54,374,597 212,458,527 209,092,360 3,366,167 1.61% 212,417,001 Benefits 19,869,995 20,962,580 (1,092,585) -5.21% 20,668,320 80,492,220 79,976,298 515,921 0.65% 81,004,000 Pension Expense 5,297,401 5,300,157 (2,755) -0.05% 5,300,157 21,189,605 21,188,645 961 0.00% 21,188,645 Other Post Employment Benefits 1,629,659 1,629,659 - 0.00% 1,629,659 6,518,629 6,518,629 - 0.00% 6,518,629 Purchased Services 26,503,934 28,795,272 (2,291,338) -7.96% 28,762,051 105,741,914 107,910,045 (2,168,131) -2.01% 107,967,027 Physician Services 11,557,100 13,552,521 (1,995,420) -14.72% 13,552,521 47,264,486 51,259,825 (3,995,339) -7.79% 51,259,825 Pharmaceuticals 15,133,392 13,298,956 1,834,436 13.79% 12,457,571 58,916,673 45,264,933 13,651,740 30.16% 44,987,780 Retail Pharmaceuticals 9,678,163 7,582,141 2,096,021 27.64% 6,383,862 36,165,202 26,250,197 9,915,006 37.77% 22,583,507 Medical Supplies 27,193,284 23,577,524 3,615,761 15.34% 25,141,193 98,990,282 114,084,674 (15,094,392) -13.23% 115,073,272 COVID-19 Supplies 1,201,925 - 1,201,925 0.00% - 14,242,333 - 14,242,333 0.00% - Other Supplies 4,255,624 5,084,649 (829,026) -16.30% 5,064,747 17,378,726
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