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February 26, 2018
Minutes - Valley Board of Trustees
Valley Board of Trustees
MINUTES
February 26, 2018
Board Members Present
Erin Aboudara, Lisa Brandenburg, Bernie Dochnahl, Barbara Drennen (phone), Peter Evans (phone), Jim Griggs, Gary Kohlwes, MikeMiller, Donna Russell, Tammy Sleeter, MD
Board Members Absent
Vicki Orrico, Julia Patterson, Lawton Montgomery
Others Present
Theresa Braungardt, Jeannine Grinnell, Staci Lyons, Katina Maier, Wayne Manuel,Matt Mulder,MD,Hiroshi Nakano, Julie Osgood, Jamie Park, MD, Kalen Privatsky, Rich Roodman, David Smith
Recorder
Kathryn Holland
1. CALL TO ORDER
Donna Russell called the meeting to order at 1:45 p.m.
2. VOICE OF THE PATIENT
Theresa Braungardt shared a heartfelt letter from a patient’s wife regarding the exceptional care her husband received from Dr. Mukherjee and many others at Valley during his experience with kidney issues until the end of hisjourney in late 2017.
3. consent agenda and action items
MOTION: Mike Miller moved to approve the consent agenda and Gary Kohlwesseconded the motion. The items moved for adoption were:
- Minutes of January 23, 2018
- Financial Vouchers/Warrants/Pay Apps
- Surplus Property ResolutionNo. 075
The motion carried,10-0.
4. EDUCATION
Wayne Manuel introduced an extensive presentation entitled “Improving the Health of Our Own Covered Lives”. Additional presenters were Katina Maier, Staci Lyons, Julie Osgood, and Hiroshi Nakano.
This process began in 2014 with the care transformation focus on population health. In 2016, Board member, Julia Patterson, recommended leveraging the experience of King County in addition to an Estes Park presenter recommending that we learn how to compete in a value-based world with our own self-insured health plans. Three key pieces of the strategy involve health and wellness, benefits design and high-quality care.
Katina Maier, Vice President of Human Resources, provided an overview of the benefits plan and annual health plan costs with a move to the Choice Plan in January 2017, prescription plan changes, and three key target areas for improving plan performance including a wellness program and portal.
Next Staci Lyons, Operations Manager of the Lifestyle Medicine Center, implemented the Employee Wellness Program in March 2017, which involved designing, launching and managing the Wellness Portal. The intent of the portal provided an avenue for employees to earn their way to a zero-dollar premium. Highlights of Lifestyle Medicine offer pre-surgical health optimization and post-surgical rehab, disease management and prevention programs, and prescribed fitness programs. Lifestyle Medicinestarted with just two providers and is now at 12.
Julie Osgood, Vice President for Clinic Operations, briefly reported on the concept of “Clinic of the Future” offering biometric screening and more digital activity tracking and engagement options, expansion to include spouse participation, to more closely integrate with EPIC, expand Lifestyle Medicine services, and increase access and utilization for employees and adult dependents.
Hiroshi Nakano, Vice President of Value Based Initiatives, discussed the market opportunities for Valley, proposing a proven bundle of services to small and large self-funded employers, expansive networking relationships with UW Medicine/Multicare CIN and TPA, and Alliance, thus pooling the risk with other employers to increase risk pool size.
Rich Roodman added that by leveraging EPIC, primary care doctors, physical therapists and physiologists, Valley could potentially reduce its expenses for employee/dependent orthopedic/spine problems, and in turn possibly develop a program that could be attractive and beneficial to Valley’s potential JV partner and the market in general. This could be a niche product that could be attractive to the UW Medicine CIN.
There was further discussion and the report closed with a question and answer period.
5. COMMITTEE REPORTS
Executive Committee
Donna Russell reported on the combined Executive/Compensation Committee meetings. In the Executive Committee, the need for a Nominating Committee meeting was announced and scheduled for February 26, the purpose of which was to select new officers for the positions of President and Vice President. Statements of Interest and Qualifications/Expectations for these positions will be mailed out shortly and will be reviewed at the next Nominating Committee, date to be determined.
Ms. Russell also reported that the Compensation Committee met and reviewed the progress on the current Pillar Goals and performance metrics,stating that five of 11 goals have currently been met. Additional Compensation Committee meetings will be scheduled over the next several months, which will include reviewing the FY19 UW Medicine Patients Are First goals that are under development now. The Compensation Committee also reviewed compensation for the Senior Vice Presidents, including the replacement for Paul Larson who retired.
Finance, Facilities & Audit Committee
Mike Miller provided a recap of the FF&A meeting, including a summary of the January
financials. Total operating revenue was $56Mwith a $1.7M positive variance. Total expenses for salary and benefits was $1M under budget. Total expenses were slight above budget at $326,000. Income from operations was $1M vs $364,000 loss for $1.4M ahead of budget. Non-operating income was $489,000 above budget. Net income for January was $1.3M vs a budget of $445,000 for slightly over $900,000 positive variance. Net income YTD $14.7M vs budgeted loss of $2.2M for $17M ahead of budget for first 7 months of fiscal year. Cash on hand was 107 days, with the goal to achieve 120 daysby end of June, and A/R’s were at 47 days. Reimbursements from real estate venture partnerships are expected by the end of June. Patient mix, Medicare at 38%, Medicaid at 20.5%, commercial at 38.5%.
Joint Conference Committee
Bernie Dochnahl provided an update regarding the February Joint Conference Committee meeting. Credentials and monthly Quality dashboardwere reviewed, and Dr. Park gave a report on the current Quality Structure from the Medical Executive Committee to Quality Improvement Committee, Professional Performance Committee and Multi-Specialty Peer Review Committee. The purpose of the structure is to continuously improve upon current methodology.
6. INFORMATION REPORTS
UW Medicine Update:
Lisa Brandenburg reported on several system level initiatives including clinic growth and strategic service line planning comprising a recently-approved mother/baby strategic service line plan focused on increasing deliveries across the system as well as services for high risk mothers by adding more OB providers in the community, adding more maternal fetal medicine physicians, and an extensive remodel of the childbirth facility at Northwest Hospital.
Ms. Brandenburg continued that ECG is providing a system-wide review for market opportunities in neurosciences. Theyare halfway through their engagement and noted that Valley is also participating in this endeavor. Dr. Mulder added that Valley is very involved in the NSI review and the draft recommendation fits well with Valley’s future position.
Ms. Brandenburg reported a successful open enrollment with the Boeing ACN.
Budget planning is underway regarding financial improvement and transformation and they are reviewing financially challenged areas and have engaged outside consultants and others, including Valley, to seek input and review of benchmark data related to areas such as supply costs, labor, and inpatient nursing. Huron has agreed to review system access in the UW Medicine call center and clinics for areas of improvement. The consultants will report to Ms. Brandenburg and the CFO.
Administrative Update:
Rich Roodman summarized various areas reported on the January Operational Update.
He briefly updated the Board concerning construction of the parking garage and an additional valet station to aid in Valley’s campus parking crunch, the status of a potential joint venture with a group of physicians as well as the groundbreaking ceremony for the new Medical Office Building. Mr. Roodman also noted that at the February 15 Renton Community Foundation CELEBRATE! Event, Board Trustees Bernie Dochnahl and Gary Kohlwes’ were honored for their outstanding community contributions.
7. OLD/NEW BUSINESS
Chair of the Board:
Donna Russell reminded the Board that the 2018 Service Awards Gala is scheduled March 15, the March 19 Board meeting education segment will address various presentations regarding precision medicine, and briefly discussed the upcoming Board Education Retreat.
8. ADJOURNMENT
The meeting adjourned at 3:36p.m.
Respectfully submitted,
Kathryn Holland
Executive Assistant to the CEO
and Board of Trustees
Valley Medical Center
All reports and presentations reviewed by this committee were in draft format, unless otherwise noted in these minutes.