Northfield Hospital and Clinics Board Meeting Observer Report from May 22, 2025
l. Executive Summary
ll. Call to Order
lll.Regular and Consent Agenda
lV. Reports
- Hospital Chief of Staff Report (Jennifer Fischer, MD Chief of Staff)
No concerns
- New Vice President of Staff recommendation (Jennifer Fischer)
Dr. Stephanie Erickson is stepping away from this recently appointed role, and Dr. Ellie
Cohen will be taking over as Vice President.
V. Presentations/Discussion/Action Items
- Board Membership Update (Michael Hemesath, Board Chair)
Robert Morrison is moving to Lakeville so can no longer serve on the Board. He was the Vice Chair of the board and now that position will move to Rick Estenson. Katie Lane will serve on the Hospital Foundation Board in his place. The Board can operate with 7 board members but has been having 9 members. One slot is now open and it is up to the Mayor to appoint a new member. Four people were suggested and all turned it down, so there is still an opening for someone that would be a good fit.
- Facility Capital Plan (Eric Guth, CFO)
In 2023 Kraus-Anderson did a full facility assessment of the current building. It is reaching a critical age for some repairs. The biggest needs are the roof, plumbing, HVAC, and Electrical. Last year the water heaters were replaced. A request was made to start replacing the VAV Controllers (controls the amount of air conditioning delivered to specific zones in the hospital) over 4 years– 25% each year. The Board approved the request.
VI. Executive and Committee Reports
- CEO Report (Zander Abbott, President and CEO)
This is the last meeting for Tammy Hayes who has served the Hospital for 40 years as a nurse, and 17 years as the Chief Nursing Executive. She will be retiring.
There is much concern about state and federal policy legislation regarding Medicare and Medicaid. Northfield has a policy of treating everyone in the ER regardless of ability to pay. 20% of our Medicaid dollars are for children under the age of 18. Medicaid payments amount to about 12% of the hospital’s gross revenue. Legislation is potentially going to reduce eligibility for Medicaid, limit the benefits, further reduce Medicaid underpayment. This will all have a big impact on health care and rural health care in particular. Northfield is in a better position at least in the short term than many rural hospitals.
The NH+C President’s Council was recently launched to oversee strategic priorities. Lots of information online about this and more data next month.
- Financial Report (Eric Guth, CFO)
The hospital is on track to meet the budget goals by the end of the year.
- Verbal Governance and Planning Committee Report (Michael Hemesath)
The next Board meeting will be June 26th, the July Board meeting will be moved to July 17th, and the August meeting will be on August 28th.
- Verbal Community Relations Committee Report (Crystal Mulvihill)
This committee met with the county and talked about county priorities and possible community partners (such as HCI, CAC and others).
- Verbal Budget and Finance Committee Report (Michael Hemesath)
They looked at the financial holdings of the hospital and looked at ways to adjust the balance between stocks, equity, fixed assets and cash on hand.
At this point, a Closed Session began.
Respectfully submitted by observer Anne Larson
