Northfield Hospital Board Meeting Report
October 22, 2026
Location: Jefferson Road Clinic
All hospital executives present.
Consent Agenda: Bd minutes, Budget and Finance minutes, Community Relations minutes, Quality and Safety minutes. Quality and Performance Improvement Policy, Patient Rights Complainant and Grievance Policy, VAV Controller Replacement Project. Passed.
Reports
CEO report and presentation
No questions on Medical Staff files. Files accepted.
CEO read letter excerpt from recent ER patient that described positive experience with ER, noting especially the personable and professional staff. The letter named and thanked individual team members.
Recent full day site survey for certification of Cancer Care Center by outside visiting oncologist reported on. Visit went well. Hospital has good data on the center, which was reviewed by the visitor. Recertification is expected. Question re: whether there are different levels of certification? No—just yes or no to certification. Question re: “how do we tell these stories” about hospital successes? Related to the Cancer Center, probably a hospital magazine article about how we catch many cancers at stage 1, emphasizing screening and patients taking charge of their own health. Also noted: cancer care team has a combined 239 years of experience.
Review of financial performance goals. Rural Health Transformation funding has been approved by the state ($1.5 million). Will be invested in Health Finders, improvements in coding, chronic care management. Helps build a good foundation for next few years. Eligible for grants for 5 years but becomes more competitive as years progress.
Space planning is underway for facilities. Considering consolidating admin spaces to make more clinic space. Discussion of plan for long-term care space: considering whether an external partnership can be developed, e.g. a lease agreement with an outside provider, to use that space to fill an unmet need in the community. Question re: will a mental health facility be considered? Yes, if it’s the right partnership. Would be a long process to develop that partnership. Question re: what is the timeline on the rest of the facility analysis? Bd will get an update at the November retreat. Goal is to have general space usage plans in place by the end of the year?
Employee Engagement review: Hospital now has over 1000 employees (considering all positions—not just FTEs). Question re: how many has merger added? About 100 total. Not sure on FTE. Open enrollment is beginning for employees. Cost to employees is flat. About $500,000 in cost shifted to employer. Question re: average age of employee population? Health care skews younger. Hospital is seeing the impact of the MN family leave act because of younger population. Question re: understanding why provider costs go up 3-4% every year, but insurance costs go up 10%? Extended discussion on this without a clear answer. Insurance companies are limited in how much they can increase premiums. Some money goes to middle sector—like device manufacturers and other providers, not hospitals. MN hospital association is trying to make costs more visible, which is helpful. Desire to help public understand this expressed.
Other: Ad hoc Jefferson Rd transition committee is disbanded. New ENT has joined the team at .75 FTE. November retreat date and agenda discussed.
Financial Performance Strategic Priorities Updates/Presentation. Eric Guth
September highlights: Operating loss is as expected, both general and for Jefferson Road Clinic (JRC). Net revenue is on target. Inpatient days were down significantly in September, but outpatient was over budget. Clinic visits numbers were over budget; Question re what is expected for JRC going forward? Expect to at least double the September numbers (which were low because of transition).
Birth and surgery center numbers are down. Why are surgery numbers down? Hospital is down one ortho provider. Gyn elective procedures are down. Why are birth center numbers down? Only have 2 clinicians right now because of health absences and one transition out. As a result, put a pause on VBAC because of higher risks and we don’t have good clinician coverage. As clinic access is tough, patients go elsewhere. October looks better. Interviewing 2 OB/GYN candidates next week and doing recruiting. Question re when will we back at full staff? Not by January—it takes time. Target is July 2027. Currently paying a premium for some temporary providers.
September Financial outcomes: Nothing surprising. Expenses close to budget. Investments down because of fed increase in interest rates. Core operations loss is less than budgeted. We expect to break even with quarter four. JRC did bring in some revenue, but transition was a big expense. Cumulative loss is as expected with clinic purchase.
Question: are all providers up to full schedules? No, about 90% are. Trying to be respectful of difficulties with check-in under new system, etc. Everything from check-in to clinician first visit requires new chart, etc. Hope things will feel “normal” in a year.
Question: is phone wait time on hold getting better? We’re monitoring it, but still long waits. Have filled positions and added staff. It will improve.
Announcements/Questions?
Fred, Katie, and Rick will attend rural healthcare conference in January. Zander will likely attend National Healthcare conference in D.C. in the spring.
Board membership timing will shift to terms ending in the spring, so current member terms will extend an extra four months. One open slot on board and one position turning over (Fred). Rick Estenson will step in as chair.
Break
Closed Session and tour of building.
