Present:  Directors  Heinisch, Kirby, Stromborg, Wilson, Daugherty, Tobias
Absent/Excused: Richter

Also Present: M. Green, P. Anderson, Scavotto

The meeting was called to order by Kirby at 7:00 am. A quorum was present. The meeting agenda was approved as submitted. Motion  Wilson, second Heinisch, unanimous.

1. Minutes: The minutes of the previous meeting were approved as submitted. Motion Daugherty second Tobias, unanimous.

2. Old Business:  None

3. New Business:
   
   

a. HIPAA/Corporate Compliance: Progress was reviewed against the work plans for both programs. DCRNC expects to be in compliance with all HIPAA requirements by the deadlines (April 2003 for the privacy standards; October 2003 for the transaction and code sets).  Michele Green informed the Board of an increase in pneumonia cases; an investigation is under way.

b.  Management Report  – Operations

Financial statements for May and JUne results were reviewed with Scavotto presenting overall performance. Year-to-date DCRNC is profitable at approximately $180k, which is ahead of last year. Census continues to hover around 180 and it is unlikely that we will reach 184 consistently given the current program. Issues of concern are with reimbursement: Township funding, IPA rate cuts and IPA payment delays. Health insurance costs will be increasing dramatically next year – on the order of 65 percent.

Scavotto reported that the outlook for July’s results is not good. Census has softened, as it normally does around a holiday period, and hospital activity has been lower than in the previous two months. Given the IPA rate cuts, a break-even performance would be the very best we could expect. Management is looking at operations to make adjustments but, realistically, the problems facing DCRNC are revenue rather than expense issues.

The development of the Alzheimer’s program is moving along as expected.

4. The Board went into Executive Session at 8:10 am (motion Daugherty, second Stromborg) and emerged at 8:35 am with no action being taken.
   
   
5. Next Meeting: September 18, 2002
   
   

Respectfully submitted,
 

___________________
Michael Scavotto
Recording Secretary