Present:  Directors  Heinisch, Kirby, Stromborg, Wilson, Daugherty, Tobias, Richter

Also Present: C. Anderson, P. Anderson, Scavotto, R. Bockman

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.        Management Report  – Operations

Financial statements for July and August results were reviewed with Scavotto presenting overall performance. The IPA reimbursement cuts contributed to the operating losses. Overall, hours worked are up over last year-to-date while census is stable. Work process also has been a factor. Changes have been made to bed management to free up Medicare beds and minimize the practice of holding beds while residents are on the Medicare unit. Additional work created by initiatives like Wellspring is being evaluated.

Scavotto reviewed the budget for next year and presented the rationale behind targeting an ADC of 184.
 
The development of the Alzheimer’s program was presented by C. Anderson and included the initial thinking on facility renovations.

4. The Board went into Executive Session at 8:05 am (motion Daugherty, second Stromborg) and emerged at 8:40 am (Motion Tobias, second Wilson). It was moved (Stromborg) and seconded (Wilson) that the Operating Board accept the proposal submitted by MPA to conduct a market demand analysis of senior living opportunities. Motion carried unanimously.
   
   
5. Next Meeting: November 13, 2002
   
   

Respectfully submitted,

C.Anderson
Recording Secretary