Columbus, Georgia

HOSPITAL AUTHORITY OF COLUMBUS





MINUTES OF MEETING



OF THE



HOSPITAL AUTHORITY OF COLUMBUS, GEORGIA



January 29, 2002



A regular meeting of the Hospital Authority of Columbus, Georgia was

held at 11:00 a.m. on Tuesday, January 29, 2002. The meeting was held at

Muscogee Manor Center. A notice was mailed to each member. A copy of the

notice was posted more than 24 hours before the meeting on the door at the

normal place of the meeting at Muscogee Manor on Monday, January 28, 2002.

Present at the meeting were Col. Willie Davis, Donzy O?Dell, Mae Washington,

Dr. Emma Hunter, Dan Thomson, and James Webster. Harvey Phelps and Laverne

Jackson were absent and excused because they were out of town. Absent and

excused was Seth Harp because he was serving in the legislature. Absent was

Chuck McDaniel.

Also present at this meeting was Kenneth M. Henson, Jr., Secretary and

attorney; Frank Morast, President; and Hill Fort, Administrator.

Col. Willie Davis presided in the absence of Chairman Seth Harp and

welcomed everyone to the meeting. He thanked Frank Morast for the excellent

job he did organizing and cooking at the barbecue over Christmas. James

Webster opened with a prayer.

On motion of James Webster with a second by Mae Washington, the minutes

of the November 27, 2001 meeting were unanimously approved.

Frank Morast gave the President?s report as follows:

PRESIDENT?S REPORT

1. Frank confirmed that the barbecue and holiday hams for the employee was a

complete success. All the employees and staff expressed their thanks and he

wanted to thank the Board.

2. Frank has been actively soliciting bids from contractors for the sprinkler,

ceiling, and lights. He has good bids on the sprinkler and the ceiling. He

needs additional bids on replacing the exposed lights with more energy

efficient recessed lights.

3. Frank reported that he is looking at the possibility of repaying the current

bonds and refinancing a new bond issue to finance some of the additional work

that needs to be done. The HVAC on some buildings need to be replaced. There

are some roof repairs and room renovations needed.

4. Frank reported that the Hasty / Trout suit was voluntarily dismissed. It

can re-filed within six months. Another suit has been filed arising out of

another patient who ultimately died of other causes who had bed sores.

5. On December 18, 2001, the surveyor came to investigate a complaint.

Muscogee Manor had previously responded to the family. However, they were not

satisfied and complained to the State of Georgia. The surveyor came and

investigated the complaint. The surveyor concluded that the complaint was

unfounded.

6. Frank reported that the Assistant Director of Nursing, Denise Hawkins,

resigned. She is currently using her sick and vacation. She was leaving on

good terms. She will be missed. The position will not be filled at this

time. Once the next survey is completed, Hill and Frank will get together with

the Director of Nursing and determine if this position needs to be filled or if

there are other ways to handle the responsibilities.

7. Frank reported that he and Hill went to the Georgia Nursing Home Association

meeting and went to several seminars.

8. On June 1, 2002, the State of Georgia will go to a case mix system. This

will probably result in the reimbursement rate being reduced by approximately

$3 per day. The case mix system will be an opportunity for Muscogee Manor to

focus on new procedures and changes. They will have other bonuses and methods

which may reduce losses.

9. Muscogee Manor will probably receive revenue maximization this year.

Unfortunately, this may not occur next year.

10. Frank reported that the new personnel rules had been drafted. He will give

a copy to Ken Henson, Jr. and the Personnel Committee for their review.

11. The statistical report is up in almost every category in December, 2001.

Occupancy at Cobis is up at 25. Intensity at Muscogee Manor remains above 25.

This entitles Muscogee Manor to a bonus.



STATISTICAL REPORT



For November, 201, occupancy at Muscogee Manor was 92.75. Medicaid was

80.84%. Medicare was 6.21%. Private census was 12.95%. Intensity was 25.82.

Employment in full-time equivalents was 219.07. Occupancy at Cobis was 24.

Employment in full-time equivalents was 13.94. Average occupancy was 22.09.

For December, 2001, occupancy at Muscogee Manor was 94.3. Medicaid was

79.65%. Medicare was 6.80%. Private census was 13.55%. Intensity was 26.85.

Employment in full-time equivalents was 219.12. Occupancy at Cobis was 24.

Employment in full-time equivalents was 13.35. Average occupancy was 22.47.



FINANCIAL REPORT



For November, 2001, Muscogee Manor?s revenue was $784,370. Operating

expenses were $757,433. There was a net profit of $26,937. Net cash flow was

$41,465.

For November, 2001, Cobis had operating revenue of $35,771 with

operating expenses of $69,958. Cobis had a net income loss of ($34,426). Net

cash flow was ($34,426).

For December, 2001, Muscogee Manor?s revenue was $822,493. Operating

expenses were $71,249. There was a net profit of $51,243. Net cash flow was

$65,771.

For December, 2001, Cobis had operating revenue of $38,218 with

operating expenses of $71,181. Cobis had a net income loss of ($32,963). Net

cash flow was ($33,203).

Next year?s budget will be hard to plan with the new case mix system

beginning in July, 2002.

The next meeting will be on February 26, 2002.

There being no further business, the meeting was adjourned.





_____/s/_______________________

KENNETH M. HENSON, JR.

Secretary



_______________________________

SETH HARP

Chairman