Rough Transcript starting with Michael Honea (watch the video to hear exact wording) 

Honea: Just to give you a little background on each one of proposals here: On the spreadsheet the first one is the cancellation of the UPL program, the 1115 program as part of Baylor All Saints... back on August 1 we had an agreement with Baylor, we were ITTing on their behalf and they were actually paying for some of the services in the hospital, CMS had a problem with the way that was run and Baylor scrapped the program and basically gave us two weeks notice. So with that we have incurred the full expense all that has rolled back to us, that included the ER physicians payment, the MRI payment and the anasthesiologist payment and the senior care. This is representing pay the full bill on all of this, we were actually benefitting thru the UPL in prior arrangement. the 1115 revenue basically we haven't received the 2015 payment, the tentative date for that is October. The UC tool has gone out we have to have it sent back by Friday, at that point they'll evaluate it, we'll get our payment amount and who knows what from there, anticipated date is October. We're a year behind on this project and sometimes more than a year behind. They are now pulling data straight from the cost report each year so most of the tool is already populated so it's a little bit less. There's been a lot of problems with the tool from day one. .. trying to refine it... received  $34735 with a budget of 750,000. We expect to be paid 500,000 sometimes they break the payment in half. 

Harrison: Timeline for getting all of this money

Honea. Can't give you... UC payment will be around October. From there, the PIP any day now.  500,000 for decreased medicare volume, from 2013 cost report, once it's done we can file for the reimbursement, then Medicare has 180 days to respnd. PRB for 250,000 6 months to a year. PIP we're being paid off first quarter of 2015, waiting for second, they give you a lump sum payment back and then bi-weekly payment adjusted up. We're being paid an average of 25 less submissions. Medicare decreased volume, qualified us for program to reimburse 500k. April -correspondence from Medicare. BKD indicated turning about Novatoss (?) about lack of timeliness to get things done. Low volume incentage- Novatoss said they didn't receive but we have a stamped letter (pittney bowes) Can turn this in to a PRB (professional review board) 

Hankins. If you run into that issue where they say they didn't get it, to send it certified? 

Reynolds. It got lost in their mailroom, we sent it on time. 

Harrison: I sent a certified request a few weeks ago, it didn't come back, don't know where it went.

Hankins: Really. I don't think I've ever had that problem. 

Reynolds: We need some cash to operate on, we're asking you to authorize a $500,000 line of credit till we start getting some money from Medicare. ... There's dollars here, the first 2 is how we got where we got to, but there's significant cash coming in. $1.2 million that we are truly expecting to receive. ....

Harper:  Shouldn't the Budget and Finance committee look at this first. 

Reynolds: Probably We probably should have brought this to you first. 

Um. Yeah.

Harrison What's your timeline on this?

Reynolds. We have an interest payment to make on the 15. that will break us. Talked to interfirst and First Financial

Harper: So you're going to be broke by the 15th and didn't want to bring it to the Budget and Finance committee but the full board meeting, we had a budget and finance committee less than a week ago.

Reynolds. We should have brought that to you, we acknowledge that. 

Harper:  And you knew this. If you didn't know it, I don't what you're claiming

Reynolds: I don't have an explanation, our answer is, we kept thinking every day we'd get our PIP payment. But I brought it to you here, we had a meeting scheduled, so I dealt with Dr Burroughs, 

Parker. If we had the PIP, we woudln't be in all this problem by the 15th?

Reynolds: That's correct ... would give us a couple of weeks

Harper: At the Budget and Finance committee, she said we have 17 days cash on hand

HOnea: If we do, that's going to put us down to zero.

Harper: What I'm saying is you look at your bills, your schedule and how much money you got, you should know when you're going to run out of money

Reynolds: We should have brought it to you earlier. We should have. .. From our perspective, it's a game of Medicare. Not the first time this organization has had to do this because of lack of payment from our payors. We did it with the previous board, we've had to borrow money to make the IGT before because we have no cash reserves. None. 

Hankins. What's your anticipation that the budget and finance commitee would have said no.

Huh? Because THAT's a good reason not to tell the committee in charge of looking at the, er, budget and finances. Because there might possibly, who knows, been dissension? That's Ole Ron Hankins crystal ball and magic hat foretelling the future again. hah. Plus, have to wonder if he's making a comment because bypassing budget and finance wasn't just an oopsie accident but a conscious decision that even Ron Hankins knew about beforehand. 

Harper: I think we would look at it and try to figure out where the money is. Seems like if we have 17 days cash on hand and we knew this 6 days ago 

Burroughs -I think there's a lack of understanding, though. You don't realize how much money comes and goes in this organization in a day. We have 300,000 in a deposit and there might be a day when you paid  $400,000 in bills. 

How ridiculous. Does Dr Burroughs believe she is the only one that can understand business or basic accounting? Dr Burroughs, who is against actually looking at the details? Wee bit of arrogance there, eh? 

Harper: When you have a CEO and a CFO coming to you and you say we have this many days cash on hand, I expect them to have this many days cash on hand. 

Reynolds: It's a budget item for that day. It's not a cash flow statement, it's a balance sheet as of a certain day, these are what the accounts are. 

Parker: So the days of cash on hand that you're talking about are not normal all expenses?

Reynolds: That's just whatever day they print it.

And yet you'd think that Reynolds would include trends, especially since he KNEW they were running short. Also interesting that nobody STILL is bringing up the fact that Luminant is paying less money in taxes this next year.

Burroughs, and you realize we work with groups of people who pay us whenever they decide to. You can say this is what we're due and it should be paid 45 days but if they decide half of it they don't want to pay, they just don't pay. 

Yeah. That's the way business works. Go ask Comanche Peak. 

Parker: That's the cash on hand as of June? As of August 15, that wasn't it?

Reynolds: We don't know... My request is you authorize us to go to the 3 banks in town and see which ones are the best ones 

Hankins -I'll make that motion

Burroughs: I'll second it. 

Parker: We're going to have to do something

Harper: I think our debt ratio is already too high. I don't know how we can afford to go into any more debt. 

Burroughs. We can't afford not to. .. we can't keep the place open. 

Imagine if you ran your personal household budget like this. 

Harper: We can't keep providing all the services we're providing 

Burroughs: We need to collect a much higher tax rate... we need to collect a much higher tax rate. 

Harper: It can only go so high 

Burroughs: Well, that' s right

Harper: That's not going to save it. 

Burroughs: We're back to we have to build a reserve and we haven't. ... as a way for strategic planning 

Parker (unintelligible)

Burroughs: That's wonderful but you have to have the cash coming and going 

Harper: When is this going to be paid back

Reynolds: We had asked for 6 months 

Burroughs. It's a line of credit, it's not to hand over a milion dollars for us to spend it willy nilly. 

Harrison: And I'm assuming we wouldn't get the 500,000 first thing.. and in theory when the bills come in, we'd pay that back.

Reynolds. In theory

Harrison: In theory

Oh, okay. In theory. 

Parker. I certainly think we should have regular reports on that.

Parker voted tor this. Since Reynolds and possibly other board members acted to prevent this being brought up in a B&F meeting, what makes him think he'll get regular reports? 

Harrison: We have a motion and a second, any further discussion? Passed 5 to 1 with Paul voting negative 

Motion to adjourn