HHC Board Meeting Summary - October 22, 2025
HHC Board Meeting Summary - October 22, 2025
The Health and Hospital Corporation (HHC) Board of Trustees convened on October 22, 2025, to discuss operational updates, public bids, and strategic financial matters. The meeting opened with a prayer emphasizing community inclusivity. The board unanimously approved the consent agenda, authorized three new construction contracts, and terminated a specific long-term care lease while outlining plans for future lease negotiations with Omega. Significant progress was reported on the BABs bond refinancing, which eliminated subsidy risk, and the presentation of the annual strategic plan was scheduled for the next meeting.
Consent Calendar
- The board unanimously approved the consent agenda via roll call vote (6-0), including:
- Board minutes from September 16, 2025.
- Treasurer and CFO report for September 2025 cash disbursements.
- Medical staff appointments, reappointments, and privilege changes.
- Staff policies: 700-20, 700-104, 700-123, 700-134, and 700-156.
- Pediatrics clinical privilege form.
Public Comments & Testimony
- No members of the public or external advocates signed up to speak; no public comment was recorded.
Discussion Items
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Public Bids and Contract Authorizations:
- Brazil Pavilion Curtain Wall Replacement: Mr. Pagan presented the bidding process where FA Wilhelm Construction was identified as the lowest responsible bidder. The board voted to contract FA Wilhelm for $360,000. Supplier diversity goals (15% MBE, 8% WBE, 3% VBE, 1% DOBE) were met.
- Hospital Flooring Replacement: The board approved a contract with Diversified Pro LLC for flooring replacement on the first and eighth floors at a cost of $609,270. Supplier diversity goals were similarly addressed.
- Starbucks Renovation: The board approved Rose Construction for the renovation of the Starbucks location (per 10-year license requirements) at a cost of $297,171. Trustee Du Set inquired about the timeline, which staff confirmed would be 110 days, correcting a previous documentation omission.
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Resolution 5-20-25 (Termination of Long-Term Care Lease):
- CEO Paul Babcock presented the resolution to terminate a lease with landlord Rob New for the West Bend facility, noting that historical attempts to establish a master lease with this landlord were unsuccessful. The board voted 6-0 to approve.
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Strategic Lease Negotiation with Omega:
- CEO Paul Babcock explained that while the West Bend lease was terminated, the board is exploring a 10-year extension with Omega, HHC's largest landlord owning 32 facilities. Babcock stated that extending the lease could allow for bed re-introduction to avoid occupancy penalties and facilitate capital investment. He noted this discussion is separate from the West Bend termination, framing it as a strategic move to ensure revenue sustainability.
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Financial Updates (BABS Bonds & Budget):
- CFO James Simpson reported the BABS bond refinancing was successful, receiving orders totaling $1.9 billion from 45 investors at an effective borrowing cost of 3.62%. This deal is projected to save $33.1 million in cash flow between 2026 and 2040 and eliminates risk associated with Billed America bond subsidies. Closing is scheduled for November 18, 2025.
- General fund projections show a projected fund balance decrease of $20.8 million by year-end, a slight improvement from the previous projection of $23.2 million due to accurate revenue plug-ins. Staff noted that while the loss of HCI funding and IGT expenses exceeded the budget, the outcome is better than initially forecasted.
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Departmental Reports:
- Internal Audit: The committee approved seven proposed audits for year one of the internal audit plan.
- Public Health: Marion County Public Health Department reported on an upcoming tabletop exercise for family assistance plans, a research study on the Fresh Bucks program with Harvard researchers, and full compliance accreditation for the diabetes self-management education program.
- Eskenazi Health (Safety): Dr. Earlson reported on hospital safety, citing that 40% of nursing staff reported increased violence in national surveys. Measures discussed included enhanced security staffing, metal detection, 2,200 panic buttons, 837 security cameras, and VAID training (Awareness, Vigilance, Avoidance, Defense, Escape) completed for over 3,500 staff members.
- Quality Committee: Dr. Harris reported on hip and knee programs, noting superior functional assessment outcomes compared to national data. CMS quality measures currently place HHC at three stars, with an objective to regain four-star status.
- Mental Health: Dr. Overly reported a state survey with no deficiencies for the Opioid Treatment Program and the successful hosting of the first John and Kathy Ackerman Symposia for dual diagnosis care.
- IEMS: Chuck Ford reported 116,588 911 calls responded to (up 2.5%), successful reaccreditation with a projected five-year certification, and the arrival of 43 new recruits graduating October 31.
Key Outcomes
- Approved Consent Agenda: 6-0 vote passed.
- Contract Awards:
- FA Wilhelm Construction: $360,000 for Brazil Pavilion Curtain Wall.
- Diversified Pro LLC: $609,270 for Hospital Flooring.
- Rose Construction: $297,171 for Starbucks Renovation.
- Resolution 5-20-25: Approved to terminate lease with Rob New (West Bend facility).
- Next Steps:
- CEO Babcock will bring a resolution next month to negotiate a 10-year lease extension with Omega.
- The board will vote to approve the Strategic Plan at the November 18, 2025 meeting.
- Board review of Resolution 6-2025 (Investment Policy Annual Review) scheduled for November.
- Upcoming RFPs for grant management software, dental practice management, SAP Cloud migration, and Millersville Road renovation to be presented in November.
Meeting Transcript
Alright, it's uh one after two uh and uh our uh Reverend uh Diane Shircliffe is with us, and would you open us in uh in a word of prayer? So this morning I'm gonna tell you a little bit of a story. Um I was walking through the emergency department the other day when I ran across Francine and she was absolutely thriving. So when I asked how it was that she could be doing so well in this environment, a physician offered that she was cared for by those who love her. She takes breaks regularly to soak up sunshine and be in a less stressful environment. Now I had to know more. So I asked about her background. Francine, as she is known now, was found in pretty bad shape. She came in with a patient looking dehydrated and sad. The staff took it upon themselves to care for her, give her water, food, and some kind words. They did not need to do this. She was not a patient, she was not a family member, but she came through our doors, and at that point she became part of the community. And when you're part of the community, sometimes you care for those in need, and sometimes you are the one in need. No one asked why she was the way she was. They simply treated her kindly. But we are also a community that cares for the city and is there for the neighbors who need help in the moment, whether that requires getting to them in an emergency or being here to receive them, being a presence at school, being a resource in the neighborhood. This community helps where we are needed, doing the things that are required, and then some. We are not perfect, but we do our best to build others up to help them learn to help themselves, to be a listening ear, the one with a glass of water, and some dirt. A beautiful flowering, vining plant with pink blooms. Don't ask me what kind I can kill plastic, so just don't even go there. Francine came into the emergency department writing in a patient's pants pocket. She was unexpected, and someone saw her need and her potential. And they acted in her best interest. So let us take a moment to pause and reflect on Francine. But she'll be back, and she will remain a steady reminder that difficulty does not mean defeat, that the unexpected brings its own potential, and that thriving takes community. Today, may your conversations carry the spirit of Francine forward into all the facets of HHC business, into the communities of Indianapolis, and into the lives of our neighbors. Thank you, Reverend Chair. With that, I will uh I do the uh uh call our uh took to order and uh the roll call vote uh vice chairperson uh drummer present uh trustee Du Set Trustee Dr. Fish present trustee Hannafee here Trustee Horn Uh do we have Trustee O'Brien? No, okay, he's not with us today. Thank you. Um and uh I'm I'm uh trustee Lazard that you're the board. Um so with that uh the consent agenda consists of our board minutes from September 16, 2025, the uh treasurer and CFO report uh for September 2025 cash disbursements, the medical staff appointments, reappointments, and changes to privileges, um a number of staff policies, uh 700-20, 700-104, 700-123, 700-134, and 700-156, as well as our uh pediatrics uh clinical privilege form. Is there a motion to approve the consent agenda? Mr. Chair, I move that we um approve the consent agenda. It's been motioned by trustee uh vice chairperson drummer. Is there a sec is there uh all in favor? I'll do a roll call vote. I guess it needs a second. Sorry, seconded by trustee horn, sorry. Um please say yes to vote positively or no to vote negatively. Uh uh Vice Chairperson Drummer. Yes, Trustee Dusett, yes, trustee Dr. Fish, yes, trustee Hannafee, yes, trustee Horn, yes, Trustee Lazard votes yes. Uh motion carries uh uh 601. All right, that takes us to uh next item on our agenda are our public bids, and I'd like to introduce uh uh Fredo and is it Pagan? Yes, sir. And uh what we're going to do is uh uh once uh uh we uh uh there'll be a motion to authorize for staff to enter into a contract, there'll be a second, and then I'll ask Mr. Pagan to kind of give us a summary of of the uh of the public bids uh before we uh go into questions and uh ask into a vote.
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