Health & Hospital Corporation Board Meeting – February 18, 2026

The Health and Hospital Corporation (HHC) Board of Trustees met on Tuesday, February 18, 2026, at approximately 8:00 PM EST. The meeting opened with a moment of silence in remembrance of Beech Grove Police Officer Brian Elliott, who died in the line of duty the previous evening. The board considered multiple resolutions, including the establishment of a police department, approval of a SAP cloud migration contract, and updates on trauma center verification, standing committees, and a new board nomination. Reports were received from the President and CEO, CFO, Chief Compliance Officer, and leaders of Eskenazi Health, Marion County Public Health Department, Sandra Eskenazi Mental Health Center, Indianapolis EMS, Long-Term Care, and the HHC Foundation. All votes were unanimous among present members with one abstention and one absence noted.

Consent Calendar

• The consent agenda, including board minutes from January 12, 2026, the treasurer and CFO report for December 2025 and January 2026 cash disbursements, clinical privilege forms, medical staff appointments, and medical staff policies, was approved unanimously (6-0-1, Trustee Du Set absent).

Public Comments & Testimony

• No members of the public were signed up to speak.

SAP Cloud Migration Contract

• Scott Morris, Corporate Chief Information Officer, presented a resolution to authorize a contract with V3 IT for migrating SAP to the cloud, citing the vendor’s lower price and a 23% participation from local and diverse vendors (8% WBE, remainder MBE). The migration is required by 2028 and will enable better AI tools and analytics. The item was previously reviewed by the Finance and External Audit Committee. Motion by Trustee O’Brien, seconded by Trustee Dr. Fish.
• Vote: Approved 5-0-2 (Trustee Drummer abstained; Trustee Du Set absent). Trustee Drummer stated she was abstaining.

Establishment of a Police Department

• President and CEO Paul Babcock explained that Marion County Sheriff had withdrawn special deputy powers, requiring HHC to create its own police force to protect people and assets. Director of Security Dan Wilhelm detailed the timeline: 32 officers would be sworn in the next day (February 19), and the remaining 53 on April 15, before the loss of special deputy authority on April 16. All officers are currently certified and will complete a 40-hour pre-basic class. Motion by Trustee Hannafee, seconded by Vice Chairperson Drummer.
• Vote: Approved 6-0-1 (all present members voting yes; Trustee Du Set absent). Vice Chairperson Drummer expressed strong support, stating the move was “well overdue” and that the organization was previously “held hostage” by another municipality.

Establishment of Standing Committees

• The board approved a resolution to establish nine standing committees: Compliance and Internal Audit, Cultural Excellence, Eskenazi Health, Finance and External Audit, Long-Term Care, Nominating, Public Health, Quality, and Strategic Plan. Motion by Trustee Hannafee, seconded by Vice Chairperson Drummer.
• Vote: Approved 6-0-1 (unanimous among present).

Maintenance of Level One Trauma Center Status

• Dr. Stratton, Chief of Trauma Services, and Sidney Doyle, Trauma Program Manager, presented the resolution to maintain verified Level One trauma center status at Eskenazi Health. The center has been verified 12 times without deficiencies since the early 1990s. Dr. Stratton noted that the center treated two police officers wounded the previous night, one fatally, and that the other officer was discharged hours before the meeting. He also cited injury as the leading cause of death for ages 1-45 and the 15-year life expectancy gap between downtown Indianapolis and suburbs. Motion by Trustee Hannafee, seconded.
• Vote: Approved 6-0-1.

Nomination to Sandra Eskenazi Mental Health Center Advisory Board

• Dr. Overly nominated David Hudson, Chapter Administrator for NAMI Greater Indianapolis and a veteran, to the advisory board. His biography was included in meeting materials. Motion by outgoing advisory board member, seconded.
• Vote: Approved 6-0-1. David Hudson is now a member.

Reports

President and CEO Report (Paul Babcock)

• Announced a forthcoming debt issuance during budget season, required under a recent state law change. Committed to bringing a project list to the board.
• Reported that construction projects–public health lab, IES headquarters, Hasbrook renovation, new security depot, and Medic 10 bay–are on time and on budget. An IEMS beam signing event will be scheduled.
• Negotiations to extend lease with Omega and potentially add three new facilities are on track, with financial analysis justifying the additions.
• Strategic plan town hall meetings will begin the following week to roll out KPIs and metrics.
• In March, an update on state legislative impacts on the organization will be provided.

Treasurer and Finance Committee Report (James Simpson, Interim CFO)

• The general fund budgetary statement through December 31, 2025, showed a decrease in fund balance of $32.7 million, driven by unfavorable tax revenues ($25.4 million loss due to HCI), IGT payments ($14 million unfavorable), and grant revenues ($12 million unfavorable). These were partially offset by favorable headquarters revenue ($7.2 million) and a favorable expenditure position ($13.9 million).
• An additional support payment of $30 million was transferred to Eskenazi Health in December 2025, increasing days cash on hand by approximately 10 days and keeping projections above the 45-day minimum through 2026.
• The Finance and External Audit Committee met at 10 AM. Items included approval of prior meeting minutes, the SAP Cloud Migration RFP (already approved), audit planning communication from Mazars, and review of unaudited financial statements. The committee requested a three-year review of patient revenue, allowance for bad debt, and payer mix.

Compliance Work Plan (Lisa Taylor, Chief Compliance Officer)

• Presented the 2026 proposed compliance audit plan, based on a risk assessment completed in 2025. The assessment used 690 data points, over 100 interviews and focus groups, and surveys across the organization. The top 20 risks were identified and categorized under health outcomes, community health, access and growth, and sustainability. The plan includes 20 focused activities and special projects. Chairman Lazard endorsed the plan, noting positive feedback from the previous compliance contractor.
• Motion by Trustee Hannafee, seconded by Trustee O’Brien. Vote: Approved 6-0-1.

Marion County Public Health Department (Dr. Virginia Kane, Director and Chief Medical Officer)

• Presented the 2025 Marion County Health Assessment, a five-year process. Over 4,700 residents completed a community survey, and more than 200 partners and community leaders were interviewed. Five priority areas were identified: (1) mental health and well-being, (2) access to health care, (3) safe and affordable housing (first time a social determinant ranked this high), (4) trauma and injury prevention (including gun and domestic violence), and (5) infant mortality. Community strengths cited included people, diversity, safety, affordability, and built environments. A community health improvement plan will now be developed through town halls and listening sessions.

Eskenazi Health (Dr. Lisa Harris, CEO)

• Announced passage of the Save Our Safety Net Hospitals Act of 2025, sponsored by Senator Jim Banks, which reverses a Medicaid DSH recalculation. The law will boost payments to Indiana hospitals by roughly $140 million annually and may allow retroactive payments for 2024-2025.
• Reported a 25% decline in Medicaid enrollment in Marion County, a 7% drop in Medicaid outpatient visits, but a 31% increase in uninsured ED visits and a 77% increase in uninsured hospitalizations. The loss of $38 million in HCI state funding compounds the challenge.
• Recognitions: Infectious Diseases Clinic received a 2025 Quality Award for cervical cancer screening; three staff members were honored at Indianapolis Business Journal Excellence in Health Care (Michelle Brown, Dr. Claire Willard, Madeline Seeger).
• Remembered Officer Brian Elliott, who previously served as a security team member at Eskenazi Health for six years.
• Mourned the passing of Sid and Lois Eskenazi, whose $40 million gift supported the hospital campus. Their legacy of philanthropy was honored.

Sandra Eskenazi Mental Health Center (Dr. Overly, CEO)

• Announced new hours for the Caring Recovery opioid treatment program: now open six days a week (Monday-Saturday) from 5:30 AM to 2 PM, starting early January. The change gives patients one automatic take-home dose and is expected to ease staffing.
• A pilot project with Crosswalk Health will divert mental health crisis calls from 911 to the center’s 24/7 mobile crisis team, using a dedicated mental health resource.

Indianapolis EMS (Chuck Ford, Chief of Staff)

• Reported 380 average responses per day during a recent snowstorm, treating over 80 hypothermia cases and delivering a baby.
• IEMS was primary responder for an incident at the downtown transit center the prior week; six patients transported.
• Planning underway for NCAA Final Four event.
• New recruit academy has 18 EMTs/paramedics, graduating in three weeks.
• Chief of IT Tom Arkans selected as one of three national EMS advocates by NAEMT for his work on the national EMS advisory committee.
• The new IEMS headquarters construction is on schedule; a beam signing event will be held.

Long-Term Care (Julie White, Vice President)

• January 2026: 11 facility visits completed; $19 million in capital improvement projects finalized with $6 million reserved for emergencies.
• Resident occupancy at 79% (up from 77% in January 2025), average daily census of 6,064 residents.
• West Bend Nursing and Rehabilitation will transition to a new operator on March 1.
• Revised CMS guidance for nursing homes released January 30, effective March 30, 2026.

HHC Foundation (Angela White, President)

• Announced 2026 board officers: Chairperson Deborah Daniels, Vice Chair Bart Peterson, Secretary Sharon Barner, Treasurer Mark Argula, Immediate Past Chair Denny Oaklack. Four new board members joined: Stephanie Kim, Bill McCarthy, Julie Quackenbush, and Lynn Smiley. Six outgoing members were thanked for their service.

Key Outcomes

• All five resolutions (SAP Cloud Migration, Police Department, Standing Committees, Level One Trauma Center, Compliance Work Plan) and the board nomination (David Hudson) were approved by unanimous votes of present members (6-0) with one abstention (SAP Cloud Migration) and one absence (Trustee Du Set for all votes).
• The next board meeting is scheduled for Tuesday, March 17, 2026 (noted to be a holiday, but ultimately set).
• The meeting was adjourned after no new business or unfinished business.