*The board noted that PAHCS recorded another good financial month in June 2004, totalling over $3.5 million in patient revenue and earning an operating profit of $252,200. For the year, PAHCS has recorded a profit of $1,065,700, whereas last year it was running in the red at this point by $122,200.

PAHCS's cash flow has also improved due to its better financial operation. Administration still hopes to eliminate its line of credit - currently at $300,000 - by the end of this fiscal year, which ends Sept. 30.

*The board learned that Dr. Heidi Malling has announced her resignation from the medical staff. She has worked for PAHCS for four years, being the primary doctor at the Eastside Medical Clinic in Belgrade, but intends to leave in September to take a position in Brainerd.

PAHCS will now try to recruit two doctors, one for its Richmond clinic and one for its Belgrade clinic.

*The board discussed the Hilltop Care Center in Watkins, which loses about $10,000 per month due to low census and low rates. The actual cash loss of the nursing home - subtracting depreciation, which is a noncash expense - is only about $30,000 per year, but administration is studying options for the nursing home. A study to add a specialty care unit (Alzheimer's/dementia) indicated that it could help the home get more residents but would also require additional costs.

The larger problem with the nursing home is its low rates, which still stem from when the Good Samaritan Society ran the home. Because they were very efficient (i.e. they had low operating costs), the state rewarded them with low rates, said CEO Steve Moburg. Its rates are 10 to 15 percent less than the Koronis Manor in Paynesville. Raising rates at the Hilltop Care Center would require a legislative fix, which could take at least a couple years to accomplish.

*The board approved appointing Bonnie Fines, M.D. (radiology), and Danielle Leighton, M.D. (radiology), to the medical staff after both had completed their provisional period. Both belong to the St. Cloud Radiology Group that provides radiology services to PAHCS.

*The board approved an employee loan to Wendy Kraemer, who is pursuing a registered nurse degree.