*The board authorized administration to sign a five-year lease agreement for space for a new clinic in Cold Spring. PAHCS will have the option for another five-year lease, CEO Steve Moburg told the board. PAHCS has identified Cold Spring as a growth area, with 11 percent of its patients at the Richmond Area Medical Clinic having a Cold Spring zip code in a survey two years ago.

PAHCS remains committed to their clinic in Richmond and is still recruiting two new physicians for primary care.

*The board reviewed a new Omnicell medication distribution system with Kris Cervin, Pharm.D. The automated inventory and distribution machine started operation in the hospital in February 2005.

*The board reviewed its March 2005 financials with CFO Kirk Johnson. PAHCS showed an operating loss of $27,200 in March, mostly due to variances with several expenditures, including nearly $100,000 in additional health insurance costs due to greater utilization, nearly $65,000 in volume-related supplies, and $33,000 in additional Minnesota Care Tax to legislative changes in the calculation of the tax.

*The board approved appointing Edward Green, M.D. (allergist) to the consulting staff and approved Nicholas Reuter, M.D. (oncology) as completing his provisional period.