Senate Passes OSU Medical Center Bill

The Oklahoma State Senate passed a bill to ratify the agreement made recently to continue the service of the OSU Medical Center in Tulsa. The House passed the bill last week and Senate President Pro Tem Glenn Coffee fast-tracked the legislation in the Senate, bypassing the committee process.

When signed by the Governor, HB 1127 will provide the first installment from the state toward the hospital’s operating costs. The bill provides for a public-private agreement reached with local and state leaders late last year, whereby the state contributes $5 million a year for the next five years.

In addition to the state funding, private funds will be raised over the next five years totaling $7 million annually from the Tulsa community. The funds will go to the Oklahoma State University Medical Authority which will then contract with the City of Tulsa Trust for the operation of the hospital with St. John Health System.

“This is a win-win-win for the state, the City of Tulsa and the health care needs of rural Oklahoma,” said Coffee. “As Oklahoma continues to suffer a shortage of doctors and other medical professionals, this is an affordable and necessary part of the solution to providing health care to Oklahoma communities. “

The bill passed the Senate by a vote of 48-0 and will go to the Governor for his signature.

Details of OSU Medical Center agreement

The City of Tulsa has agreed to accept the donation of the OSU Medical Center into a city trust.

OSU Medical Center, which is owned by Ardent Health Services (AHS), would be donated to the trust.

St. John Health System has agreed to serve as the contracted management service provider to operate OSUMC on behalf of the trust.

OSUMC employees will become employees of the trust.

The state will provide $25 million for operating costs the first year (including $20 million previously dedicated to OSU for the hospital and $5 million from the state’s general revenue fund).

Ardent will return to the trust $3 million in unused IME money.

After the first year the state will provide $5 million annually for the following four years.

The state will allocate a $25 million bond issue to fund capital improvements at the hospital. No new money will be needed because OSU will use tobacco tax revenue to make payments on the bond.

The plan includes enrolling as many as 20,000 eligible Tulsans in Insure Oklahoma in an effort to reduce the number of uninsured patients.

This agreement leverages the power of public and private partnership including the George Kaiser Family Foundation and St. John who have committed to contribute funds to help secure the viability of the hospital through healthcare vouchers and enrolling Tulsans in Insure Oklahoma.