Ken Goodin, Vice President/President Electjulie Demerath, Director

Board Minutes 7/11/07

Present:

Ken Goodin, Vice President/President ElectJulie Demerath, Director

Bing Herald, Past PresidentPatrick Lukacs, Director

Scott Everson, TreasurerPaul Myers

Randy Roat, SecretaryMichelle Botana

Holly Louie, DirectorCindy Rounds

Rich Papperman, Director

Jackie Willett, Director

Barry Reiter, Director

Absent:

Sherri Dumford, President

Andy Kokosa, Director

Brad Lund

1. Approval of June 20, 2007 Board call Minutes

MOTION: Barry Reiter moved that the minutes from the June 20, 2007 be approved and Rich Papperman seconded. Passed.

2. National Office report

ACTION: If report typos are found, please send notice to Paul via email.

ACTION: Owners and Managers information will be included in future this report in the future.

ACTION: Board was asked to send any addition requests to Paul and Michelle.

3. Financial Report

Scott Everson gave an overview thru May of the financials and the bottom line is the HBMA association is sound on budget. Our accounting company is working toward an automated process to reconcile financially all individual payments.

4. Status of the 2006 audit

The HBMA financial audit is going well and Scott will have a final report at the next Board call. Discussion was held about the significant budget variance for this year’s Compliance Course. It was noted that additional care should be taken in future course budgets.

ACTION: HBMA committees will review the budgets after every conference/meeting and look for any line item discrepancies.

5. Nominating Committee report

The Nominating Committee reported that the four candidates for the upcoming election are Holly Louie, Scott Everson, Don Rodden and Bill Carns.The board discussed the fact that there were only 4 nominees forwarded for 4 open spots. Nominating committee chair informed the board that there were a number of factors influencing the nominees such as prior committee involvement (leadership) and nominees rejecting invitations to run. Further discussion was held regarding opening up an additional board spot. The board, while largely in support of broadening the board by increasing board size, recognized the trouble in filling the spot. Bing Herald, due to go off the Board on November 30, 2008, announced his intention to resign his seat as of November 30, 2007. Discussion was held about mechanisms to fill this vacancy. Alternatives included: creating a process whereby the membership will elect a person to fill the vacancy or for the HBMA president or board to appointa board member. Care must be taken to avoid term limit restrictions.

6. Government Relations Committee update

Randy shared with the Board the comments from the NCVHS Testimony conference call on Tuesday, July 10th regarding the implementation of the 5010 transaction set. Bill Finerfrock, Barry Reiter, and Curt Cvikota, heard comments from Cory Andrews, Lonnie Harden and Ron Coots from MedAvant and who commented on the additional costs to implement 5010 for clearinghouses, billing companies and doctors. The HBMA committee plans to hear input from vendors, in-house software developers, and other associations prior to preparing final testimony.

7. Public Relations Committee update

Andy Kokosa was not on the call. Michelle Botanagave the report.

Peggy Wagner is making a list of important items(Press release, brochures, articles and contact sheets) to have for public relations distribution. This will be officially called the ‘Membership Value Kit’, only for HBMA members and not the former name ‘Media Kit’.

8. Education Committee Update

Rich Papperman reported that the Education Committee is working on the HBMA 15thAnniversaryCelebration and the 2008 conferences. Discussion was held about the “missed opportunity” to buy down roomrates for Friday and Saturday at the Bellagio Fall conference. It was noted that this course of action (the buy down) was approved by the board (at least in spirit) last November.Ken Goodin assured the board and education committee chair that there was no intent to “go against” the education committee recommendation but it was a brochure printing oversight. The Executive Committee discussed methods to retroactively implement a $20 discount but they were logistically complicated and cumbersome. Ultimately the executive committee felt that the rates were already published and efforts to “undo” the mistake would create further confusion.

ACTION: Brad will speak to the hotel’s sales representative questioning undercutting room rates on the internet and this counting against our room block.

9. ISAM Agreement

The National office staff exited the call prior to this discussion.

MOTION: Rich Papperman moved to approve the ISAM contract with the modificationof the last sentence of section 7.j of the agreement to read "Any free lodging agreed to by hotels or other facilities in connection with HBMA functions will be made available to the HBMA Board." Holly Louie seconded, Passed unanimously.

Scott Everson informed the board of the need to create a survey instrument to be used with ISAM per our newly approved contract. Scott offered to lead the committee or allow someone else to lead the committee. He stressed the urgency of creating and implementing this survey instrument. Volunteers included: Holly L., Rich P., Randy R., Patrick L.and in her absence Jackie D. was suggested as a committee participant. Scott agreed to initiate committee dialogue ASAP. Related discussion was held aboutrelative weighting of HBMA priorities when producing the survey results and the associated bonus payments.

1