Health and Hospital Corporation President and CEO Paul Babcock briefed the board on April 15 about pending state budget activity and possible policy changes that could affect the corporation’s revenue, and Interim CFO James Simpson delivered a general fund financial update through March 31.

Babcock said both the governor’s and the state House budgets included HCI funding for the corporation but the Senate’s amended budget to House Bill 1001 did not. He said HHC leadership has met with the governor’s office, House leadership and the Marion County delegation to press for restoration of that funding. “We think we have a good shot of that, but we’re obviously watching it very closely, as it does impact our top of the line revenue,” he said.

Babcock also described proposed changes to Indiana’s long‑term care quality assessment fee (the bed tax). He said the state currently has a 3 percent assessment and legislation would give the Family and Social Services Administration secretary authority to raise it to 6 percent. Babcock estimated the increase could create a possible $12,000,000 impact to the long‑term care fund and said HHC is advocating to limit the increase.

Babcock said a bond refinancing working group has met; refinancing would move the corporation from taxable to municipal non‑taxable bonds and reduce exposure to uncertainty in federal treatment of taxable bonds. He asked trustees to watch for a beam‑signing invitation for the public health laboratory on June 16 and noted an IMS groundbreaking in May.

Interim CFO James Simpson reported the general fund showed a decrease in fund balance of about $5,300,000 as of March 31, driven primarily by open purchase orders totaling about $23,200,000. Simpson said public health revenues are better than budget by roughly $2,400,000 and headquarters miscellaneous revenues are about $1,700,000 better than budget; personal services are favorable to budget by about 10.6 percent (roughly $2,500,000). Charges for services are worse than budget by roughly 27.5 percent (about $6,600,000) mainly because of annual open purchase orders. Simpson said the first full projection month for 2025 shows an anticipated year‑end increase in fund balance of approximately $1,900,000, assuming current conditions.

The board discussed the bed‑fee proposal and asked for clarifications about which bill or authority would allow the change; Babcock said the legislation would grant the FSSA secretary discretion to change the percentage. No formal vote or policy change was made at the meeting; the items were presented as updates and for trustee awareness.