• The board accepted a letter from three department heads, who expressed concern over the new organizational plan for the Paynesville Area Health Care System (PAHCS). The heads of laboratory, radiology, and rehabilitation services wrote to the board with concerns about moving to the fourth tier in the new plan.

Previously, these department heads reported directly to the chief executive officer, but now their official place is under the chief operating officer and the acute care administrator. Their letter to the board stressed that their concerns were based solely on their feeling that they would be too far removed from upper management and the board of directors, and was not based on any personality conflicts. They also said that they felt it was their duty to raise their concerns so the board is aware of them if any problems surface in the future.

The department heads were reassured that the budget process would be the same and that they could continue to communicate directly with administration and other departments. The board formally acknowledged the letter from the department heads.

• The board was informed by its CEO search committee that the goal is to have a new CEO in place by Jan. 1, 2003. Current CEO Willie LaCroix has announced his retirement and the committee has been formed to find a replacement.

• The board appointed Lon Peterson of Richmond to a one-year term on the Paynesville Area Hospital Foundation. The foundation, which consists of five hospital board members and four public members, got started in January and had a vacancy among the spots reserved for the public.

• The board revoked its resolution opposing a second hospital in St. Cloud. The board had passed a resolution about a year ago opposing the lifting of the state's moratorium on hospital construction for Allina to build a new hospital in St. Cloud.

By revoking that previous motion, PAHCS now has a neutral position on having a second hospital in St. Cloud. PAHCS's original position was driven by its relationship with CentraCare and by labor shortage concerns. The change is partially caused by support for Allina among some outreach physicians that serve PAHCS, especially the surgeon's group.