Reports Requiring Deliberation(s) or Approval(s) A. CEO Update on System Operations Dr. Scholarship Program, which celebrated its 10th year of helping employees pursue higher education. Funded by a single donor who has contributed approximately $2.5

Staff Report & Agenda Item Details

Reports Requiring Deliberation(s) or Approval(s) A. CEO Update on System Operations Dr. Scholarship Program, which celebrated its 10th year of helping employees pursue higher education. Funded by a single donor who has contributed approximately $2.5 million, the program awarded 14 scholarships this year, covering tuition and educational expenses for employees pursuing career advancement. Dr. Cerise highlighted moving stories from scholarship recipients whose journeys reflected perseverance, financial hardship, and a on both employees and patients. Dr. Cerise also provided a brief operational update, noting the successful opening of the 9th floor patient care unit, which added 56 beds and reached full occupancy within days of opening. The additional capacity has modestly improved Emergency Department boarding pressures, though patient throughput remains an ongoing challenge. Planning continues for major events such as the World Cup, but Parkland has experienced minimal impact on patient volume. Leadership expects the newly renovated 8th floor to open in October, further expanding inpatient capacity. B. Review FY27 Parkland Health Budget Assumptions Keri Disney-Story reported that FY2027 budget projections have improved significantly compared to earlier forecasts. Government supplemental payments are now expected to increase from FY2026 levels, providing stronger-than-anticipated revenue performance. Parkland plans to request a 7.6% tax revenue increase (reduced from the original 8% target due to appeal limitations), generating approximately $80 million in additional revenue and supporting both operations and future Southeast campus development. Leadership is reevaluating future Southeast campus replacement options given evolving Medicaid, supplemental payment, and federal funding changes. Key risks include declining Medicaid-related supplemental payments, managed care contract pressures, and potential federal reimbursement reductions beginning in 2029. Expense assumptions remain relatively stable, including a 3% salary increase, modest benefit growth, and inflationary increases in supplies, pharmaceuticals, and purchased medical services. C. Parkland AI Strategy Review technologies that deliver measurable financial, operational, and clinical value rather than