President Pro Tempore
Sen. Glenn Coffee, R-Oklahoma City
State Capitol Room 422
Oklahoma City, OK 73105
For Immediate Release: March 3, 2009
Sen. Glenn Coffee
SENATE PASSES OSU MEDICAL CENTER BILL
Public-Private Partnership Assures Continued Health Care Services
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 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.
For more information contact:
Sen. Coffee's Office: 405-521-5636