A motion to keep the issue of a disputed information technology equipment contract off the Regional Medical Center trustees’ agenda failed amid calls for ongoing discussion.

After about a 45-minute executive session during a specially called board meeting Thursday, Finance Committee Chairman Kenneth Rickenbaker offered a motion to take the Missouri-based Cerner Corp. contract off the agenda. He noted the board already has approved the contract.

“I motion to take Cerner off of the agenda and only have staff or the IT (Information Technology) committee to make reports and come back to us,” Rickenbaker said. “We voted on it. We approved it and the project is ongoing.”

The motion died for lack of a second.

The hospital board, voting 8-4, in April approved the contract with Cerner to provide an integrated system for the hospital’s IT functions.

But some trustees have expressed concern the project-selection process did not follow appropriate bid and procurement procedures and the board was not privy to all the information needed to make an educated decision.

Hospital officials say all procedures were followed and information was presented to the board.

Trustee and member of the IT Committee Betty Henderson expressed appreciation for the motion’s failure.

“We have a $15 million project going on and we cannot vote not to put it on the agenda because we don’t know when we may need to,” she said. “We certainly cannot vote not to put it on our agenda when it is an ongoing project here in this hospital.”

Trustee Dr. Oscar Butler Jr. questioned Rickenbaker’s decision. “Are you saying that if a question arises, a board member will not be able to raise it?”

“I said not to put it on the agenda,” Rickenbaker said.

“That would be up to the chairman. He makes the agenda,” Butler said. “It is in our bylaws that it is in his purview.”

Board Vice Chairman Dr. Carl Carpenter made a motion to have hospital counsel arrange an educational session on the hospital’s procurement policy.

The motion passed.

In other matters, trustees discussed the wording of a draft letter to be sent to Orangeburg County Council in response to council’s Sept. 17 letter requesting that hospital management return, in writing, a signed affidavit confirming the monies previously invested in an RMC foundation were divested “in accordance with the legal restrictions mandated by the state of South Carolina for government investments.”

At the September monthly board meeting, trustees gave hospital attorney Bob Horger the authority to draft the letter, which will be issued to both Orangeburg and Calhoun councils.

On Thursday, discussion revolved for about 20 minutes around the appropriate wording in relation to the hospital’s understanding of its decision-making process with the investment. Hospital officials have frequently noted the decision was made in “good faith” and on “sound legal advice.”

RMC created the Edisto Health Foundation in January 2006 to allow it to make a wider range of investments than it could as a public institution. The hospital put $25.4 million in the EHF. But Orangeburg County Council questioned the move, saying it was against the law.

Horger also informed trustees that hospital management firm Quorum Health Resources has requested the affidavit be signed by hospital president and CEO Tom Dandridge as CEO and not as an employee of QHR.

Dandridge is an employee of QHR but Horger said QHR’s request does make sense in that Dandridge does ultimately answer to the board of trustees and not to QHR.

After some discussion, trustees decided to have Horger contact QHR with the request Dandridge sign as both CEO and a QHR employee.

If QHR does not consent to Dandridge signing on behalf of QHR, the hospital will request a letter be sent from QHR stating the reason. This in turn will be sent to council with the affidavit.

The other item on Thursday’s agenda was a 1998 bond issue.

Trustees decided to defer action or discussion on the bond until a future meeting when there is a better understanding of Congress’ $700 billion bailout of the financial sector.

The hospital has outstanding $17.7 million bonds.

Market volatility recently has put increasing pressure on the Ambac, through which the hospital issued the $30 million variable-rate demand bond.

In February, Fitch downgraded Ambac’s credit rating from AAA to AA. If Ambac’s credit rating decreases again, the hospital will need to pay off the bonds in 45 days.

Rating agency Moody’s is once again assessing Ambac.

Due to the market, hospital consultants have recommended a fixed-rate bond that would use the hospital’s own credit rating rather than the letter of enhancement.

T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories online at TheTandD.com

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