Debates over strategy, governance continue at North Shore Health board meeting

The North Shore Health board spent much of its meeting debating key issues and voicing frustrations, prompting an intervention from the chair of the Minnesota Hospital Association board, who encouraged members to “get on the same page.”

Despite that appeal, several familiar topics continued to divide board members as they worked to align on North Shore Health’s strategic vision.

Strategic Planning

The meeting began with a statement read by Treasurer Patty Winchell-Dahl:

“After thoughtful discussion regarding strategic partnerships, the North Shore Health Board discussed the organization’s approach to strategic partnerships and the value North Shore Health and its community received from collaboration with those partners and reached a consensus to maintain the current strategic direction while continuing to strengthen and optimize our existing partnerships. The board also affirmed its commitment to evaluating future collaboration or collaborative opportunities that align with our mission of providing community access to compassionate care, and then enhance our ability to serve our community.”

The statement was drafted following a closed session among board members facilitated by consultant Matt Anderson, whom the board hired to help guide ongoing discussions about strategic partnerships.

However, debate resumed almost immediately after the statement was read.

Board members Milan Schmidt and Sam Usem asked CEO Kimber Wraalstad whether the statement provided sufficient direction for carrying out the board’s strategic vision.

Wraalstad said it did.

“I don’t support that statement as is,” Usem said. “It’s obvious that we’re not quite aligned yet.”

Schmidt also expressed reservations.

“I also do feel that this is a very weak statement compared to what I heard in our meeting,” he said.

Winchell-Dahl said she viewed the statement differently.

“To me, what this says is we committed to continuing to be independent,” Winchell-Dahl said in the board meeting.

Usem pointed out that the word “independent” was not part of the statement.

The board has been reviewing its partnerships as part of its responsibility to ensure North Shore Health can continue operating as an independent hospital.

Board Chair Randy Wiitala told WTIP the statement signaled continued participation in the Headwaters Network, a coalition of independent hospitals.

“That’s one thing that we’re definitely committed to, and we’re going to continue going on in the future,” Wiitala told WTIP.

Wiitala said the board’s ongoing discussions about electronic health record platforms are another example of its continued evaluation of partnerships.

“During the discussion, a majority of the board did not have any concerns or express concerns with the overall substance of the statement,” Wiitala said, while acknowledging the board would continue working with Anderson on its wording.

Governance Committee

The board discussed succession planning before turning to a proposal to create a governance committee.

Usem said the idea stemmed from his belief that disagreements over governance were preventing the board from becoming a high-functioning governing body.

“Let’s focus in on governance,” Usem told fellow board members. “Because if we want to be a high-performing board, as we’ve said we are, and we’ve invested in, let’s have a group and actually look at governance.”

During the discussion, Aspirus Lake View President Greg Ruberg questioned whether adding another committee would improve the board’s effectiveness.

“Does it just make the current issues you’re having worse? Does it just make it more difficult?” Ruberg said.

Ruberg said he was concerned about the board’s dynamics and the pressure being placed on staff.

“I think you need to bring a board coach back and really figure out the teamwork piece,” he said, noting that Lake View’s board, which is slightly larger than North Shore Health’s, operates without committees.

Usem argued a governance committee could help meetings run more efficiently and said his proposal was informed by training and conversations with health care leaders and organizations, including the Minnesota Hospital Association and the National Rural Health Association.

“In our official board education, we learned that governance committees help small rural hospital boards work more effectively. That’s why I made the motion,” Usem told WTIP

The motion failed to advance after a 2-2 vote. Usem and Schmidt voted in favor, while Winchell-Dahl and Steve Frykman voted against. Although attending remotely, Wiitala was unavailable when the vote occurred.

Because the vote ended in a tie, the matter was tabled until the next board meeting.

“I think the discussion itself illustrated why I proposed a Governance Committee,” Usem told WTIP. “When the vote ended in a tie after we realized our chair had dropped off the Zoom call, there was uncertainty about how to proceed procedurally, and the result was that the conversation was delayed another month.”

Following the vote, Winchell-Dahl reflected on the discussion and Ruberg’s comments.

“This is a unique community. We kind of do things a little bit differently, and it’s just going to take some time,” she said.

The Bunkhouse

Near the end of the meeting, Usem raised concerns about the property North Shore Health purchased in fall 2025, known as the Bunkhouse.

Usem said he was frustrated the topic was not included on the agenda and requested updates on maintenance work at the building.

“I haven’t been in it since October. I’ve been denied access when I’ve asked to see it. We haven’t been shown pictures again,” Usem said. “It’s my fiduciary responsibility to say I saw something in October when we purchased this asset that’s very concerning to me, and I’ve reached out multiple times and been told, ‘Don’t worry, it’s happening.'”

Winchell-Dahl said she trusted North Shore Health’s maintenance staff.

“They are professionals, they’re builders,” she said. “They know what they’re doing.”

Usem reiterated concerns he said he observed when the property was purchased and expressed frustration with the limited information provided about maintenance work.

Wiitala told WTIP that $30,000 has been set aside for improvements, including replacing the roof shingles. During the meeting, Winchell-Dahl said roof work is expected to be completed in August.

“What the board’s looking for is periodic updates on progress, and I know we’ve got some things coming up here soon,” Wiitala told WTIP.

Wiitala spoke with WTIP about board alignment, the Bunkhouse and more board topics. The audio of that conversation can be found below.

Josh Hinke July 2, 2026