Hospital district experiences anticipated transition pains
Staff reporter
Financial records of St. Luke Hospital & Living Center continue to reflect the transition from a corporate-leased operation to public independence.
Chief financial officer Kevin Cronkleton reported Thursday to Marion County Hospital District #1 board of trustees of financial shortfalls as a result of the transition.
Cronkleton had estimates of first quarter financial statements, and compared actual figures with those proposed in the budget for October, November, and December.
Even through the picture wasn't rosy, it was far from dismal.
Projected expenses for the three-month period were $1,531,315. Actual expenses were $1,516,036, more than $15,000 below budget.
Budgeted net income from operations was $174,926 and actual income was $66,473, a loss of $108,453.
Anticipated loss for the three-month period was $156,706 and actual loss was $47,380.
The hospital district ended 2004 in the "red" due to the transition process but it's not an insurmountable amount to make up.
The transition period for the hospital district is anticipated to be 12 months.
"It'll be interesting to see January revenue figures," Cronkleton said after the meeting. He anticipates some of the loss being recovered with January revenue.
January revenue should be significant because of the increase in the number of inpatients.
Typically the average would be three to four patients in the hospital per day. So far in January, the daily average was 10 to 12 patients.
Outpatient revenue also remains strong, Cronkleton said.
In other business:
— The board approved $202,847 in accounts payable for the first two weeks of January.
— Board chairman Gene Winkler reported there were two buyers interested in purchasing the Lincolnville Clinic building.
The board approved an independent appraisal be performed by Charles Heerey at a cost of $50. The county's appraisal was $26,000.
— Chief executive officer Thom Smith updated the board regarding physician recruitment.
Smith met with physicians Don Hodson and Kim Hall regarding the type of physician needed. A promotional packet soon will be provided to prospects, Smith said. The earliest a new physician could be hired would be summer.
The physicians also assured Smith they intend to remain in Marion.
Recruiting firms have been contacted by Smith. Some firms work off contingency — an amount paid to start the process and an amount paid when a recruit is hired. Other firms require a monthly retaining fee.
Hospital personnel and the board are anxious to recruit an additional physician to generate more revenue.
— The district has been approved for a grant for a training exercise regarding weapons of mass destruction. The $16,600 grant will provide funds for hospital staff and other entities to participate in the session.
Smith said an application has been submitted for a $22,000 grant for bio-terrorism training and preparation. Smith and hospital staff anticipate the approval and funding of the grant.
— Cronkleton reported a loan application with CIT has yet to be approved. The $400,000 loan would reimburse the operating budget for the cost of computer networking equipment and installation.
The company wants the district to prove its authority to repay the loan through documentation.
Smith and Cronkleton will continue the process of providing necessary information with a decision made in the coming week.
— Medicare and Medicaid provider numbers have not yet been issued to the hospital. The hospital will be able to continue use of Banner HealthSystems numbers until Jan. 31.
— A policy will be presented to the board for consideration regarding the payment of operating expenses by hospital personnel without prior approval from the board.
— Janet Herzet, director Marion County Home Care, presented information to the board.
Over the past three months, the department had provided nearly 2,000 home care visits and minimal care to area residents.
— Debbie Craig, resident director of St. Luke Living Center, reported continued at 100 percent occupancy.
— St. Luke Foundation reported a balance at the end of 2004 of $106,000.
Board director Peggy Blackman suggested a brochure about the foundation be made available and acknowledgment be made in writing to donors.
— Three people have been hired to fill positions. Janet Zeiner, ward RN, Sheri Rogers, ward clerk, were hired for the hospital, and Alisha O'Dell, CNA, was hired at the living center.
It was announced Kathy Utting, RN, had resigned and moved to Kansas City.
— An employee social will be from 3 to 6 p.m. Jan. 25, in the clinic building.
— Smith reported he is developing an employee recognition program.
— Board members Gene Winkler, Martin Tice, and Ken Vinduska will attend training in February in Nashville, Tenn., provided by Quorum Health Resources, the district's consultant.
— Prior to the start of the regular meeting, the board adjourned to two executive sessions for 30 minutes to discuss attorney/client and non-elected personnel issues.
In attendance with the board were Smith, Cronkleton, and Tom McCall of Quorum Health Resources.
No decisions were made when the regular meeting convened.
The next regular meeting of the district will be at 7:30 p.m. Feb. 10 in the clinic basement.
