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PT director resigns, contract pending for therapy services

Following an executive session June 27 of the board of directors of Marion County Hospital District #1, Rehab Visions will be contracted to provide therapy services to St. Luke Hospital.

Michael Jacobs, current physical therapy director, resigned Thursday, with his last day on the job being July 30.

Jacobs was hired on contract, then was offered permanent status as a hospital employee. Negotiations could not be reached which resulted in the hospital looking at other options.

Rehab Visions is an Iowa-based company, said Jeremy Armstrong, hospital chief executive officer. The management services company specializes in small facilities, including McPherson.

The company will employ and manage the physical therapy department but current employees will remain hospital employees.

Other information will be disclosed when contracts are signed.

In other business:

— The board approved a t-system proposal that would allow emergency room doctors to more easily document cases.

Armstrong explained to the board that the more information doctors can provide, the more reimbursement the hospital could receive.

The cost for the system is $750 for the setup and $500 per month for usage. Armstrong added that 80 percent of emergency rooms in the U.S. use this type of system to justify reimbursement.

So far this year, St. Luke Hospital has had 600 emergency room patients, and a projected total for the year of 1,200.

Emergency room doctors told hospital personnel that the hospital would recover expenses through more accurate coding.

— The board approved a contract with Senior Care Act for 2007. The contract would allow North-Central Flint Hills Area Agency on Aging to reimburse Marion County Home Care clients $23 per hour for services. Clients who qualify for assistance do not qualify for Medicare and cannot afford private pay services.

— John Harris and Jason Barb of BKD LLP of Wichita, the district's auditors, presented a detailed report of a current audit.

Harris said the district was "sitting pretty good" at year-end with a net worth of nearly $3 million.

The auditors could not find a $300,000 adjustment which affected the Medicare reimbursement amount which will result in Medicare paying the hospital too much in reimbursements.

Medicare will be contacted with the information which will probably result in a Medicare audit.

The board will review the information and recommendations, and will discuss at a future meeting.

When the auditors concluded their presentation, chief financial officer Hilary Dolbee advised the board that QHR, the district's management consulting firm, recommended auditors be retained for no more than four years.

This was BKD's first year as the district's auditor and Dolbee said she would like to see some continuity with them. The board instructed Dolbee to request a proposal from the accounting firm.

— Armstrong reported a grant for $21,000 had been received for video conferencing equipment, a dedicated T-1 line, and one year of service.

— Dolbee reported that $1 million had been moved to banks within the district. Pilsen State Bank received the largest deposit, with other deposits made at Marion National Bank, Tampa State Bank, and Edward Jones. Deposits were determined by interest rates.

— Patient census had improved in June with 10 patients in the hospital during the third week of June, said Dolbee.

— Board treasurer Greg Bowers was approved to be added to the district's bank signature card.

— Debbie Craig, director of St. Luke Living Center, reported the long-term care unit was at capacity with a waiting list.

She also reported a favorable survey or inspection from state agents.

The next board meeting is at 7 p.m. July 25 in the clinic basement.

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