Hospital in Black for May, Big Increase in Surgeries

The regular meeting of the Board of Directors of KDH was called to order at 7:00pm June 23rd, 2016 at the KDH lobby by Board President Brenna May. Board members present were Chantae Simpson (via Skype),Pat Myers, Jeff Miller and Jim Parker. Also present were Margaret Grismer, CEO, Janell Goodno, CFO, Dr. Leal, Melissa Stroh, PA, Kim Balding, Manor Administrator, Tammie Stroud, Manor DON, Judy Schrock, Foundation President and members of the press and public.

Brenna moved item 7)a Lance Freeman – 340B Program to item 3)a. Pat moved to accept the amended agenda; Jeff seconded; motion carried.

Lance-340B Program: Lance Freeman, owner of Kiowa Prescription Plus, presented a 60 days notice of termination of the 340B contract. Lance cited this was due to a breakdown in negotiations with KDH Administration to accept a 340B model that did not make business sense to him.

Janell and Margaret explained that KDH was looking at different models for 340B in an effort to maximize 340B money for the hospital. In light of the budget shortfall and the desire of KDH to limit the tax burden on taxpayers, KDH feels bound to do everything it can to maximize revenue.

After a lengthy discussion, Lance agreed to let the Board table the matter.

Pat moved to approve the minutes of the May 19th regular meeting and the special meetings of May 27th and June 9th; Jeff seconded; motion carried.

The Hospital Statistical Report was presented. May had 4 admits with 22 inpatient days and 6 swing bed admits with 79 days and 590 outpatient visits. The Clinic had 335 visits. The Manor currently has 23 residents.

The payment of hospital and manor bills was reviewed. Pat moved to approve as presented; Jeff seconded; motion carried. There were no uncollectible accounts for May. Jeff moved to approve the bad debt accounts for May; Jim seconded; motion carried. During the month of June KDH is offering 20% off of the bill if paid in full.

The Hospital financials for May were reviewed. The Hospital had a total operating revenue of $498,700, operating expenses of $427,705, and non-operating revenue of $97,222 for a revenue in excess of expenses of $168,358.

May financials for the Manor show a total operating revenue of $123,705, total operating expenses of $136,866, total non-operating revenue of $5,000 for a revenue in excess of expenses of -$6,412. Chantae moved to approve as presented; Pat seconded; motion carried.

Old Business: City of Kiowa Bill: As reported previously, our electric bill will increase because we were being under billed. Lou Leone, city manager, was going to try to work out an organizational rate that would not be so significant an increase. We had hoped the know the new rate by now, but Lou reports that it will take one year to evaluate before the city can make a decision on the rate.

Old Business: Tax Credit Update: Janell reports it was submitted in May and we will know after July 1st if we were granted the credits.

Old Business: Landscaping bids: Janell obtained bids from Gottlob Lawn and Landscape and Younie Lawnscapes Inc. The bids ranged from $1,250 to $23,665. Jeff moved that we cap spending on landscaping at $18,000; Pat seconded; motion carried. Janell recommended that we ask the Foundation for $15,000 and use $3,000 from donations.

New Business: 2017 Tax Budget Hearing: Janell reports that all the info has be sent to BKD for review.

Administrator Report: Physician recruiting: We continue to recruit through the Inline app, Doximity, Arthur Marshall, KU Med School, word of mouth through current temporary physicians, especially Dr. Tomsen, newspaper, and website.

Administrator Report: Dr. Vargas was extended an offer but has accepted another offer.

Manor Report: Tammie Stroud, RN is the new Manor DON. The Manor has given 4 or 5 tours and is using an electronic marketing app. The childcare half-price enrollment continues this month. Children and residents had a picnic at the park recently. Mobile Meals has lots of sponsors for persons who are low-income. The new case mix reimbursement is higher than it’s ever been. They just had a benefit bake sale for the Maas and Thimesch families for medical expenses. The next fund raiser will be working on acquiring a golf cart. They are also working on raising money for Music in Memory, a program for residents that uses music to enhance memories.

Manor DON Report: Tammie Stroud reports they are working on recruiting, training and getting ready for re-survey.

Kim notes that a Kiowa District Manor Notice of Discharge policy has been adopted and all residents have been informed of the change.

Hospital DON Report: At this time last year we had 13 surgeries and this year we have 33. At the end of May we met Dr. Porter’s goal of doubling the surgical revenue and now he is pushing to triple the revenue.

Rural Health Clinic Report: They are transitioning from 30 minute to 20 minute office visits in order to accommodate more patients.

Medical Staff Appointments: Karim Masri, MD, Iram Sirajuddin, MD, Justin Moore, MD, Mary Betterman, MD, Scott Belliston, DO, Samuel Porter, MD and Christie Leal, DO.

The July regular Board meeting and 2017 Tax Budget Hearing will be Tuesday July 26, 2016 at 7:00pm at the KDH Clinic lobby.

At 8:23pm Jim moved to enter executive session to discuss RM/QA, non-elected personnel and contract/legal; Chantae seconded; motion carried. At 11:18pm Jeff moved to enter regular session; Jeff seconded; motion carried.

Jeff moved to approve RM/QA; Chantae seconded; motion carried. Jeff moved to accept the mutual severance agreement with Dr. Leal pending legal review; Chantae seconded; motion carried.

The Board will reconvene Tuesday June 28, 2016 at 7:00 at KDH for an executive session to discuss strategic planning and contract/legal.

At 11:20 Jim moved to adjourn; Jeff seconded; motion carried. The meeting was adjourned.

Respectfully submitted,

James E Parker, Secretary