Operating days cash on hand continues to decrease
Melissa Memorial Hospital is in the process of updating its 2020 budget, evaluating staff levels and finding ways to decrease expenses due to lower utilization levels, reported Chief Financial Officer Wes White at the Tuesday, Feb. 25, regular meeting of the East Phillips County Hospital District board of directors.
An ongoing concern for MMH is the operating days cash on hand, which has been decreasing since last summer and is out of compliance with the hospital’s goal of 100 days.
At the end of January, the operating days cash on hand was 55 days, a decrease of 12 from the 67 days reported the previous month, which is calculated using 12 months of average operating expenses less depreciation.
White said cash collections were $1,054,642 in January, which is up from $885,728 in December.
However, he said Athena account collections have been precipitously lower during the month of February, which is the result of switching to a second outsourced coding company after the first company failedto perform. The delayed implementation of outsourced coding has delayed billing of claims during January and February.
“Collections in February are projected to be $629,407 and 57% of the Athena collection baseline of $978,012,” said White.
“We estimate the lower collections in February could result in days cash on hand decreasing to 46 days,” he added.
However, the good news is that a calculated receivable from Medicare of $559,632 will be equivalent to 11 days cash on hand.
Another positive is that utilization levels were higher in January compared to December in most of the major locations of care.
On the January income statement summary, White reported that revenues were less than revenue deductions plus expenses, generating a net loss of $159,341.
He said the accounting department was preparing for the arrival of auditors March 9.
Director of nursing reports
The featured department manager at last Tuesday’s meeting was Julianne Kramer, director of nursing at MMH.
She said her department has been working hard to establish a team over the last several months, and she was pleased to report that they have been decreasing their use of traveling nurses.
A focus of the department is to get the word out about the swing bed program at MMH so that people can come back to the Holyoke community to get the care they need.
Kramer mentioned the need to replace some aging equipment in the future and genuinely thanked those involved in purchasing the two transport chairs at the MMH Foundation’s Legacy Event auction earlier in February.
“We hear good things about the nursing staff all the time,” said board member Gary Rahe.
Other business
At the Feb. 25 meeting, the board:
— Reviewed Policy 2.1 regarding community/external relations.
— Learned that MMH will be publishing its first health magazine.
— Approved 2020 quality improvement and infection prevention plans as presented by Jennifer Cano, director of quality/IP.
— Learned that MMH has ramped up its patient screening process due to the COVID-19 outbreak in other parts of the world. In regard to this coronavirus, Interim CEO Cathy Harshbarger added that in the future MMH could experience some shortages when they order supplies, such as face masks.
— Heard an update on the Holyoke Community Childcare Initiative from Harshbarger. She said the committee wants to begin mapping the location of the new child care center, which will be located close to the hospital. Harshbarger requested help from the board before the placement is finalized, and board member Mike “Woody” Woodhead was assigned to be the board liaison.
— Approved credentialing reappointment applications for Ross Barner, M.D., pathology; Michael Kim, M.D., interventional cardiology; Hugh Parker, M.D., cardiovascular disease; and Shane Rowan, M.D., cardiovascular disease.
— Held an executive session for personnel.