Hospital board approves spending $1.8M of CARES Act funds by June 30 deadline

East Phillips County Hospital District Board of Directors approved spending up to $1,816,000 of funds from the Coronavirus Aid, Relief and Economic Security Act for capital purchases at their regular monthly meeting Tuesday, June 22.

The funds were received in 2020 and have been sitting in the hospital’s restricted funds. Facilities across the nation recently found out they needed to spend and/or recognize their CARES Act money by June 30, explained David Applewood, chief financial officer at Melissa Memorial Hospital.

He said that the funds have to be used for things that are related to COVID-19 in some form or manner. As of last week, MMH was still debating how to use the funds.

This is a crazy, complicated situation that none of us have ever been in before, Applewood noted.

Auditor report approved

Luke Zarecor of Dingus, Zarecor & Associates PLLC, was at Tuesday’s meeting to present an audit report.

He noted that 2020 was a unique year for medical facilities because of the massive influx of cash from government programs.

“You weathered COVID a lot better than other facilities did,” he said in praise of Melissa Memorial Hospital.

The board approved the audit report.

Financial report presented

In the financial report for May, Chief Financial Officer Applewood said total revenue was $1.9 million, total expenses were $1.8 million and net income was $23,000.

Year-to-date total revenue was $10.5 million, and year-to-date net income was $8,000 without the $1.5 million from Paycheck Protection Program forgiveness.

Applewood said funds from MMH’s second round of PPP were exhausted in May. Paperwork was expected to be done soon to request forgiveness for nearly $1.5 million.

Other business

In other business at the June 22 meeting, the board:

— Approved a nondiscrimination policy for the employee handbook.

— Heard a report that MMH administered about 50 COVID-19 vaccines in the last couple of weeks.

— Heard an update on bids for property insurance.

— Reviewed Governance Policy 3.2 regarding accountability of the administrator.

— Extended a declaration of local disaster emergency for another 30 days.

— Heard a Quality Committee report from MMH CEO Cathy Harshbarger.

— Approved credentialing for two initial applicants and seven reappointments.

— Discussed board member responsibilities.

— Held a 50-minute executive session regarding personnel.