Hospital bounces back, audit shows
At this time last year, Melissa Memorial Hospital seemed to have every financial card stacked against it in time for the audit report. This year, with construction completed, a revamped revenue management system and a wide and thriving array of new services, the hospital showed a strong financial performance, featuring a $1.2 million increase in net position since last year.
The informal audit report was presented by Jessica Roerick of EideBailly CPAs at the Tuesday, May 23, East Phillips County Hospital District Board meeting.
In 2015, MMH’s net position increase was quite low, just under $400,000. More than tripling that increase in 2016 brought the net position of MMH to $10,933,923, up from $9,720,927 in 2015.
The current ratio, indicating its ability to meet current obligations with its current assets (calculated by dividing assets by liability) was up from 3.2 in 2015 to a strong 4.7 in 2016, well ahead of the 2015 2.9 national average for rural hospitals and 3.5 Colorado critical access hospital average.
The days cash on hand, or average number of days MMH could operate without additional cash receipts, is down from 332 in 2015 to 242, a level not seen since 2013. However, despite the large drop, it’s still well above the 2015 Colorado CAH average of 151.
Salaries, wages and benefits account for roughly 50 percent of MMH’s total operating expenses, with nearly $400,000 more going toward salaries and wages in 2016 and over $180,000 more toward employee benefits.
Roerick noted that patient prices at MMH were rather low, saying that a charge master review might be in order. CEO Trampas Hutches confirmed that MMH is the lowest-priced hospital in the region.
April a strong month at MMH
In the monthly financial report given by CFO Wes White at the meeting, there was more good news for MMH, as the facility is currently a full 45 percent above its budgeted year-to-date net income.
Meyer presents straightforward vision plan alternative
Dr. Tim Meyer, Holyoke Family Eye Care optometrist, also presented at the Tuesday meeting, at the board’s request, a very straightforward alternative to complex vision plans — the 20/20 Vision Plan.
“Nobody likes vision plans,” said Meyer, citing premium charges, limited choices and administrative paperwork as common complaints. Looking for a simpler way to match patient savings considering premium payments, Meyer came up with the 20/20 Vision Plan about 20 years ago and is now offering it at Holyoke Family Eye Care.
The plan is this — opt out of a traditional vision plan and instead get a flat 20 percent off any and all optical products (glasses, lenses, bifocals, lens treatments, etc.) and 10 percent off any contact lenses. Meyer said eye exams cannot simply be discounted at will, so full price is paid for the exam itself.
Patient savings are usually more than what is saved through traditional vision plans after paying premiums, plus the benefit of unlimited selection of products, said Meyer. There is also no extra paperwork, and money is kept local rather than going to a distant vision insurance company.
In addition, Meyer said Patch software is now available to help vision patients transition off their current vision plans to the 20/20 plan.
Meyer also presented a new procedure he hopes to bring to Holyoke to help treat and heal a variety of eye disorders. The AmnioGraft® procedure serves as a tissue replacement by delivering the unique healing actions of cryopreserved amniotic membrane, which is obtained from cesarean sections.
The results described by Meyer from past procedures he has done using AmnioGraft® are remarkable.
After the presentations, Hutches and the board discussed how fortunate they felt to have Meyer at MMH, citing their personal experiences as his patients as well as the influx of compliments from the community. Meyer has only taken appointments in Holyoke since May 1.
Pharmacy, EMS thrive
Other services reporting success at MMH at the Tuesday meeting included the pharmacy and the EMS.
Pharmacist Amy Kleve reported an average of 57 prescriptions filled per day in April, compared to a forecasted 30 per day, and 73 per day in May, compared to a forecasted 40 per day.
“It’s going well,” said Kleve, saying that a second technician, Breanna Wisdom, has been hired for additional support. Unfortunately, the original technician, Michelle Liang, will soon be leaving, so another position will be open.
White added, “What Amy’s not telling you is that some days it’s been 109 prescriptions.” Kleve confirmed that 109 prescriptions in one day was “nuts” and said she was thankful for the help.
In EMS, Hutches reported 30 transfers conducted by Holyoke ambulance since Brady Ring’s arrival as full-time director.
Hutches also said that three new permanent emergency department/inpatient doctors have been successfully recruited, bringing the total number of permanent physicians to eight. Clinic doctors are still being recruited.
Eighteen of the hospital’s 22 goals for 2017 have already been fulfilled, according to the CEO.
HCCCI receives grant
In a report on the progress of the Holyoke Child Care Center Initiative at the May 23 meeting, Hutches reported that the HCCCI has officially received the anticipated Buell grant, matching community-raised funds for a total of $24,000 to the Initiative’s name.
The U.S. Department of Agriculture will now work with the committee to fund seed grants, environmental studies, architectural designs and more for the proposed center.
MMHF report
Chairperson Steve Young reported on behalf of the Melissa Memorial Hospital Foundation at the Tuesday meeting.
After a presentation to MMHF by John Chapdelaine of the Eastern Colorado Community Foundation, MMHF is considering putting $100,000 saved over the last five years for the Grow Our Own Physician campaign into the ECCF for better returns.
The Building New Bridges event, a cultural dance, is set for Saturday, June 10. There will not be a meal this year, only beverages with the dance.
Young also reported that the annual amateur triathlon held each year has been relinquished to the Holyoke City Recreation department, so the Foundation will no longer be sponsoring the event. The triathlon is expected to be in late June or July.
Board officers elected; bylaws discussed
Also at the Tuesday meeting, the board nominated and elected its officers for the following year. They are chairperson Young, vice chair Gary Rahe and secretary/treasurer Angela Powell.
There was also a great deal of discussion about bylaws that could potentially need updates, led by bylaw committee members Rahe and Mike Woodhead. After recently reviewing board bylaws with Hutches, one particular area in need of addressing is the scenario in which board members resign en masse.
While this is far from a current concern, it has been known to happen when there is a conflict of personalities or directions on the board and could also be the scenario if mass tragedy of some nature were to occur.
Hutches, Rahe and Woodhead plan to visit with Phillips County commissioners in the near future to discuss at which point their assistance would be needed.
Discussion also addressed the fact that work sessions with three or more board members are considered meetings and should be treated as such, storage of regular and executive session minutes, and whether or not to switch to a roll call vote as the standard on all motions.
Governance policy was also reviewed, with an amendment passed to reword Policy 4.6 regarding monitoring and evaluation of the administrator’s performance.
Other business
In other business at the May 23 meeting, the board:
—Approved one new appointment, Daniel Hoffman, M.D., to dermatology; three regular appointments, including Sasikanth Adigopula, M.D., to cardiology, Lane Looka, FNP to family medicine, and Jonathan Scott, M.D., to teleneurology; and five reappointments, including Maysun Ali, M.D., to teleneurology, James Swinehart, M.D., to dermatology, and James Murrish, M.D., Michael Myers, M.D., and Daniel Possehn, M.D., to radiology.
—Held a 13-minute executive session for the purpose of contract negotiation.