Nearly $4.6M helps MMH during crisis
Thanks to the Coronavirus Aid, Relief and Economic Security Act, Melissa Memorial Hospital is getting help in the form of millions of dollars from the federal government during the COVID-19 pandemic.
The East Phillips County Hospital District board of directors learned about the $4,591,788.12 in federal funding at their regular monthly meeting Tuesday, April 28, held over Skype videoconferencing.
In a report prepared by Chief Financial Officer Wes White, Medicare accelerated payments deposited in April totaled $2,679,266. A Health and Human Services grant was $385,747.76, and another from HHS was $74,419.24.
These relief funds totaled $3,139,433 and are equivalent to 61 days cash on hand, said White. “These funds will be recorded as other assets and as payables to federal government until qualifying revenue losses and expenditures are identified,” said his report.
The hospital also qualified for a $1,452,355.12 loan through the Small Business Administration’s Paycheck Protection Program. This program is giving businesses loans with loan forgiveness potential to provide COVID-19 relief funding for qualifying payroll, lease/mortgage interest and utilities.
On Tuesday evening, the board of directors first passed a resolution designating the hospital district as a qualifying “enterprise” under the Taxpayer Bill of Rights amendment. Next, the board approved the PPP loan from First Pioneer National Bank for 24 months at 1% interest.
MMH Interim CEO Cathy Harshbarger said it’s likely that the whole loan can be forgiven as long as the funds are used correctly. The used portions are rolled into a grant, and the unused portion may be rolled into a loan that can be paid over two years at 1% interest.
Later last week, Harshbarger said that because of the PPP loan, MMH is working toward getting the furloughed employees back to work.
White recommended that the hospital engage a consulting service to find, manage and take full advantage of the plethora of funding sources during the pandemic.
“There’s going to be a lot of strings attached, and you have to jump through the right hoops at the right time,” said board member Steve Young.
The board approved the extension of the hospital’s emergency declaration for another 30 days. It also approved a disaster policy and procedure that will allow for emergency credentialing during COVID-19.
Revenue down in April
MMH is now operating under the safer-at-home guidelines amid the COVID-19 pandemic. The good news is that elective procedures and surgeries are now allowed with strict adherence to public health policies.
However, prior guidelines with more limitations really hurt the hospital’s revenue cycle in the last couple of months.
White said that on the March income statement revenues were less than revenue deductions plus expenses, generating a net loss in the amount of $296,935.
He also projected that COVID-19 limitations would reduce outpatient revenue in April by $927,223 and reduce total patient revenue by $694,971.
White’s March report listed total days cash on hand at 123, up eight from 115 days the prior month. Operating days cash on hand was 51, which was up 10 from 41 days the prior month but is still out of compliance.
Board members ask for more financial oversight
Board member Mike Woodhead said that he has asked administration for some information in regard to financial activity at MMH.
“I think we need an oversight on what has been spent,” he said, noting that there are some things he would like verification on. “I would like to see where some of the huge expenses are.” He asked what is the return for the betterment of the facility?
Board member Gary Rahe said, “We are held responsible, but we were sold a bill of goods and that left us in some dire straits. I’m not directing it at Cathy. What do we need to do to right the ship?”
Both Harshbarger and White ensured the board that they are welcome to look at any records they would like to.
“I hope you can tell I’m an open book,” said Harshbarger.
“In my report, I’ve not held anything back. I’m more than happy to give you more,” said White.
Board member Angela Powell asked how the board could obtain information without bombarding administration.
Young said his preference was that the requests be funneled through the board and that the board members don’t all ask for the same information individually.
2 capital needs at top of the list
During her administrator report, Harshbarger updated the board on two capital needs.
The EMS department needs new LIFEPAKs at a total cost of $176,650. A grant can be used for 50% of the cost. The current LIFEPAKs are 20 years old, and two are inoperable.
Board members pointed out that it’s not good for equipment to get that old and suggested looking at other equipment around MMH to see what needs replaced in the near future.
The second need is to set up Experian Health software. It will cost $58,000 to implement it in October, with a monthly subscription of $1,895. However, Harshbarger said MMH will be able to eliminate a $2,000 monthly service that they aren’t even using because the software doesn’t fit their needs.
The capital budget had been previously approved, so these two projects were included in that and are now a priority.
Harshbarger told the board MMH is implementing a new platform called MD Staff, which will replace two ineffective and costly systems. It is used for privileging, credentialing, peer review and meeting management.
She also gave an update on MCN Contract Management, which is a web-based system.
Harshbarger said MMH has seven candidates for business office manager and six candidates for CFO.
Other business
In other business April 28, the board:
— Reviewed Policy 2.3 regarding medical staff relations, Policy 4.6 regarding board committee principles and Policy 4.7 regarding board committee structure.
— Heard a clinic update from Jayden Miracle.
— Heard a report on the Holyoke Community Childcare Initiative. Board liaison Woodhead reported that the placement of the proposed facility changed slightly. Plans are being made for it to be located north and west of the hospital.
— Heard a quality committee report from Jenn Cano.
— Approved credentialing for one initial application and eight reappointment applications.
— Held a 15-minute executive session for personnel.