Chiller discussion leaves a chill in the air
A new $300,000 chiller for Melissa Memorial Hospital was ultimately approved by members of the East Phillips County Hospital District Board of Directors at its Tuesday, Nov. 24, meeting at Phillips County Event Center.
However, board members made it clear they don’t like surprises, especially those with that kind of price tag.
Due to expansion projects at MMH, the current air conditioning system cannot meet the needs of the large facility. For the past two years a cooling tower has been rented for $44,000 a year so that adequate temperatures could be maintained in the hospital.
MMH Chief Financial Officer David Applewood said a new chiller is included in the 2021 capital budget; however, the cost will go up 6% on Jan. 1, 2021. With the board’s approval, MMH can get it at a cheaper price as long as the contract is signed soon.
The cost for the chiller and installation is $250,000, and a concrete pad and electrical work will cost $50,000.
Applewood said it takes 16-17 weeks for the chiller to be built, with installation planned for April 2021.
Even though the old chiller is not sufficient, it will be maintained so that it can be used as a backup.
Board member Steve Young spoke up to make sure that the new chiller will be big enough to run everything by itself and that there will be some cushion if there should be any more expansion at MMH.
Over the years, the board has gotten a lot of surprises on capital projects, said board member Gary Rahe. “This is exactly what we’ve been dealing with,” he said. “Here we are, $88,000 later, and we’re finally making a decision.”
Rahe commented that MMH needs people who can identify long-term needs.
The board members aren’t the ones who work there, added board member Mike Woodhead. “We knew two years ago it was a problem.” He would like to see plans that look ahead one year, three years, five years and seven years. “We don’t like surprises,” he said.
Applewood, who recently did a walk-through of the facility, mentioned that the roof will probably need replaced in the coming years and the paving of the parking lot has been an ongoing issue.
Board member Angie Powell said it would be good to have board retreats to work through some issues like these so that they don’t sneak up on them again.
MMH sees 6 COVID-19 deaths
Other MMH employees filled in to give the administrator’s report for CEO Cathy Harshbarger in her absence.
So far, MMH has experienced six deaths related to COVID-19, all from the elderly population, said Lane Looka, vice chief of staff.
At the time of the meeting, MMH only had one COVID-19 patient on the floor.
Earlier this fall, MMH agreed to take in COVID-19 patients from Devonshire Acres, a long-term care facility in Sterling. Looka said those patients were kept completely separate from other patients at MMH. “It came with some headaches, but it was a good learning experience,” he said.
Applewood pointed out that MMH is able to bill the Devonshire patients for their time at MMH. “That’s a positive on the financial side,” he said.
In regard to safety concerns, Looka said that as long as MMH staff stay 6 feet away from COVID-19 patients or wear personal protective equipment, it is completely safe. He also said some visitors are being allowed in the hospital as long as they are wearing appropriate PPE.
At the highest point, 11 MMH employees, including two providers, were not able to be at work due to COVID-19 exposure or positive test results.
Looka also briefed the board on a new public health order that was put in place for Phillips County while it remains in Level Orange on the state’s COVID-19 dial.
Jenn Cano, director of quality and infection prevention, reported that the Hospital Transformation Program has been pushed back due to COVID-19. The idea is that hospitals will be able to collaborate to meet certain measures and receive an incentive payment.
She was happy to report that MMH achieved the highest tier for the first time in the 2019 Hospital Quality Incentive Payment Program. This qualifies MMH to get the maximum amount of program money from the state. A different set of quality measures are assessed each year.
Applewood rounded out the administrator’s report with a review of the 2021 health benefits for MMH employees.
2021 budget presented
Applewood went through some highlights of the 2021 budget with the board.
He pointed out there’s no rate increase for 2021. The eye clinic and dental clinic were eliminated, and chemotherapy was expanded in addition to adding two new providers to the budget.
The bottom line is $100,000, and the 2021 capital budget totaled $997,000, which includes a $200,000 contingency that can be used if necessary.
Of course, Applewood said that there are still a lot of unknowns in regard to the budget and COVID-19.
In his report on the financial statements for October, Applewood said it was a good month. MMH was compliant in all areas of Policy 2.5.
Total revenue was $1.9 million for the month, and total expenses were $1.7 million.
Total days cash on hand was 313, a decrease of five days from the previous month, and operating days cash on hand was 122, a decrease of six.
Applewood also explained to the board how MMH is working on bringing up its clean claims rate. The goal is that claims can be paid with no touches from staff members. MMH is sitting at 69%, and Applewood would like to see it get to around 90%.
Other business
In other business at the Nov. 24 meeting, the board:
— Reviewed policy 4.9 regarding self-monitoring of board performance.
— Approved credentialing for three initial applications and 13 reappointments.
— Heard a Quality Committee report from Cano.
— Heard a report on the MMH Foundation’s 2021 Legacy Event, which has been put on hold. A virtual raffle ticket drawing is in the works.
— Heard an update on the Holyoke Community Childcare Initiative. More grant opportunities are currently being sought.
— Extended a declaration of local disaster emergency for another 30 days.