SPARTA COMMUNITY HOSPITAL DISTRICT BOARD MEETING MINUTES Date: June 19, 2018 Members Present: Dennis Ernsting, Kevin Wilson, Chris Haury, Gary Stephens, Kay Hapke, Alene Holloway, Lynette Jalivay, Claudia Kerens and John Clendenin. Others Present: Joann Emge, Angela Oathout and Paul Mueller Members absent: None Meeting called to order at 7:00 p.m. by Mr. Ernsting Item Discussion Action, Resolution, or Follow-up Approval of Minutes Mr. Ernsting presented Board minutes from May 15, 2018 Ms. Holloway made the motion to approve the meeting minutes and Ms. Kerens Financials Mr. Stephens shared the treasurer s report. Ms. Kerens approved the treasurer s report subject to audit, Ms. Hapke Paul Mueller discussed the Operating and Capital budget for FY 2019. Paul Mueller shared the financials for the month of May, 2018. Balance Sheet Cash and Investments Cash increased $136,033 or 1% in comparison to April. Day s cash on hand increased to 145. We measure favorably to the performance indicator established at 90 days. Accounts Receivable Total system gross accounts receivable decreased $1,106,183. Total system Days in A/R (excluding claims reimbursed by the State of Illinois) increased from 66.9 in April to 69.4 in May. Our performance indicator is 62 days. Hospital patient gross accounts receivable decreased $1,208,205. Hospital Days in A/R (including IL State) decreased from 87 in April to 84 in May. Hospital Medicaid gross receivables are $3,601,116 Hospital gross receivables from State of Illinois self-funded insurance plans for its employees and retirees is $1,477,151 Of the hospital gross A/R, 44% is greater than 90 days old from discharge, with 46% and 46% of Medicaid and the State of 1
Financials Cont d Physician s Report CEO Report llinois self-funded insurance plan greater than 90 days, respectively. Clinic gross accounts receivable increased $112,938 or 8%. Clinic gross A/R is 2.6 times current clinic revenue. We measure unfavorably to the performance indicator of 2 time s current revenue. Account Payable Accounts payable increased $17,126. Current month has 12 days non-salary expense in A/P, April had 9. We measure favorably to the performance indicator of 30 days. Income Statement Revenues Inpatient revenues decreased $49,539 or 21% compared to April. Outpatient revenues increased $324,003 or 9%. Emergency service revenues increased by $204,588 or 13%. Swing bed revenues decreased by $23,837. Physician office revenue increased by $6,078 or 1%. Total system gross revenues increased $461,293 or 8%. System net revenues increased $212,360 or 9%. Gross revenue per calendar day is $204,567 vs. $205,174 budgeted. Allowance of revenues is 53% vs. 52% budgeted. Total system gross revenues, year-to-date are $139,373 or 0% over budget. Expenses Salary and fringe benefit expenses decreased $228,369. Our performance indicator is 50.5% of net patient revenues; salary and fringe benefit expense is 58% for May. Bad debts, we measured unfavorably (6.5%) to the performance indicator of 5% of gross patient revenues. Total expense per calendar day is $88,633 vs. $94,040 budgeted.. Dr. Wood was unable to attend. I. FINANCE A. Revenue 2
Audit to begin in August rather than September as in years past. Expenses for Approval Expense Approval 1. T-system upgrade (ED Electronic Medical Record) o $76,429. year 1 o $33,364. Year 2-5 o Software upgrade soon Hardware Replacement to be completed in future. 2. PAC (Digital Radiology System) o $97,160 Service - $36,336. /year Starting in October. 3. Redundant AC MRI Mechanical Room o Redundant AC MRI Mechanical Room HSG - $31,200.00 4. D and O Coverage o Current Cost - $25,270.00 o Renewal Rate - $25,676.00 Future Expenses for Approval: 1. Phone System Our current contract will expire in April of 2019 and we will seek bids for a replacement system. 2. Nexus Switch $15,244.21 Additional point of power to increase redundancy for network integrity. 3. Replacement Computers $21,694.36 to replace computers in various departments that will be aged out of service. 4. East Wing Renovation Continue to determine our need before we seek bids. Bidding Policy and Procedure, Joann discussed the newly developed policy that we follow for the Formal bidding process. Joann shared that we are considering the purchase of a 3-D mammography machine and would like to recommend this as The next fundraising campaign for the Hospital Foundation. 3
Prevailing Wage: The information has not yet been updated and will be presented to members of the board for approval once the information for this year is available. Joann discussed the organizational goals and the focus will be on increasing patient satisfaction and increasing the patient panel size for the PCP s. II. QUALITY Studer: Shona Salzman with Studer Group will be onsite in July and will present to the Board of Directors during the regular session. Performance Improvement Plan for FY 2019 for review and approval. At Home Health in 100 th percentile in Illinois for overall rating of care. III SERVICE: Contracted Services List was presented to the board of directors for review and approval. Recruitment Visit Dr. Elfedaly General Surgeon was onsite to tour the facility. He is interested and discussion will continue to bring him aboard; tentatively within the next 6 months. IV. PEOPLE 1. The employee engagement survey was conducted and there was 88% participation. Our overall score was 4.15 or in the 52 nd percentile which was an increase over last year s score in the 19 th percentile. 2. Employee of the Quarter information and ballots were provided to the members of the board to choose the new employee of the quarter. Executive Session Paul Mueller left the meeting at 7:35 Mr. Stephens made a motion to go into Executive Session at 7:35 p.m. for the purpose of discussing Employee Matters, Mr. Clendenin seconded. Motion carried. Regular Session Mr. Stephens made the motion to return to regular Session at 7:45 p.m. Ms. Hapke seconded, Motion carried. 4
Minutes Committee Reports Approval of Expenditures Executive Session minutes from: Review of Executive Session Minutes: May 15, 2018 December 19, 2017 June 20, 2017 December 20, 2016 November 17, 2015 June 16, 2015 December 16, 2014 Quality Council: Ms. Holloway shared the highlights from the May 2018 Quality Council Meeting. Finance Committee: Mr. Stephens shared the highlights from the Finance Committee meeting. Approval of Medical Staff Applications: Credentialing Appointments (Action): Johannes Buiteweg, M.D. Radiologist Thomas Cahill, M.D. Cardiologist James Thomas, D.O. Emergency Department Re-appointments: (Action). Pavan Gupta, M.D. Cardiologist Craig Vinch, M.D. Cardiologist Emily Boyd, M.D. OB/Gyn Maqbool Ahmad, M.D. Ophthalmology Expenses for Approval: Ms. Kerens made the motion to approve the minutes from May 15, 2018 Ms. Hapke Mr. Clendenin made a motion to release the minutes from December 19, 2017, and June 20, 2016, Ms. Kerens seconded Mr. Clendenin made the motion to defer the minutes from December 20, 2016, November 17, 2015, June 16, 2015 December 16, 2014. Ms. Kerens seconded Mr. Clendenin motioned to approve the appointment and reappointment applications and Ms. Hapke seconded, motion carried. 1. T-system upgrade (ED Electronic Medical Record) o $76,429. year 1 5
o $33,364. Year 2-5 o Software upgrade soon Hardware Replacement to be completed in future. 2. PAC (Digital Radiology System) o $97,160 Service - $36,336./year Starting in October. 3. Redundant AC MRI Mechanical Room o Redundant AC MRI Mechanical Room HSG - $31,200.00 4. D and O Coverage o Renewal Rate - $25,676.00 Approval of Slate of Officers for 2019 FY: Kevin Wilson Chairman of the Board John Clendenin Vice Chair Gary Stephens Treasurer Dennis Ernsting Secretary Mr. Stephens made the motion to approve the T-System upgrade for $76,420.00for the first year, $33,364. For years two through five. Ms. Kerens Mr. Stephens made the motion to renew the PAC contract for a cost of $97,100 and annual service agreement for a cost of $36,336 yearly. Ms. Kerens seconded Mr Stephens made the motion to approve the cost of the redundant air conditioner for a cost of $31,200. Mr. Clendenin Mr. Stephens made the motion to renew the D&O Coverage for a cost of $25,676.00. Ms. Holloway seconded Ms. Kerens made the motion to approve the FY 2019 officers, and Ms. Hapke Approval of the Performance Improvement Plan 2019 Approval of the Formal Bidding Policy and Procedure. Ms. Kerens made a motion to approve the 2019 Performance Improvement Plan and Ms. Hapke seconded, motion carried. Mr. Clendenin made the motion to approve the Formal Bidding policy and procedure, Ms. Kerens seconded and motion carried 6
Approval of the Contracted Services List Approval to renew CEO Contract as discussed in executive session Approval to move the August Board Meeting from the regularly scheduled third Tuesday; August 21 st to the fourth Tuesday; August 28 th, 2018 Ms. Kerens made the motion to approve the contracted services list and Mr. Haury Mr. Stephens made the motion to approve the renewal of Joann Emge, CEO s contract as discussed in executive session. Ms. Kerens seconded and motion carried. Mr. Stephens made the motion to move the meeting to August 28 th, 2018 and Mr. Wilson seconded, motion carried. Adjournment A motion was made by Mr. Wilson to adjourn at 8:00 pm. Ms. Kerens Dennis Ernsting, Chairman of the Board Chris Haury, Vice Chair 7