Anticipated expenses take toll on hospital budget
Hospital actively pursues an additional physician
Staff reporter
The transition to independent operation is nearly complete at St. Luke Hospital. With independence comes expected cash flow issues.
Board members of Marion County Hospital District #1 heard reports Thursday from officials regarding the financial status of the hospital and gave authorization to hospital officials to use district certificates of deposit as needed.
Kevin Cronkleton, chief financial officer, reported a temporary "loan" from St. Luke Foundation to pay the networking and computer upgrade company.
The hospital had applied for a lease-purchase arrangement with a company several months earlier and was told the hospital would probably be approved. Just before the transition on Oct. 1, Cronkleton reported to the board the company was not interested in financing the project which had Cronkleton scrambling to find another company.
The company, CIT, was to approve or deny the application in the coming days. When approved, the funds will be reimbursed to the foundation and the hospital will make lease payments for the software and equipment.
Cronkleton reported twice monthly payroll is $80,000 per run. Two certificate of deposits are owned by the district and will mature in December and February, respectively. He recommended cashing in the CDs, totaling $500,000, early to cover monthly expenses as needed.
Several options were discussed including additional mortgages but all agreed cashing in the CDs would cost less than other options.
Financial information for October had not been completed at the time of the meeting due to the transition. A brief overview was provided by Cronkleton.
Monthly revenue was $588,341. Other figures were not accurate, Cronkleton stated, because of unusual expenses and adjustments from the transition.
The board approved $60,000 in accounts payable for routine operations.
The board also gave hospital officials authorization to pay operating expenses with a list reviewed at the monthly board meeting.
Other non-routine expenditures would require board approval.
The hospital's auditors will be contacted regarding authorization of officials to pay expenses up to a specific amount. A decision will be made at the next meeting.
Physician recruitment
Chief executive officer Tom Smith reported he had met with local physicians and was told another doctor was needed. Dr. Don Hodson told Smith he would make contact with prospective recruits. Hodson and nurse practitioner Ruth Reed were to attend a recruitment fair at the University of Kansas School of Medicine.
Smith said he and the doctors do not think a professional recruiter needs to be hired. However, pay guarantees and other considerations need to be considered by the board.
A list of possible enticements were distributed to board members for discussion.
The list included relocation expenses, partial repayment of student loans, salary payment guarantee, daily work load and emergency room coverage expectations.
The board agreed with Smith and will review possible incentives at next month's meeting.
In other business:
— Cronkleton provided an update of training and installation of software and equipment as part of the transition. He reported modules were up and running.
He suggested the board consider upgrading the pharmacy software which would cost $32,000 for installation and training.
— The hospital has been assigned an EIN (Employer Identification Number).
— Smith is completing a bioterrorism grant for training, supplies, and equipment. The hospital received $22,000 last year and was expecting the same amount for this year.
— Board member Peggy Blackman suggested a policy manual be written. The manual could include operations procedures and other information as needed. Smith said he would begin the process.
— A foundation report showed payments for $616. An investment account had receipt of a grant for $4,000, and two transfers to the hospital in the amount of $420,000, leaving a balance of $206,396.
— Protocol for special meeting notification was reviewed. Notification of special meetings is made to the official newspaper, the Marion County Record, and anyone who had previously requested notificaton.
— Carolann McFarland of St. Luke Integrated Health Care Clinic, reported the sign can be re-done for $200 by Jim Versch. Board president Gene Winkler previously had talked with McFarland about listing the hospital's emergency room and a directional arrow included on the sign.
McFarland said she thought it would be confusing for people. To reduce confusion, only services available at the site will be listed on the new sign.
— Smith said he attended an annual Kansas Hospital Association convention. The hospital was awarded a 50-year membership plaque with American Hospital Association.
— Debbie Craig of St. Luke Living Center, reported a support group was being formed with the first meeting planned for 7 p.m. Tuesday.
A social hour for community members to visit long-term care residents was being planned by the auxiliary, Craig said.
Christmas activities are being planned and employees of the living center are wanting to "adopt" a family in need of food and financial assistance. Employees also are wanting to provide gifts to residents for things that are wanted, not needed.
— Eileen Sieger of the hospital auxiliary reported a balance of $963.07 in the general fund. The special fund had a balance of $8,833 after deposits of $895 for pie sales at Old Settlers' Day picnic and a $2,500 donation from Banner HealthSystems.
A checking account has a balance of $9,796 and two CDs of $1,000 each.
— A 15-minute executive session was requested and approved to discuss personnel issues. The meeting reconvened and the board approved reimbursement of $700 to Smith for incidental moving expenses.
The next regular board meeting will be at 7:30 p.m. Dec. 9 in the clinic basement.
