Hospital board approves computer system update
Next meeting is at 7:30 p.m. March 11
Staff reporter
Marion Hospital District Number One met Thursday in regular session and approved a contract with CPSI for updating the hospital's computer system.
The updating is necessary when the hospital changes management companies in 2005.
The total cost is approximately $423,000. This includes the Marion County Home Health Care system. The cost to include home health is $27,500 but a discount is given by CPSI because of its affiliation with Quorum Health Resources, the new management company.
The exact amount was not available at the board meeting.
The system allows 60 users. A five-year contract has a monthly service fee of $4,550. This service will provide system upgrades and maintenance.
Kevin Cronkleton, facility chief financial officer, told the board the hospital currently is paying $3,200 per month for service to one accounting system. The $4,550 charge for all of the computers is fair.
The service also includes remote access for problem- solving, which eliminates the need for a technical person on-site.
Cronkleton said he sent the CPSI proposal to Quorum Health Resources for an opinion. Quorum said the hospital is much more automated than most smaller hospitals and anything less than this proposal would be a step backward.
The management company also said the cost is consistent with other proposals and could not find any concerns.
CPSI training will be on-site and ongoing. The board would pay 10 percent up-front, then pay 40 percent once the work is completed.
The remaining 50 percent would be held by the board until satisfied with the system.
David Fereby, sales and marketing representative with CPSI, was present Thursday evening and said the other 31 Kansas hospitals that were customers of CPSI have the same contract as he proposed.
Other hospitals with CPSI systems and services are McPherson, Emporia, Burlington, and Russell.
The board discussed the options to pay for the computer change-over.
Members were concerned about expending that amount of cash.
Doug Newman, chief executive officer, had received information from one company regarding leasing options. Newman will check with other companies.
In other business:
— Cronkleton reported the need for the replacement of the facility's riding mower with snow blower attachment.
After the last snow storm, Cronkleton said employees could not use the snow blower and were shoveling the snow by hand.
Cost estimates have been received by Cronkleton.
Deer Trail Implement, Marion, submitted a bid of $6,695 for a mower with a snow blower attachment.
Ag Power, Hillsboro, submitted a bid of $13,000 for a small tractor with a mower and blade.
Cronkleton also checked with two Club Cadet dealers in Topeka and Wichita.
The Topeka dealer made the offer of $5,500 for the mower with a $300 hospital discount and trade-in of the old mower. The mower would be delivered for free. The balance would then be $4,706.
The cost from the Wichita dealer was $5,250 for the mower and offered to sell the old mower on consignment with no guarantees.
Board vice chairman Kevin Fruechting asked Cronkleton if he had checked with Seacat Hardware, Marion. Cronkleton said he had and they could not attach a snow blower.
Cronkleton will further check the options and report them at the March board meeting.
— Approved hiring of attorney Martha (Marti) Ross, a partner with Wichita attorneys Foulston Seifken to assist the board with the transition and negotiations.
Winkler, Newman, and Cronkleton participated recently in a video conference with a Banner representative. They discussed the transition and it was suggested the board hire a health-care attorney.
Winkler said he interviewed Ross and she is familiar with both Banner Health Systems and Quorum Health Resources.
The cost will be $175 per hour. Ross also will assist with the board's bylaws.
— Newman reported the expense of a $1,200 valve on a piece of equipment, and Banner is accelerating the depreciation schedule of the equipment.
Banner is wanting to "zero-out" the account before the contract with the hospital district expires. This process will benefit the district, Newman said.
— Greg Bowers, treasurer, presented the January financial report.
Outflows for the month totaled $2,800. Net cash gain was $271,000. The checking account has a balance of $670, money market $663,000, and CDs totaled $500,000.
The CD at the Pilsen State Bank for $100,000 will remain at that bank because it offered the best rate of 1.72 percent for one year.
— Fruechting, foundation board representative, presented a foundation financial report.
The checking account has a balance of $544. The foundation started 2003 with $191,000 and had an income of $366,000 in memorial money.
The ending balance for the foundation is $509,000.
— Cheryl Connell, hospital employee and recording secretary for the board, suggested a fund-raising idea.
Connell suggested numbering plastic ducks, which people could "purchase" for $5. The "purchased" ducks would be placed in Luta Creek and then a duck would be drawn from the creek.
This event could occur during Chingawassa Days, said Connell, and be a fund-raiser for the hospital.
Winkler told Connell to talk with the Chingawassa Days Steering Committee about the idea.
— Newman said a committee needs to be formed to select the winning entry in the logo contest.
A member of the hospital auxiliary and hospital board needs to be on it as well as members of the community, said Newman.
The board recessed for a 35-minute executive session to discuss Banner Health Systems business.
The meeting reconvened with no decisions.
The next board meeting is at 7:30 p.m. March 11 in the clinic basement.
