Hospital district may need more money
Hospital district has reserve funds; funding options discussed
Staff reporter
Marion County Hospital District #1 board members were told Wednesday additional funds will be needed for the transition.
Banner Health System, the current management company for St. Luke Hospital and Living Center, is not renewing the management contract with the hospital board.
The board hired Quorum Health Resources to assist with the transition and management of the facility when Banner's contract ends Dec. 31.
Tom McCall and Wayne Schultz of Quorum were at the noon board meeting to discuss their findings.
"The biggest impact will be the time span between the billing of services and cash flow from the payments of the services," said Schultz.
Board members were told by Quorum Health Resources an additional $500,000 to $900,000 will be needed for start-up operating expenses.
The board anticipated the news and was not surprised with the outcome.
Some funding will come from the hospital district's reserve funds. Even though the hospital district appears economically viable, additional funding may be needed.
Funds could come from an increase in the mill levy for the hospital district, loans, or a bond.
Quorum also suggested a long-range plan, which must be completed as soon as possible.
A meeting will be scheduled between the hospital district and the transition attorney to discuss a variety of issues.
Schultz suggested a community fund-raiser.
Peggy Blackman, board secretary, said she has thought about that option.
"The community needs to realize the hospital belongs to the community," said Blackman. The economic benefits will be significant, added Blackman.
Janice Case, ladies auxiliary president, said she was a part of the first fund-raiser for the current hospital building.
"We went house-to-house and canvassed for money," said Case.
Eileen Sieger, auxiliary member, said the community takes the hospital for granted.
"Anyone relocating to a community looks at housing, schools, and hospitals," said Schultz, emphasizing the importance of a community hospital.
Martin Tice, hospital board member, asked the consultants the time frame for hiring a chief executive officer and a chief financial officer.
"Sixty days prior to the transition an interim CEO can be hired," responded McCall. "It's important for the board to take the time needed to hire the right person."
Discussion followed regarding the criteria for hiring, including residing in Marion.
McCall agreed it was important. "It's important for the CEO to live in and be a part of the community," said McCall.
A five-minute executive session was requested with Quorum to discuss non-elected personnel. The meeting resumed with no decisions.
Board members discussed the importance of finalizing the date of the acquisition.
Hospital personnel voiced the need for a date to be determined so other steps can be taken for the transition.
The hospital district may be able to take over operations as soon as Oct. 1.
Blackman commented she had contacted the Kansas Health Foundation regarding a grant.
In other business:
— Hospital district financial activity for March was reviewed and approved. Total expenditures were $29,268. Total inflows totaled $316,506.
— Hospital personnel will have a fund-raiser during Chingawassa Days. A Dinky Duck Race is being planned. A person can adopt a plastic duck for $5. During the festival, the ducks will be put in Luta Creek. The first duck to cross the finish line is the winner.
Donations have been gathered from area businesses. The funds will go for hospital transition costs.
— St. Luke Foundation March financial activity report was submitted and reviewed. There were no expenses and there is a balance of $544 in the checking account and $510,423 in the investment account.
— A draft of proposed amended bylaws for the hospital district were distributed. No action was taken.
— A decision was tabled regarding a lease termination date between the hospital district and Banner Health Systems.
— A 30-year-old portable x-ray machine was replaced. The purchase price is $18,000 which Banner paid. Hospital board will purchase the equipment at the time of transition.
— A 24-hour telemetry recall module also will be purchased by Banner now and the district later.
The next hospital board meeting will be the annual meeting at 7:30 p.m. May 13, clinic basement.
Two board members will be elected and the board will consider the adoption of amended bylaws.
