Hospital district provides additional one-month of operational funds for Care Center

The Adams County Public Hospital District No. 2 Board of Commissioners discussed construction projects at the hospital, as well as the financials and an overview of operations in the district during the regular meeting on July 23.

Josh Hannum, returning Nursing Home Administrator of EACC, presented on the ongoing issues regarding collection from Medicare and Medicaid due to billing complications. Hannum explained the facility should begin collection Medicare payments in about two weeks. An account with the state system had not been established for the facility, resulting in the facility not receiving payments. Hannum believed by September, EACC should be having solid reimbursements and begin receiving regular payments.

The delay in billing meant the facility needed additional funds to operate over the course of the next month. East Adams Rural Healthcare had provided the facility with $600,000 for operations for three months. The motion passed when Eric Walker moved to loan $200,000 from the operational account to help the facility, with Jerry Crossler opposed.

Bostrom explained once the facility is profitable and insurance reimbursements are received regularly, EACC would reimburse the district.

The EACC facility is in the process of establishing a billing system, as the Life Care Centers of America removed the billing computers from the facility, as part of the donation agreement.

The facility is going to use CareVoyant and Hannum expects them to use the program for billing in September. By Oct. 1, the facility should also be able to input documents for state reimbursement through the computer, something the employees are now having to complete manually.

Gayla Ceremello also presented on behalf of EACC and provided the commissioners with a strategic plan to help the facility move forward. Her plan consists of seven priorities: leadership, compliance, survey readiness, policies/procedures, budget, reimbursement and marketing.

Along with the seven priorities, Ceremello also presented the barriers and a plan resulting to each point. She explained the strategic plan helps the facility focus on the immediate needs instead of trying to create a future vision of what the facility could be.

CEO/CFO Gary Bostrom presented briefly of the financials of the district, saying that the Accounts Receivable decreased by $540,951 in June. While revenue was over budget by $315,693 and deductions from revenue were under budget by $4,113, Bostrom noted the hospital had $1.4 million in cash collections during the month of June. Also, Bostrom added, the facility had collected nearly $700,000 to date in July.

Due to a request by the auditors, the hospital district transferred the donation of EACC, estimated at a value of $1,040,000, to EACC. The transfer shows a loss for the district, but shows as income for EACC. Bostrom said it shows the district having a loss for the month of $771,534 and a year to date income of $675,753.

Bostrom provided the board of commissioners with an update concerning the modular unit purchased by the district with the intent to expand the Physical Therapy department.

He said the Ritzville City Council denied the District’s request to install the unit next to the Physical Therapy building because the hospital is in a residential zoning area.

Taking into consideration the concern of homeowners in the area, the council denied the request but approved for the modular unit to be stored temporarily at the East Adams Care Center (EACC) facility.

Bostrom said they are looking into the possibility of placing the unit permanently at EACC as an extension of the Physical Therapy department, but the process could take months to run through the planning committees. In the meantime, Bostrom said the Physical Therapy staff members are looking into various plans to best utilize the modular unit for both the hospital and EACC.

In addition to ongoing construction projects, Bostrom said the maintenance staff are working to improve the aesthesis of the district’s services buildings outside of the hospital. Bostrom said they are painting trim on both the dental building, which house Physical Therapy, and the administration building.

The roof of the call house has been updated and completed, and work on replacing the roof at the administration building is awaiting completion of additional roof bracing to be installed, Bostrom said.

In regards to the construction projects, Bostrom said the final numbers for the elevator have not been received yet, but Leone and Keeble will begin working on constructing the elevator shaft.

During the week, the basement walls were being poured, while floor cuts and footing extensions are completed. The air handlers in the basement were also removed in preparation for the new air handlers to be installed on the roof in the next two weeks. Bostrom said steel work must be completed before the equipment can be installed, and the laboratory and nurse’s station will have to be closed for a few hours during the installation process as a safety precaution.

Bostrom also informed the board the audit process had been held up because of the installment of a new computer system last year. The auditor also needs all of the EACC information, and Bostrom is hopeful the report will be returned next month.

Dr. Marty Sackmann provided the board with an update regarding the quarterly review. With the installation of a new digital system last quarter, this quarter ran smoother as the providers had more working knowledge of the system. Sackmann said he believes in the future, the process will become even more efficient and allow the doctors to have more time to discuss patients and health records to improve the quality of service.

Sackmann also brought up the ongoing discussion regarding accepting mental health patients at the facility. After meeting with a reviewer and staff members, they unanimously agreed mental health patients would be best treated elsewhere, due to the limitations in space and personnel at the local facility.

He said this does not mean the facility cannot make the service available in the future, but currently the hospital should only continue to treat mental health patients in emergency situations and until they can receive transport to a better-suited facility.

During the Brenda Herr’s Chief of Nursing report, she updated the board she met with Covery’s to perform a risk analysis of the Emergency Room. She noted she is awaiting their report, and will update the board about the findings at the next meeting or after the report is received.

The Board of Commissioners’ next meeting is Aug. 27 at 5:30 p.m. in the Clinic Lobby. Aside from general business and updates, the board will also be discussing the Washington State Hospital Association’s Patient Safety Program and a potential Medicare Partnership Program.