EARH expected to have turned a profit in 2018

The Board of Commissioners for East Adams Rural Healthcare (EARH) met for its regularly scheduled meeting on Feb. 28.

Dr. Sackmann reported that new PA-C Juliette Shapiro has been worked into the schedule as allowed. There is a delay in credentialing from some insurance providers, which Dr. Sackmann said is not unusual. He went on to explain their reasons for the drawn-out processes. At the beginning of the week, Ms. Shapiro was credentialed by about 45% of usual insurance providers, including Medicaid and Medicare. She is able to see all Emergency Room (ER) patients.

The front desk has a current list of insurance providers who have credentialed her and can assist patients who may prefer her services. Jennifer Pepperd (Chief of Nursing) reported that Julie is “working very hard in our clinic. She is an important part of our team and a very good addition.”

Dr. Sackmann noted that there has been an unusually high percentage of respiratory patients in the ER. He noted that air help is not always available and ground transportation must be used to transport patients. A discussion ensued about transport options and policies. When to fly is subject primarily to pilots, but also includes other factors: weather (at destination), availability of crews and fog.

If a helicopter is not an option, fixed-wing aircraft may be able to cover the transportation out of Ritzville’s airport. In a no-fly situation, there are many EMTs in the area to help with ground transport as a third back-up option. In some instances, it is possible to put firefighters on the EARH insurance in order to allow them to drive emergency vehicles.

CEO Gary Bostrom covered a number of items in his report. The Care Optimize program and training should be done by the end of March. Care Optimize was approved by the Board at the last meeting to expand their program, which EARH has been partially using and which requires training to fully implement at the hospital.

Eide Bailly LLP will send a staff member in March to discuss the long-term plan and to let the Board know how they are proceeding. The Eide Bailly employee will present training in “Revenue 101” for every staff member of the hospital, and the intent is to have everyone aware of the factors affecting profitability.

Taudd Hume, EARH’s land-use attorney, is working on paperwork to handle the Ambulance Association’s proposed land and building transfer—estimating about six hours to complete. He is working to come up with a letter of intent. Factoring in time for required hearings and a conditional use permit, the estimated time to complete the process is at best 90 days.

The Finance Committee is still waiting for a final 2018 audit, though at this time it still appears that the EARH will show a profit of over $200,000 for 2018. The main adjustment expected from the auditors is what EARH owes Medicare. In 2017 that was a significant amount, but Bostrom is hoping it will not be so much for the 2018 year.

The overall profit may drop some, but Bostrom thinks it will remain positive. He stated that he is “liking the movement, just not as fast as he’d like.”

One significant factor has been collections of monies owed the EARH; the finance staff is improving the process, with one important factor being making regular calls to debtors.