Governance

Washington County Hospital
Board of Directors Meeting Minutes
Tuesday, July 27, 2010, 7:00 p.m.
Conference Rooms A and B

Members Present:
Dale Blohm, Chair
David Behr via teleconference
Jim Cange
Greg Engele
Victor Lopez
Bill Manier
J. W. Metcalf
Diane Nottmeyer
Rich Tomaszewski

Others Present:
Nancy Newby, CEO
Tammy Amizich, CNE (exited 8:20 p.m.)
Christine Bening, HR Coordinator (exited 8:20 p.m.)
Kim Larkin, CIO (exited 8:20 p.m.)
Elaine Matzenbacher, CFO
Julie Smirl, Coordinator, Harmony Program (exited 8:15 p.m.)
Jim Ledbetter, PremierCare, Inc. (exited 8:15 p.m.)
Clint Tees, PremierCare, Inc. (exited 8:15 p.m.)

Others Not Present:
Ruth Kellerman, QA Coordinator, excused
Marc Zerbe, M.D., Medical Staff President, absent

Called to Order:         7:00 p.m.
Adjourned:                 8:41 p.m.

Meeting Agenda
The agenda of the July 27, 2010, meeting of the Washington County Hospital Board of Directors was presented for review and approval. 

On a motion by Greg Engele and second by Bill Manier, the Board unanimously voted to  approve the July 27, 2010, meeting agenda.

Previous Board of Directors Meeting Minutes
Executive Committee Meeting Minutes
Finance Committee Meetings Minutes
Special Board of Directors Meeting Minutes
The following meetings minutes were presented for review and approval:

• Board of Directors, June 29, 2010. 
• Executive Committee, June 29, 2010.
• Finance Committee, June 10 and 29, 2010.
• Special Board of Directors, July 20, 2010.

On a motion by J. W. Metcalf and second by Rich Tomaszewski, the Board unanimously voted to approve the aforementioned meetings minutes.

Financial and Statistical Report
Elaine Matzenbacher, CFO, presented the Financial and Statistical Report for June 2010.  Highlights of the report were:

Total Patient Revenue was $2,179,344.  Total Provisions were $941,084.  Total Net Operating Revenue was $1,264,280.  Total Operating Expenses were $1,290,544.  Income from Operations was ($26,264), with YTD Income ($166,160).  Total Non-Operating Revenue was $34,339, with YTD Total Non-Operating Revenue of $65,832.  Total Income was $8,075 with YTD Total Income of ($100,328), as compared to a budgeted $13,914.

Additional noted items:

• June 2010 revenue was an average month as compared to June 2009 which was an exceptionally high revenue month.
• Salaries were 4.0% under budget in June.  
• Employee benefits were 18.4% under budget this month.   There were some additional health insurance stop loss credits this month.
• Total Operating Expenses were 1.3% under budget in June.

On a motion by Bill Manier and second by Diane Nottmeyer, the Board unanimously voted to approve the June 2010 Financial and Statistical Report.

IT Update:  Omnitech LIS and OPUS
Kim provided the following updates:

• Omnitech – LIS (laboratory information system)
• System went live on Monday evening, June 28.  Implementation went exceptionally well with a few minors issues which are being addressed. 
• Omnitech office is closed for a two-week vacation; however, staff are available to respond to user needs.
• Upon their return from vacation, they will wrap up this project.

• OPUS – IP (inpatient) EHR (electronic Health record)
• OPUS staff were on site for ABO (application build orientation) and training for directors and managers whose departments will be working in the clinical system.
• OPUS will be installed on WCH’s server this week.
• Managers will be testing over the next three weeks to identify workflow challenges which may be addressed prior to super-user training in August.
• This project is on schedule.

• In response to financial questions, Kim stated that vendor travel and training have been budgeted and there should be no additional costs for adjustments in this project package.

Ordinances No. 144 and No. 145
In compliance with Illinois Compiled Statutes, Elaine presented for approval Ordinance No. 144, “An Ordinance making appropriations to defray all necessary expenses and liabilities of Washington County Hospital District, of Washington County, Illinois, for the fiscal year commencing May 1, 2010 and ending April 30, 2011;”

and

In compliance with Illinois Compiled Statutes, Elaine presented for approval Ordinance No. 145, “An Ordinance amending the levy and assessment of taxes for the fiscal year beginning May 1, 2010 and ending April 30, 2011.”

On a motion by Rich Tomaszewski and second by Diane Nottmeyer, the Board unanimously voted to approve Ordinances No. 144 and No.145 for fiscal year 2010-2011 as presented.

Harmony Presentation
Julie Smirl, Harmony Program director, presented a one-year (April 2009-April 2010) progress report which covered the following topics (report on file):

Clint Tees, from PremierCare, Inc., gave the Board their financial analysis (report on file) of the program.  Clint used information from WCH’s interim cost report data that was through October 31, 2009, and estimated the last six months of the year.  His analysis showed the program had a net income for fiscal year 2010 of approximately $125,000.  This is due to the fact that the program is 100% Medicare and WCH is reimbursed 101% of cost for outpatient Medicare services.  Additionally, an allocation will be made to Harmony on the Medicare cost report for overhead above and beyond the direct costs of the program (management fees, supplies, etc.).  It is basically this overhead allocation that is generating the net income for the program.

Q&A/discussion ensued including, but not limited to, the following:

• Clarification of Harmony’s transportation service—it provides transportation to and from the program as needed; it is not a service such as SCT (South Central Transit).  This service cannot be used as an inducement to the program.
• Admissions—frequency and duration of services; average stay in program is six months, primarily group and individual therapy sessions.
• During the first year, 50 referrals resulted in 39 assessments and 32 admissions.
• Survey results showed that patients, their families and community have noticeably benefited from the service in this short time span.
• Privacy—all admissions sign a confidentiality statement.
• To date, there have been zero denials on any billing.
• This program has 22 sites nationwide, eight of which are in Southern Illinois.

Financial Analysis of Harmony
Elaine presented the Board with an analysis (report on file) prepared by an auditor from McGladrey.  The auditor used the interim cost report data from January 31, 2010, as well as the actual year-end revenue and expenses for Harmony.  This analysis showed Harmony’s net income from fiscal year 2010 was approximately $86,000.  It was explained that this net income is run through the Medicare cost report and is mainly due to the allocation of overhead to the program.

Although WCH has a two-year contract for the Harmony Program, Nancy asked that the program be evaluated at the end of the first year; therefore, the aforementioned presentation and reports were given.  Nancy recommended that WCH continue the program because it is a good, profitable and much needed service in the community.

Community Comments/Questions and Answers
In response to a reporter’s request, Elaine provided clarification regarding the first year’s net income from the Harmony Program being $86,000.

Closed Meeting
At 8:20 p.m. on a motion by Greg Engele and second by Bill Manier, the Board took a roll call vote to enter closed session under Open Meetings Public Act 88-621 Sections 2(C)(21).  Blohm AYE, Behr AYE, Cange AYE, Engele AYE, Lopez AYE, Manier AYE, Metcalf AYE, Nottmeyer AYE, Tomaszewski AYE.  Motion carried.

At 8:40 p.m. on a motion by J. W. Metcalf and second by David Behr, the Board took a roll call vote to leave closed session and re-enter open session.  Blohm AYE, Behr AYE, Cange AYE, Engele AYE, Lopez AYE, Manier AYE, Metcalf AYE, Nottmeyer AYE, Tomaszewski AYE.  Motion carried.

Board of Directors Closed Meeting Minutes
Executive Committee Closed Meeting Minutes
Special Board of Directors Meeting Minutes
The following meetings minutes were presented for review and approval:

• Board of Directors closed, June 29, 2010.
• Executive Committee closed, June 29, 1020.
• Special Board of Directors closed, July 20, 2010.

On a motion by Greg Engele and second by Victor Lopez, the Board unanimously voted to approve the aforementioned meetings minutes.

Adjournment
On a motion by Jim Cange and second by J. W. Metcalf, the Board unanimously voted to adjourn the meeting at 8:41 p.m.

Respectfully submitted,
Richard Tomaszewski, Secretary
Board of Directors

WCH Board

Administrative Team

Nancy Newby, Chief Executive Officer

Tammy Amizich, Chief Nurse Executive
Kim Larkin, Chief Information Officer
Elaine Matzenbacher, Chief Financial Officer

Christine Bening, Human Resources Coordinator
Ruth Kellerman, Quality Coordinator

>  2010 board meeting dates
>  Board of Directors agenda & minutes