Hospital board hears draft audit report

SUPERIOR - During its March 27th meeting, the Mineral Community Hospital Board received a draft audit report showing a $196,448 operating loss for last fiscal year. Tom Dingus, Spokane CPA who presented the report, noted the hospital had 28 days of cash at the end of last fiscal year compared to 66 days of cash for Critical Access Hospitals in the western U.S.

Interim CEO Larry Putnam commented the hospital currently has only eight days of cash and it’s a struggle to meet payroll and monthly bills, even though nine employees were laid off on January 1.

However, outpatient lab and x-ray visits continued to drop during February, which wiped out any savings from the layoffs. Because of severe winter weather, it was tough for patients to get to the hospital and clinic for healthcare in January and February. More “foot traffic” in the Mineral Regional Health Center, lab and x-ray needed to increase revenue and fix the cash flow problem.

At town hall, the Mineral Chamber of Commerce and Senior Citizen Center meetings throughout the county, Putnam and interim Health Center CEO Cindy Stergar encouraged Mineral County citizens to use the medical services available at the health center and hospital. This needs to happen or the hospital emergency room, long-term care and outpatient diagnostic and rehabilitation services may shut down in the future.

Although Chief Financial Officer Cliff Case reported a loss of $99,635 for the first eight months of this fiscal year, he mentioned some good financial news as well. The hospital received a $52,000 bed tax payment, a $28,000 health center reimbursement for insurance and Dr. Ron Gardner’s colonoscopies, gastroscopies and surgeries are increasing.

Hospital board member Carol Billadeau said a person she knows didn’t know Dr. Gardner was doing scopes and surgeries and asked the hospital to get the word out.

Putnam also said the hospital hasn’t tapped its operating line of credit in more than five months and will receive about $140,000 in second-half Hospital District tax payments in May and June. This should help cash flow. The Board approved switching Worker’s Compensation insurance from the Montana Hospital Association to the Montana Health Network effective July 1 with three-year cost savings over $75,000. Putnam reported the hospital and health center are working on the sale and purchase of the clinic building using a health center grant, which may provide nearly $350,000 cash for the hospital.

County Attorney Marcia Boris is advising the health center and hospital on the process to get this done. Plus, the Board authorized Putnam to begin discussions with a local realtor to sell a house owned by the hospital no longer needed to house traveling nurses. A decision will be made at the April 24 board meeting whether to proceed with this sale. The hospital is also looking at starting a stress echocardiography ultrasound service in cooperation with St. Patrick Hospital that would help cash flow.

In addition, the board authorized laying off another employee. However, the employee may continue working at the hospital since there are two openings in the business office and she’s expected to apply.

In other business, Chief of Staff Dr. Roger Pafford recommended the Board approve hospital privileges for Dr. Bruce Mikesell. Dr. Mikesell lives in Alberton and provides emergency room and inpatient coverage at the hospital. He also fills in at the health center.

Putnam said the hospital and health center are looking at another round of town hall meetings in April in Alberton, Superior, St. Regis and DeBorgia to discuss county health care services.