Box Butte General Hospital: News- Trustees 06 10.

Budget for 2010-11 fiscal year approved by BBGH Trustees

06/28/10

Box Butte General Hospital will be entering a new fiscal year in July with a healthy balance from the just concluded 2009-10 fiscal year and a positive growth projection for the 2010-2011 budget, according to data released Monday evening to a full Board of Trustees. The financial statement for May indicated an increase of $172,316 in net assets, bringing the hospital year-to-date total to $1,939,720. That is a year-over-year change of $1,700,432. Financials for June, the last month of the fiscal year, will be presented at the July board meeting.

The highlight of the June 28 meeting was the approval of the budget for 2010-2011. BBGH Controller Lori Mazanec presented the proposed budget, as compiled from recently held workshops within the hospital and with the Trustees. The budget forecasts an increase in net assets of $1,531,157 for the hospital by the end of the 2010-11 fiscal year, based on a total patient service revenue projection of $36,654,453. Increased revenues of note come from new facility offerings (e.g. orthopedic total joint replacement procedures), increases in ancillary use, increases in outpatient volume, and changes of rate structure in a number of areas.

Total operating expense is projected to be $25,080,761, an increase of 11.1 percent over last year뭩 projected actual expense. This includes a projected increase of $750,398 due to a general across the board four percent increase in salaries, as well as salary adjustments for a number of employees to meet new salary grade changes, and the planned addition of six new employees. Also included is an expected $1,078,828 increase in employee benefits, due partly to the raise in salaries and partly due to an anticipated increase in overall costs for the self-funded health insurance plan. The expense budget includes a 14.8 percent, or $104,559 increase in maintenance and repairs; a projected increase of $298,517 in anticipated provisions for bad debts; and a minor equipment request increase to $241,830 from $205,849 last year. The capital budget proposes $885,448 in new equipment and building components, compared to $701,433 last year.

The Trustees unanimously approved the budget request for 2010-2011.

In other business, the Trustees:

Recognized Special Services Department staff member Pat Behn, LPN, as June Employee of the Month. Also recognized were new employees: Tammy Berry and Ann Weishaar, both Purchasing Assistants; Stasha Escamilla, Environmental Services; Colleen Flynn, Patient Finance Assistant; Lucia Beraun, Cook Assistant; John Argyle, Pharmacist; and Kaitlin Magnuson, Cook Assistant.

Approved the consent calendar as presented.

Heard the monthly quality management report from Special Services Director Mary Mockerman. Ms. Mockerman discussed The Joint Commission Critical Access Hospital (CAH) standards in two areas: Provision of Care, which has 47 standards, and Medication Management, which has 22 standards. The Provision of Care Standards were broken down into four categories: Plan, Implement, Special Conditions, and Transfer/Discharge. Medication Management standards are contained in eight categories: Planning, Selection and Procurement, Storage, Ordering and Transcribing, Preparing and Dispensing, Administration, Monitoring and Evaluation. Ms. Mockerman reported that a routine survey by The Joint Commission is pending for the Laboratory. She said The Joint Commission sent a letter in June confirming that BBGH is accredited for all services surveyed under guidelines for Critical Access Hospitals. The survey was conducted in the spring of this year. Ms. Mockerman presented composite scores for 2008 and 2009 in the areas of pneumonia, heart failure and outpatient measures. She said outpatient best practice measures had 100 percent compliance for that group, but that best practice measures for pneumonia and heart failure patients were not being met, mostly due to failures in paper (record) performance. Data was also presented on occupational exposure she has compiled for needle stick and eye exposure incidents.

Heard from Ms. Mockerman concerning the Monday, June 28, phone outage that hit a wide area of the Panhandle and the consequence of that outage for facilities providing health care services. She said BBGH was able to continue communications through faxes, e-mail, radio and satellite phone services for emergency purposes. BBGH, Regional West Medical Center, Kimball and Garden County were the four hospitals affected by the phone outage. Panhandle Public Health District kept facilities in the Panhandle updated on the situation.

Accepted a written Foundation Report received in their packet from Foundation Director Elke Rother.

Heard the financial report for May from Ms. Mazanec, as discussed at the beginning of this story. She said contributing to the positive bottom line in May were higher than anticipated outpatient and swing bed revenue, along with pricing updates and continued cost containment efforts. Inpatient revenue and clinic service volumes continued to lag behind projections. Overall, total patient revenue for May was $2,942,350, bettering the budgeted amount by $326,748. Operating expenses were $185,824 over budget for May, with provision of bad debt contributing $164,658 of that amount. Operating income was $157,636, bringing the year-to-date operating income to $1,648,013.

Heard from Practice Administrator Scott Alwin, who reported physician recruitment efforts continue. He said the biggest news in regard to Sandhills Family Center (SFC) has been the successful relocation of the clinic located on the west side of the Medical Arts Plaza over to the clinic on the east side of the Plaza. He said there are already improvements in efficiencies and communication as a result. Mr. Alwin also reported that SFC, Cow Country Health Center and the Hemingford Clinic will all soon benefit from a new database being installed that will interface with the hospital, providing real time scheduling and other data entry procedures that will greatly enhance efficiencies at all the clinics. 밊or example, if an individual happens to be in the hospital for a procedure, and lives in Hemingford, and wants to schedule a follow-up with the Hemingford Clinic, that can be scheduled at the hospital. It will immediately show up on the computer system in Hemingford,� he said.

Unanimously ratified the Medical Staff election of officers for 2010-12. New officers are: David Isom, MD, Chief of Staff; Terri Myers, MD, Vice Chief of Staff, and Timothy Narjes, MD, Secretary/Treasurer.

Heard from Chairman David Briggs, concerning a Western Regional Trustee Symposium he attended, along with Trustees Ted Bohlen, Larry Ring and CEO Dan Griess. The Symposium was held in Denver, June 9-11. Mr. Briggs said the meeting was well worth the time, and urged everyone to attend the Symposium in Omaha next year.

Heard from Mr. Alwin, who reported a Rural Health Clinic Audit took place for Cow Country Health Center (CCHC). He said some deficiencies were found, but that the audit was passed with many complimentary statements made about the operation at CCHC. The deficiencies were minor, and several have already been addressed.

Conducted the monthly credentialing requests, with a lengthy list of physician requests approved.

Accepted a written Medical Staff Report from Dr. John Ruffing.

With no further business, the Trustees adjourned at 8:02 p.m. The next regular meeting will be held Monday, July 26, at 7:00 p.m. in the BBGH Alliance Room. As always, the public is welcome to attend.