BBGH Trustees approve 2016-17 budget
The BBGH Board of Trustees and hospital staff members present during their Monday night meeting were able to tour the Michael F. Essay Sr. Specialty Clinic and the Rehab & Wellness Center (RWC) renovation projects. In the left photo is the Specialty Clinic waiting area. The right photo is the PT/OT therapy gym of RWC. The top of the photo shows the almost solid wall of old conduit and pipes that required a change order to find a solution to routing problems they caused. The work needed to bypass the old conduit and pipes will result in about a month delay.
The Box Butte General Hospital (BBGH) Board of Trustees unanimously approved the hospital’s proposed operating and capital budget for 2016-2017 after hearing CFO Bridget Miller present the proposal during their regular meeting Monday, June 27.
Most of her comments were made during a special budget workshop meeting the Trustees held Monday, June 20 over the noon hour. At that time she said the proposed budget forecasts an increase in net assets of $1,211,724 by the end of the 2016-17 fiscal year, with projected total operating revenue of $42,059,266. Total patient services revenue is projected to increase $2,938,410 or 5.3 percent. Operating Expenses are projected to be $41,111,251 or 13.2 percent more than actual expenses for 2015-16. Included in the increase is a three percent across the board salary increase, along with 29 potential salary grade changes and 5.5 new full time employee positions. Ms. Miller said the salary increase was the result of a review of the most recent salary survey results submitted by the Nebraska Hospital Association, as well as data received from HRx, a Human Resources consulting firm based out of Nebraska Medicine in Omaha. The salary increase will go into effect during the first full pay period in July. Supplies and Minor Equipment expenses are projected to decrease $831,932 (12.5 percent) due mostly to fewer minor equipment purchases related to the new addition to the hospital. Trustee Randy Langemeier, CPA, commented after reviewing the proposed budget and doing some additional number crunching that he felt the budget was a good one, especially if all targets are met. He added that if it’s looked at from a financial/bank standpoint that the debt service ratio is good as well. BBGH CEO Dan Griess, FACHE, also had some good news for the board about the $28.5 million loan from the USDA for the new addition. He said the USDA office in Lincoln has notified the hospital that the original interest rate on the loan of 3.5 percent (locked in for 40 years), will be lowered to 2.75 percent, which will save the hospital around $6 million in interest payments over the lifetime of the loan. The Trustees unanimously approved the 2016-17 budget at their Monday meeting
The Trustees also conducted the following business.
The board congratulated Jacob Lux of the IT Department for being named the June Employee of the Month. They also welcomed new employees Mindy Green, Radiology Tech; Amanda Broderick, PBX Clerk; Kortney Hulsizer, LPN; Madison Smith, Scrub Tech; Samantha Andreasen, LPN; and Rachel Nerud, Pharmacist.
After approving the consent calendar, the board took a tour of the renovations going on in the Michael F. Essay, Sr. Specialty Clinic and The Rehab & Wellness Center (see photos). The tour lasted about a half hour with Mr. Griess the guide. He reported that the Specialty Clinic renovation was on schedule, with Beckenhauer Construction planning to turn over ownership to BBGH July 8. Furniture for the new clinic will arrive the week of July 11 and a tentative move date from the temporary Specialty Clinic location will take place the week of July 18 (please watch for further details as scheduling may change). While touring the new Rehab & Wellness Center renovation, Mr. Griess reported that issues with how service conduits were routed when the hospital was built in 1976 has caused a delay of about a month for the Phase I part of the renovation, with change orders requiring new air exchange ducts to be routed up through the roof, over the current fixtures and then back down on the other side. There was some good news for Fitness Center members when Mr. Griess informed the board that a new type of under flooring is being applied to the new exercise room that should stand up to the weight of fitness equipment. This will allow the Fitness Center to remain open; with current equipment temporarily placed in the new exercise area while Phase II construction occurs. Once Phase II is complete, the equipment will be moved to its permanent location, with the floor then completed in the new exercise room. Letters will soon be sent to Fitness Center members announcing that development.
After the tour and a board thank you to Dr. Tim Narjes (who was attending his last meeting as Chief of Staff), Mr. Griess presented his Governance/Strategy Focus on Succession Planning, with most of the discussion on the process needed when searching for a new CEO. “You never know what may happen … I might win Powerball,” he joked. His presentation focused on Strategy; Board’s Role; Process; Key questions to ask; Myths; Resources and Board References (organization chart and executive team job descriptions).
The board was asked by CFO Emiratis Tracy Jatczak to pass the Resolution to Authorize Banking & Investment Institutions. The resolution was needed due to a Tennessee financial institution being removed that had been added earlier in relation to Patient Focus, a patient billing company that is no longer working with the hospital. The Resolution also adds CFO Bridget Miller and Controller Krista Nix as authorized to complete business transactions on behalf of BBGH.
After the board unanimously approved all credentialing requests, they briefly discussed a retreat for Trustees scheduled for July 22 in Denver. They then entered executive session at 8:36pm to discuss personnel matters and re-entered open session at 8:57. The meeting was adjourned with no action taken. The next board meeting is Monday, July 25 at 7:00pm in the Sandhills Room. As always the public is invited to attend.
Box Butte General Hospital is an equal opportunity provider and employer.
