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By Michele Smith
The Times 

Hospital Renovation Nears Completion

 

Michele Smith

New main entrance, parking, and signage at the Dayton General Hospital.

CCHS will welcome applications from displaced Walla Walla General Hospital employees

DAYTON-Phase 3 of the Dayton General Hospital renovation and enhancement project will come to an end in July. The total construction project is 83.57% complete, said CEO Shane McGuire at the June Hospital District Board meeting.

"The parking lot is finished, and the new signs have been placed at the entrance. The new nurse work area is up and running in the Emergency Department. The lab has been cleaned, and supplies are being moved. Lab equipment vendors will be moving equipment during the second week of July and the business office will be moved the first week of July. Temporary walls will be placed on July 10, to get ready for Phase IV and V demolition," said McGuire said in his report.

"We have $107,000 of NSS, in addition to the $54,000 of our contingency left. Those funds can be used on other places on the project," said McGuire.

Outreach and Business Enhancement Initiative

McGuire told the commissioners that with Providence and Walla Walla General Hospital ceasing their membership acquisition talks, 400 employees at the hospital will be out of work, causing anxiety for them, and for their patients. They will be welcome to apply for work at CCHS, and receive care at CCHS, he said.

"We're definitely going to pull out the red carpet," he said.

The District has been working to bring contract costs under control by replacing contract nurses, McGuire said.

McGuire attended the nine-member Greater Columbia Accountable Community of Health meeting, in the Tri-Cities, on June 15. The goal is to provide a shift in healthcare delivery from volume to value, with a focus on population health and savings to Medicare, he said.

McGuire said he is in talks with a local massage therapist and an acupuncturist to create a wellness center on site by September 1. Bringing a Licensed Master Social Worker on board, is also in the works, McGuire said.

McGuire asked the commissioners to consider spending to construct a hyperbaric facility at the hospital. He told them he has received a bid of $211,464 to build the hyperbaric service suite and oxygen plant. His proposal was to use $130,000 from the construction contingency fund, and obtain a small loan to pay for the rest.

"I want to align us with a service line nobody else is doing and get referrals from other places, because this hospital is hard to keep open with 5,800 bodies in the hospital district," McGuire said.

McGuire said there is an opt-out clause in the contract, which would allow the District to keep the oxygen plant for facility use.

Hospital District CFO Cheryl Skiffington expressed some concerns about the proposal based on the recent hospital auditor's report indicating how highly leveraged the District is for long-term debt, compared to other critical access hospitals, who have 20 million dollars in revenue, or less.

"I think it is a great idea. I think it could be good for us, but I question the timing," she said.

Skiffington said she recently paid $115,000 to the hospital construction contractors, with $6,000 left in the account. She is not allowed to go below $350,000, and $160,000 is to be held in reserve, she said.

However, realistically, another CREA, five-year, low interest rate loan, wouldn't be noticed that much, she said.

"If $150,000 is left from the construction project, I agree in the concept as well," Skiffington said.

Talks will continue at the next District Finance Committee meeting, and final action may take place at the July board meeting.

Cash flow and financial statements

"We were able to move the needle in a positive direction on some financial indicators in May," McGuire said.

"Cash improved by 118%, going from $484,711 in April to $1,060,118 in May. Accounts receivable dropped by nearly 10%, showing strong collections. The error log was under $40,000 for a period in the month, down from over a million dollars. Claims on the error log need to be fixed before payment by payers can be received. Accounts Payable dropped nearly 20%. Days cash on hand improved by 85%. Year-over-year gross revenue has increased by 35% while year-over-year expenses have increased by 31%. We have a budgeted year-to-date operational loss of $684,755 and we are currently at $573,413, leading to a net/net positive bottom line after tax revenue of $184,910.00," said McGuire.

Action items

A motion was made and carried to approve the surplusing of some health fitness machines, with a value of around $400.

The commissioners approved the purchase of a fiber optic laryngoscope for evaluation of swallowing, to be used by Stephanie Painton, who is the speech pathologist, and for use in the emergency department by medical staff. The cost is $30,000, and includes training.

 

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