MRMC has good month

Magnolia Regional Medical Center had “a very good month with lots of things to be proud of” in August, Molly Burns, Board of Commissioners chairman, announced Monday during the board meeting.

Burns said the hospital “had a good strategic plan” in place, and thanked everyone for their work. She announced that the value-based purchase rating of the hospital has gone from 68.64 percent to 74.33 percent. “That is an excellent increase, that’s over the achievement threshold and a giant step toward the benchmark,” she said. “That’s a very good sign of improvement.”

Roxanne Stewart, chief financial officer, reported that inpatient census was down in August. There were 108 surgeries (15 inpatient, 63 outpatient, 30 scopes), 906 emergency room visits, and 16 newborns.

MRMC had a positive EBIDA (earnings before interest depreciation amoritization) of $33,365 for August. There were no withdrawals from the sales tax fund in August, Stewart reported. Year-to-date sales tax revenue is $542,970.

Margaret West, chief executive officer, reported the hospital’s contract with UAMS came up for review July 1. She said hospital officials and UAMS officials have met and discussed some of the issues.

West said that UAMS has requested MRMC assist with recruiting a potential physician by loaning approximately $50,000 for pay back of some student loans. She explained that UAMS had extended an offer to a candidate. “She’s been out of the residency program a couple of years. She does family practice and obstetrics, and she is very interested in assuming a faculty position here,” West said.

“The issue at hand was the fact that particular hospital (where the physician is employed) was part of a federal program that did pay back for student loans and if she were to leave prior to her commitment time, she would owe them somewhere around $48,000 and $50,000 that would have to be paid back,” West continued. “They approached us with the fact they would like us to loan the money to them to handle it to get her here.”

West added if a contract was signed the doctor could possibly be here by January 2017, “and we need her desperately.”

“I would like to entertain the idea we do support UAMS in trying to help them get this physician here,” West said, noting that UAMS would be responsible for re-paying the hospital.

“Basically you’re just saying they want us to cover a loan?” asked Commissioner Steve Jennings.

“Correct,” West replied.

The board approved this unanimously.

Commissioner Dr. John Alexander Jr. noted that “most all incentive programs for new doctors include some type of payback or loan foregiveness.”

Board memers approved a draft of the 2017 operating budget, presented by Stewart.

For the capital budget, Stewart reported $1,197,708 for various IT equipment and software upgrade.

Burns noted that “some of this we probably have no choice” but to upgrade.

“I understand the capital needs here,” said Jennings, asking “is this budgeted into our current rate of income overall?”

Stewart replied these are all capital items and will be depreciated, but are not budgeted.

Jennings then asked if there was “a rainy day fund where we’re saving for these things ahead of time?”

West replied that sales tax funds have been used. “We’ve not been using it for basic operations so that’s what we’ve been using our sales tax funds for.”

Board members approved the capital budgtet, with Jennings voting “no.”

Commissioners Shawana Reed, Wally Wood, Angie Eaves will serve on a nominating committee for board officer elections in October. Burns announced that she would be stepping down as board chairman.

West updated the board on the Health Resources and Services Administration (HRSA) grant which was written four years ago for $450,000. The grant ended July 31 and MRMC still has $82,925. This will be used to pay for a care coordinator another year and purchase some software.

She reported that a check for $42,286 had been received from the Arkansas Hospital Workers Compensation for the years 2006, 2011, 2013 for minimal losses incurred.

West said that MRMC will continue to provide meals to the Kids First program at UAMS, as they have done since 2001. Meals are provided through HHS (hospital’s dietary service). “We bill them $4.70 for every meal; we pay HHS $2.60,” she said.

West said the 340-B retail plan is being implemented, where the hospital works in conjunction with local participating pharmacies. This is to begin in January 2017.

In other business:

•The board adjourned into executive sessison to discuss a contract and salary for a new chief executive officer. West is scheduled to retire in December. This morning, Burns said the board discussed a contract and pay scale, and are currently negotiating a contract, but no one has been hired at this time.

•The next meeting is Monday Oct. 24 at 12 noon.

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