KDH gets significant lower interest rate on new hospital loan

New CT to be installed in July

It was a full agenda for the Kiowa District Hospital Board at their June 22 meeting. President Pat Myers called the meeting to order with all members present including: Jeff Miller, Jim Parker, Chantae Simpson and Marcia Cantrell. CEO/CFO Janell Goodno also sat at the table as did Manor Administrator/IT Director Phillip Anton.

Other hospital personnel present were: Business Office Manager Tara Girty, Quality Manager/Interim Manor DON Brandy McKitrick and Comptroller Shannon Canaday.

KDH is getting a better interest rate for their revenue bonds for when they built the new hospital. Goodno said their bond counsel Kevin Cowan called to say the Public Building Commission (PBC) and Barber County Commissioners wanted KDH to be sure and take advantage of the better rate. The interest rate was over two percent on the 2014 bond rate for the original hospital. Now it's reduced to 0.5 percent. The board approved the Supplemental PBC County Revenue Bond Sublease No. 1 for reduction of the interest rate.

Giving an update on the KDH Daycare that is in the works, Goodno said they've found a building in Kansas City at Trader Homes that needs paint, etc., but will work for the daycare. She said they await fire marshal approval. KDH is still advertising for a director but has applicants for other positions.

The new CT Scan machine will be installed mid-July. The mobile CT truck will be parked where the MRI truck parks throughout July. Hutton is replacing the wiring and floor in the CT room

Hospital Administrator Updates on CARES Money, New Marketing Director

As CFO Goodno is working on the 2022 Tax Budget. There will be a tax budget hearing in August.

Goodno presented a draft update of where KDH is with CARES money. She, Canaday and the auditor are researching lost revenue for 2021. Goodno said the hospital didn't really didn't really experience lost revenue, however the manor did in the amount of about $150,000. CARES money can and will cover the manor's $150,000 loss.

Goodno said this leaves about $42,000 in Covid money. This will go toward work the Hutton Corporation of Wichita is doing at the hospital since they recently finished the hospital's new wellness and therapy addition. Hutton is doing in-patient wall protection projects which count as Covid infection control. They finished the last room the day of the meeting. They are also removing dirt from the east side of the building as there is a problem with standing water. She said the contractor has attempted to remedy a problem with standing water on the west side as well.

Through memorial money, Goodno said the east side of the building will eventually have an outside sitting area for employees. A canopy will shade a table sitting on a concrete pad.

Goodno said the new KDH marketing director is Bailey Ruthardt. She, her husband and little boy moved to Kiowa from Woodward. Ruthhardt will market for the manor; bring back the community newsletter; work on the KDH Facebook page; will coordinate patient/family engagement meeting, etc. They'll have outreach clinics in surrounding towns with blood pressure checks, etc.; and bring back Lunch and Learn town hall-like meetings with subjects like how to apply for Medicaid, etc.

The administrator told of the success of an all-staff leadership training June 17 that was paid by a grant.

Hospital and Manor Statistics and Financial Reports

Comptroller Shannon Canaday presented the May statistics and financial reports for the hospital and manor to the board. Total admissions at the hospital were 24. This resulted in 95 days of care of which 45 were acute and 50 were swingbed.

Outpatient visits totaled 636. Some of the departments with the most visits were: Physical Therapy, 121; Lab, 286; X-ray, 61; ER, 52; CT Scans, 32.

The hospital showed a financial gain of $199,551. That was derived from some of these figures: total gross patient revenue, $531,499; total contractual adjustments, $180,352 for net patient revenue of $711,851. With the addition of the 340B discount drug revenue at $24,699, total operating revenue was $738,520.

The hospital's total operating expenses were $616,693 for a net from operations of $121,827. With the addition of $77,724 (mainly tax dollars) revenue, the hospital's financial gain was $199,551 for May. Year-to-Date the hospital showed a gain of $583,606 at the end of May.

The Manor had 20 residents at the end of May and 16 residents the day of the board meeting. Total operating revenue at the manor was $115,962. Total operating expenses were $151,965. Net from operations was a loss of $36,004. The addition of $6,164 (of which $5,000 was tax revenue) curbed the loss to $29,840. Year-to-Date, the manor showed a loss of $426,114 at the end of May.

The comparative balance sheets for the hospital and manor show an overall gain of $157,492 at the end of May. Total liabilities and net assets are $13,485, 306.

Girty reported that the total gross accounts receivable were $1,155,314 in May. The average days in AR were 60. Total payments received were $507,282. She also presented bad debt accounts which the board approved turning over to collections. Girty took one financial assistance case to the board in executive session.

Goodno added that cash-on-hand will decrease because COVID money has to be spent by June 30.

The board approved the stats, payment of the bills and financials as presented.

Manor Report

Anton said they are doing lots of painting and cleaning at the manor and complimented the maintenance staff. “Our residents are getting out and enjoying,” the administrator said.

He noted that policies are under review for accuracy; INA, their access control company, finished work. The manor's focus is on marketing. McKitrick is doing “a great job” as interim DON and Anton said they have several new nurses. He is interviewing for a DON.

KDH Board Action

The board agreed to participate in a Healthier Hospital Pledge. Goodno said it's a five-year commitment that gives healthier options for snacks such as vege and fruit trays and water instead of pop. Goodno said they will partner with the Hometown Market in Kiowa.

This is part of the Barber County United through Pathways to a Healthy Kansas (Pathways), a Blue Cross and Blue Shield of Kansas initiative, to implement healthy recommendations. A grant will help pay for necessary equipment, etc.

Medical Staff Appointments were approved for: Nausheen Naveed, MD (vRad); Richard Steckley, MD; Gary Morsch, MD (DWC). Board approved Medical Staff Minutes and Quality Minutes.

Giving the IT Risk Report, Anton said their ransomware has “gone crazy as phishing is getting more specific.” He's upgraded KDH's firewall.

At the end of the meeting, the board held a two hour executive session to discuss non-elected personnel, contract/legal, strategic initiatives and risk management (RM). Upon return to open session the board approved the manor RM report; and one financial assistance case.

Upcoming Events

Wednesday June 30 is the KDH work night at Kiowa's Community Garden at 7 p.m.

The next board meeting is Tuesday, July 27 at 7 p.m.

The hospital foundation's 2021 Jeans and Gems Fundraiser is August 14. The evening features a steak dinner, silent

 

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