KDH Childcare Addition moving forward, grant received will fund 75%

At the June 27 monthly gathering of the Kiowa District Hospital Board of Directors, President Pat Myers called the meeting to order with board members present including: Jeff Miller, Jim Parker and Chantae Simpson. Marcia Cantrell was absent. Also present was CEO Janell Goodno; COO Philip Anton; Business Office Manager Tara Girty; Quality Manager/Manor DON Brandy Campbell; Hospital DON Robyn Whitaker; Manor ADON Kamri Theis, Facilities Director Brad Applegarth; Accountant/Biller Courtney Larson; RHC Manager Lacey Volker; Dr. Paul Wilhelm; Friends of the Hospital and Manor Foundation President Judy Schrock.

KDH Childcare Grant and Construction Update

KDH already had plans to extend their childcare with an addition project. As part of TRICARE, south central Kansas collaboration with Kiowa, Barber and Harper counties, KDH received part of a $1.7 million Childcare Aware grant. Kiowa County Economic Director and now also County Economic Director for Kiowa, Julie Lyon applied for the tri-county grant which showed strength and helped secure the grant.

Goodno told the board KDH's share of the grant is approximately $385,000.

Goodno said, “We're at $498,852 for the new building and the grant will fund 75%. We still are looking for our 25% match. We are hoping for at least $100,000 in tax credits, but the Foundation will support that match if needed.”

Goodno said KDH is working with Shelden Architects on the childcare addition. The board reviewed a proposed floor plan provided by Shelden and approved it. Applegarth pointed out KDH can save some $20,000 if they do away with the flat roof. Bids are due July 25.

The board passed a resolution regarding the childcare addition project.

The childcare needs an awning to help avoid the heat. Applegarth designed the enclosure for the Sunsetter shade and his team can build it in about three weeks. BCBS presented a check for the project. South Central Community Foundation also contributed to the project.

Manor Project Update and Other KDH Business

Applegarth said the manor kitchen remodel is complete. The fire marshal was notified and may inspect. He said that by adding a fryer grease filtering system, they have doubled the life of the fryer oil for a cost savings of $2,500-3,000 per year. The insulation already has helped the heat problem as has the new range hood.

A spa/bathroom committee is formed. The foundation provided funds for a new whirlpool. Based on committee recommendation and the PEAK survey, they are creating a spa room which will combine the whirlpool, showers, dressing room and vanity for better efficiency.

The lab's refrigerator (which must meet CLIA requirements) needs replaced soon, but is acting okay now, according to Lab Director Abby Humphrey. She said they have a backup they can use if the unit fails suddenly. The power surges hurt the refrigerator. Humphrey got a bid for $6837.51 from Fisher HealthCare. The only other quote received was over $10,000. The board tabled the issue for now.

Goodno said BCBS of Kansas pays an incentive based on quality measures. KDH is now receiving the highest incentive percentage possible at 33.5%. Two years ago they were at less than 20%. Goodno credited Campbell for making the necessary improvements.

Medical staff appointments were approved for Delphia Clarke, MD (VRad); Gary Morsch, MD (DWC); Richard Steckley, MD.

Numerous monthly reports received board approval. After about a 40-minute executive session the board approved the risk management report for the manor.

Hospital and Manor Statistical and Financial Reports

Larson presented the hospital and manor financial information and statistical reports for May to the board. She said the therapy department (physical, occupational, respiratory) is “super busy” and they've extended their hours to start at 8 a.m., instead of 9 a.m. The therapy department had 183 visits in May. Haley Nida recently joined KDH as a physical therapist.

The hospital's total outpatient visits for May were 906, up from 770 in April. Other departments with increased numbers were lab visits, 379; X-ray, 124; ER, 67; CT Scans, 48. Clinic visits totaled 580.

The hospital was in the black $63,825. That amount was derived from the following figures. Net patient revenue of $727,470 plus 340B Discount Drug revenue of $38,246 for total operating revenue of $765,716. Total operating expenses were $782,578. This made a net loss for operations of $16,862. The addition of $80,687, mainly tax revenue, made a profit of 463,825. Year-to-date the hospital has a loss of $145,490.

For May the manor's budget was based on 23 residents and 25 are needed to be considered full. The manor showed a loss of $45,681 derived from the following figures. Total operating revenue was $166,984. Total operating expenses were $219,455 for a loss from operations of $52,470. The addition of $6,789 mainly tax money curbed the loss to $45,681. Year-to-date the manor's loss is $224,982.

The comparative balance sheets of the hospital and manor show cash-on-hand of $1,367,583. Girty reported that total gross accounts receivable were $1,390,786. Total average days in AR were 49 with total payments $533,751. Girty presented the bad debt accounts for May that the board approved turning over to collection.

The Medicare receivable of $455,002 had not yet been received at that time. Uncollected taxes totaled $273,253. The year-to-date loss for the hospital/manor combined totaled $370,401. Total assets were $11,822,413.

The board approved all the financial and statistical reports.

The next meeting of the board is July 25. Plans are underway for the foundation's annual fundraising dinner and auction, Jeans and Gems. With a murder/mystery theme, Jeans and Gems is Sept. 9.