Grays Harbor Public Hospital District 2, created by voters in August, is all set to take over operations of Community Hospital on New Year’s Day, though the commissioners may get to feeling a bit bipolar once the hand-off is officially consummated.
The commissioners, who were elected at the same time voters approved forming the hospital district, officially accepted changes to the bylaws of the nonprofit hospital board on Tuesday night, installing the public district’s commissioners as the sole governing body of Aberdeen’s hospital and all its assets. The changes, though, also install the board’s seven members as the members of the nonprofit board.
Several of the commissioners displayed inquisitive expressions at the revelation of the dual roles, prompting Commissioner Miles Longenbaugh to ask the question presumably all of them sought clarification on: “How’s that going to work?”
“There will continue to be two separate corporations,” explained Foster Pepper PLLC attorney Brad Berg. “Each has their own board.”
Berg continued that the boards, however, will have the same members — the public hospital district commissioners will fill both roles. The commissioners, he explained, would at times need to take action on behalf of the district, and sometimes separately take action as the nonprofit board.
“Both of those are public meetings, is that correct?” asked commissioner Bob Torgerson.
“Yes, that is the intent,” Berg said. “You will need to be clear whether you are taking action as the public board, and when you act as the nonprofit board.”
Berg went on to explain that, after Jan. 1, the board would have the power to adjust and clarify the nonprofit bylaws to its liking. For example, instead of having to appoint two sets of officers, they could simply make the public commission’s officers also act in the same capacity for the nonprofit. Commissioner Ryan Farrer suggested that, at that time, the board could make the two sets of bylaws as reflective of each other as possible to ease any confusion or need for duplicate actions.
2015 Hospital Budget
The commissioners and the public got their first look at the nearly $103.7 million 2015 Grays Harbor Community Hospital budget on Tuesday night. The nonprofit board approved the budget at its Dec. 17 meeting, a document created by the nonprofit that the public district commissioners had no say in drafting.
The commissioners offered little discussion on the budget, and plan to delve into it in January, first at the Finance Committee’s first scheduled meeting at noon on Jan. 22, 2015, and then at the full commission’s Jan. 27 board meeting at 6 p.m. at the hospital. Beginning in January, the full commission only plans to hold a regular meeting once per month.
The budget reflects about a $3.5 million increase in total expenses over the previous year, according to 2014 budget documents submitted to the state Department of Health. It also projects an increase of more than $3.8 million in patient revenue, and assumes the hospital will begin collecting increased Medicaid reimbursement on Jan. 1, explained commission President Maryann Welch. The higher reimbursement rate was the driver for creating a hospital district. Before this, the hospital was run as a private non-profit corporation, with board members appointed and hospital business dealings essentially out of sight to the public. Legislation allowing the higher Medicaid rate required that the hospital be a public agency.
The state Health Care Authority, which ultimately decides if the hospital is eligible for the increased reimbursement rate, has not rendered an official decision, but Welch said the agency has requested copies of the updated nonprofit bylaws and the public district’s resolution accepting control of the nonprofit. Hospital officials have said they have had no indication from the Health Care Authority to date that the operational arrangement will be in conflict with the legislation governing eligibility for the higher reimbursement.
Notable expense increases in the 2015 budget include about a 3.4 percent increase in total employee salaries to more than $39.5 million, and a nearly 12.7 percent increase in employee benefits costs, which are projected at more than $16.9 million next year. The budget also projects an increase in professional fees to more than $12.5 million.
After projected revenue and both operating and non-operating income are balanced out, the hospital is projected to be just more than $266,000 in the black for the year.
Other business
• Welch announced that a ceremonial hand-off of control of Grays Harbor Community Hospital from the nonprofit board to the public hospital district commissioners is being planned for Wednesday, Jan. 7, at 4 p.m. at the hospital. More details will be announced as they are available.
• The commissioners voted unanimously to install Teresa Ramirez as the district’s public records officer.
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