HomeMy WebLinkAbout1996-0430 SS MIN CITY OF ASHLAND
Council Special Session/Joint Ashland Community Hospital
April 30, 1996
Meeting called to order at 7:08 p.m.
Attendance: Mayor Golden and Councilors Thompson, Hauck, Reid, Hagen and Wheeldon;
Ashland Community Hospital Board of Directors/Committee members Jim Watson, Mary
Ellen Fleeger, Richard Nichols, Judy Ubherlau, Peggy Cochrell, Mary Krystine R.N., Patty
Acklin and Greg Williams. City Administrator Almquist and City Attorney Nolte and local
media.
Introduction, Overview of Chan~es and Challenges to Healthcare Providers by
Hospital Administrator James Watson.
Watson presented brief overview of the changes and challenges that Ashland Community
Hospital was facing with Healthcare providers. Because of the hospitals municipal structure
it is in a unique situation compared to other Healthcare providers.
Stated that the risk in providing services have shifted from the insurance companies to the
providers. Because of the changing structure, hospitals are finding it necessary to "group
up" with other entities that would allow the facility to remain attractive to managed care
groups in securing their contracts.
Council and public was informed of all the continuing education and open forums that have
been held in many of the community groups.
Mayor Golden introduced Hospital Board of Directors and noted the diversity in the group
representing the Hospital.
PUBLIC HEARING
Shurm Garner/615 Faith Ave/Presented extracts from article on healthcare. Shared
personal experience with healthcare and HMO. Agrees with concept of change. Presented
information from Oregon Constitution Article 10, Section 9 dealing with limitations on
powers of county or city to assist corporations. Questioned as to whether this limitation had
been addressed.
Jim Watson, Hospital Administrator explained that with the severance of ties with the City
there would be no limitations by this law. Jim Whitman, advisor for ACH explained further
regarding questions of how assets would be transferred and the role of the City with the
hospital on a contractual basis. Oregon law permits a city to form a corporation on a not-
for-profit basis and does not share with any other entity.
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Paul Nolte, City Attorney explained that the City is not becoming a shareholder in a
corporation. He does not believe that what the City is doing violates Oregon law.
Joe Eckhardt M.D./108 Bush St/Voiced concem that there were not a larger number of
physicians on the Beard of Directors. Believes that "if its not broken, why fix it?".
Questions motives and what is to gain. Opposes transfer of hospital. Presented statement
regarding opposition. Concerned that there would be no public access to financial records or
accountability.
In regards to financial accountability, Watson explained that 16 copies of financial audits are
distributed by law are available to the public. In addition to distribution of financial audits it
was explained that there will be a Definitive Agreement between the hospital and city to
make sure that the hospital is functioning in such a way that was approved by the city
government. Questions regarding quality and availability of care was addressed. Watson
assured Eckhart that he did not see there being any jeopardy to the quality of care or denial
of services that our community receives currently.
Bill Lucas M.D./l1233 Corp. Ranch Rd/Questions the number of cities that own hospitals
this size. The number was undetermined. Stated he had no connections with the hospital
and no pre-conceived ideas. Does not believe that regardless of direction that the hospital
takes it will make no difference because not-for-profit organizations are in control of
healthcare. Explained difference between not-for-profit and for-profit organizations. Does
not feel the city should be connected in anyway with the hospital. Feels that the hospital
should be sold and the assets used for other city needs.
Watson explained that the future was very hard to determine and the ownership of the
hospital by the city has been evaluated constantly. By being a not-for-profit organization this
may allow additional time for freedom from other outside constraints. It is his opinion that
the quality of care instead of the cost of care will change in the future.
Councilor Reid questioned the hospitals connection with for-profit organizations. Hospital
Director Patty Acklin explained that patients are making the choice of who they have
HMO's. It is important to be able to be on a prorider panel of these HMO's.
Mayor Golden explained that there were many amenities for the employees of the hospital
which favors the city being a continued part of the hospital.
Director Judy Uherbelau agreed with Lucas and explained the expected relationship of the
hospital and the city. Explained that there is a liability limit currently as a government
owned entity, once the hospital is separated from the city the limit of liability is removed.
Because of this there is a increased liability for law suits. Touched on areas of concerns
regarding HMO's. Because of the community involvement with the hospital this would
provide some safeguard. States that she feels that we should walt a little while and take a
wait and see position, possibly consider sale of hospital but remain a Community Hospital.
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Director Richard Nichols disagrees that this is a valuable asset to the city and would not like
to see the sale of this asset. States that in any change of this kind there should be an
expected downsizing of currently provided services. Feels hospital provides an important
economical base for the community.
Director Greg Williams commented that there was a unanimous vote of the Directors to
support this concept. Stated that ultimately the responsibility will lie with the Council.
Councilor Wheeldon commented that the public would not "know the difference".
feel that the liability issue would be a threat from the community because of their
involvement with the hospital.
Did not
Councilor Reid questioned term of lease, sub-leasing and money to buy into Cascadia.
Whitman explained there would be a 10 year, then 25 year lease term. It is also necessary to
allow some sub-leasing for example gift shop. He noted that sub-leasing would have to
follow guidelines set by Council. Shares for Cascadia would be $1,000 @ share. Intention to
have active medical staff to have a share in Cascadia, there is limitations to the Class of the
shares and who can purchase these shares.
Acklin explained that the intention is to operate as other hospitals are allowed to operate by
being a diversified organization. Cascadia is only an example.
City Administrator Brian Almquist explained there was a necessary appropriation the hospital
left in the 1996-97 budget and the amount had to be guesstimated.
Mayor Golden noted that the transfer is to be completed by the 1st of July. Requests
Council to assist in filling the additional vacancies on the new Board of Directors.
ADJOURNMENT
Meeting adjourned at 9:00 p.m.
Barbara Christensen, City Recorder
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