HomeMy WebLinkAbout2000-0718.HOSPITAL.MIN (ANNUAL)MINUTES OF THE ASHLAND CITY COUNCIL
ANNUAL HOSPITAL BOARD GENERAL MEETING
July 18, 2000
PLEDGE OF ALLEGIANCE
Council Chairperson Hanck called the meeting to order at 6:45 p.m., Civic Center Council Chambers.
ROLL CALL
Councilors Laws, Reid, Hauck, Hanson, Wheeldon, and Fine were present. Mayor Shaw arrived late.
STATUS OF ASHLAND COMMUNITY HEALTHCARE SERVICES BOARD REPORT
Ashland Community Hospital Administrator Jim Watson introduced Chairperson Patty Acklin of the Ashland
Community Hospital Board who noted that a robust period of business is being enjoyed. She attributed this to the
positioning of the hospital to meet the challenges of health care and the leadership of the Hospital Administrator, staff,
board members and many other individuals and groups.
Acklin acknowledged the support of the Mayor and council to the hospital staff. She noted the advanced preparation
of the problems associated with Y2K and that the hospital experienced no difficulties. Growth in the staff and
departments were noted and the on-going direction of maintaining high standards and the vision of long-term planning.
Acklin explained that there have been eight departmental in-services at the board meetings to keep the board members
informed about how the hospital operates. She also noted that there have been two planningretreats, fourjoint advisory
meetings and an annual meeting of the Hospital Board. Acklin acknowledged past board members Mary O'Keefe and
Mary Ellen Fleegar and current board members Mavis Cloutiar, Paul Nicholson, Dan Jackson, Jean Keevil, Greg
Williams, Mary Jane Tillson, Bruce Johnson, Jack Sabin, Dave Bernard and Marilyn Hanna.
Comptroller Mike McGraw spoke regarding the challenges surrounding the Medicare program. He explained that the
federal government balanced the budget in 1997 by taking payments away from hospitals and physicians. He further
explained that these payments are focused in the five leading areas of activity at the hospital and that they are looking
at a reduction of $100,000 in cash flow from the in-patient area alone. He stated that Home Health is going to be
reduced by $75,000 a year, capital pass-through will be reduced $70,000 a year, and bad debt will be reduced $25,000
a year. Further, as of August 1, there will be the biggest change in payment criteria for the Medicare program is a flat
rate payment for out-patient activity, which is a reduction of $180,000 a year. McGraw explained that the hospital will
be experiencing $525,000 in reduced cash flow from the Medicare program from August 1, forward. McGraw explained
that there is inequity in the system as compared to other states and current litigation is occurring against the federal
government in order to obtain additional liquidity.
McGraw noted that there are additional reductions in revenue as changes in insurance coverage is requiring increased
efforts to collect from patients rather than from insurance companies. He emphasized that the hospital has been able
to make the adjustments necessary and is doing very well. He feels that the Ashland Community Hospital is the most
viable hospital, of its size, in the State of Oregon to-date.
Watson presented handout to the council that addressed the growth that the hospital has experienced and also provided
numbers of service from 1995 through 2000 with percentage of change through this time. He explained that growth
is creating a burden on the physical plant of the hospital and that they will be breaking ground on a new cafeteria facility
soon. He stated that they are continuing to look in areas where there is a possibility of obtaining additional footage for
the hospital and commented that a lot of services could be moved off campus.
Watson noted that a facilitator had been secured to create a master plan in addressing the rapid growth and requested
input from the council and the community in regard to parking.
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Acklin noted that the proposed building addition is a second floor plan and noted the concern of building up rather than
out, especially in regard to parking.
Watson noted that 6-8% of the hospital business is Oregon Health Plan business. He explained that this plan is
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mentioned that the plan to put the entire population into a managed care setting has failed, and very few of the Oregon
Health Plan patients are in managed care. He noted a 17% growth in the use of the emergency room of Oregon Health
Plan patients. Acklin explained that the hospital participates, with significant effort and a good working mlatinnship,
with the Ashland Community Health Center in expanding their hours of operation in order to provide health care to
those individuals who have this need.
Watson emphasized that this has been a very good year for the hospital despite the challenges before them.
ADJOURNMENT
The meeting was adjourned at 7:07 p.m.
Submitted by Barbara Christensen, City Recorder/Treasurer
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