Hospital transition slated for Oct. 1
Cronkleton will remain as chief financial officer
Banner Health Systems will transfer management duties to Marion County Hospital District #1 board of directors on Oct. 1.
Board members reluctantly voted 3-1 to approve the final agreement with Banner Health Systems because the final, corrected copy was not available at the Thursday evening board meeting. Doug Newman, chief executive officer, stressed to the board it could cost the district an additional $250,000 if it was not approved that evening. Newman stated Banner could withdraw its offer of equipment and inventory.
Tom McCall, Quorum Health Resources representative, also encouraged the board to act because of time constraints and suggested the board at least make the motion to accept the agreement contingent on the attorney's approval.
With that, board treasurer Greg Bowers made the motion and board member Martin Tice seconded the motion. Board president Gene Winkler, Bowers, and Tice voted to approve the agreement, board member Ken Vinduska voted against.
A previous date of Dec. 31 was discussed to allow time for the transition but the process was not taking as long as previously determined.
Following a 25-minute executive sessions with McCall, the board approved Quorum's proposal for phase two of the transition at one-half the management fee.
Quorum Health Resources had provided assistance to the district with negotiations and transference. Quorum has a five-year contract with the district to continue to provide management consulting services after the transition period.
The board also approved the authorization of Quorum to offer Kevin Cronkleton, current chief financial officer with Banner, the CFO position with Quorum.
Donation for transition
Board chairman Gene Winkler reported he had received a check for $10,000 from Betty Mull for transition expenses.
Mull had been approached for a donation to "adopt" a duck for the Dinky Duck Race during Chingawassa Days but said she would prefer to make a cash donation.
Employee insurance
Cronkleton reported he had received insurance proposals from Gardner and White, and Advance for life disability insurance. Cronkleton said the rates were in line with what currently was being paid with Banner.
Current coverage is one times the base salary with an option to increase up to three times the base.
Cronkleton recommended the board approve life insurance from Advance at a base of $10,000 per employee with the employee's option of buying up to five times that amount. The board approved the life insurance recommendation from Cronkleton with Advance.
The board also approved continuing the 401k option with Fidelity where an employee will have immediate vested interest and can participate after one year of employment.
Health insurance decisions were tabled until options are explained to employees by Blue Cross/Blue Shield representatives this week.
Leases approved
The board approved two leases.
Prairie View, Inc., requested a lease to use St. Luke Living Center chapel one day per month.
A lease also was approved for Carolan McFarland at St. Luke Integrated Health Care Clinic at 921 E. Main Street. The lease was renewed with the same terms and conditions as the previous year.
Other business:
— A recommendation from hospital district auditor John Harris of Baird, Kurtz, and Dobson was approved to conduct a district audit after the first year of operation as an independent hospital. The 21-month audit would be less expensive than two separate audits.
The board also approved Cronkleton arranging a meeting for board treasurer Bowers to meet with Cronkleton and the auditor to prepare the budget which is due in August.
Currently the hospital receives $410,000 in tax draws. Tice said he would like to see the mill levy remain as it is.
— Cronkleton reported the new CPSI computer system will be located in the former massage therapy area in the clinic basement. Carpet will need to be replaced with vinyl flooring to eliminate static electricity, Cronkleton said. Two bids had been obtained with a low bid of $605 from Hillsboro Carpet Center was approved.
— The board approved the purchase of a patient care/education computer module for $3,900.
CPSI computer consultants did a walk-through and determined three printers and network connectors were needed.
— Newman reported a recent boiler inspection determined a need for minor repairs. The charges will be billed through Banner.
— Approval was given for the replacement of an air conditioning unit in the hospital laboratory. Bids were solicited with Jim Davis Air Conditioning of Marion being awarded the project.
A 42,000 BTU unit with eight-inch vents will be installed at a cost of $3,516.
Janet Herzet, director of Marion County Home Care Services, suggested hospital personnel use a county crane to lift the new unit onto the roof to reduce the cost. Hospital staff will check into the suggestion.
— Cronkleton recommended the board withhold payment of $59,831 to Professional Mechanics regarding the hospital's new chlller (air conditioning) unit. He reported the unit is not working satisfactorily. Representatives from Professional Mechanics were scheduled to correct the problems this week. The board approved the recommendation that payment be withheld until repairs meet the hospital management's satisfaction.
— Bills were approved in the amount of $5,805.
— The board approved a proposal for North Central Flint Hills Area Agency on Aging to receive reimbursement for home health care.
— Jan Moffitt, Healthy Fit coordinator, reported the project was completed. Final reports were not available but she considered the project a success.
The next board meeting will be at 7:30 p.m. Aug. 12 in the clinic basement.
