City Council (View All)
Tuesday, September 02, 2008
FOR THE SPECIAL MEETING
ASHLAND CITY COUNCIL/ASHLAND COMMUNITY HOSPITAL ANNUAL BOARD
September 2, 2008
1175 E. Main Street
Mayor Morrison called to order at 6:45 p.m. the annual meeting of the Ashland Community Hospital Board (ACH).
Member Marie Donovan spoke on behalf of the Board of Directors and presented the annual report to the City Council. She noted that the Board had been focusing on strategic planning, on the hospital's financial health, the recruitment of physicians to the community and the need to acquire technology to meet the needs of patients and their physicians. The board has also worked to support the implementation of the Planetree model of physician-centered care.
Ms. Donovan announced that two new Board members had been appointed, Valri Williams and Tom Reid. She voiced appreciation for Marilyn Hanna who had left the Board after serving for many years and Dave Bernard who is currently serving as Immediate Past Chair.
She introduced Mark Marchetti, Chief Executive Officer for Ashland Community Hospital. Mr. Marchetti presented the report for the end of the 2008 fiscal year noting the following:
- Service volume increase
- Number of admitted patients; inpatient care; delivery of babies; completed surgeries; home health visits and hospice care
He explained how operating expenses had increased at a higher rate than net revenue after deductions for contractual adjustments, charity care and bad debt. Overall, hospital operations combined with non-operating revenues resulted in a small loss for the year. He provided examples on the financial issues facing the hospital over the past year and the responses the hospital has taken due to these financial pressures. The hospital undertook a major Innovative Initiative to identify and implement ways that they could be more efficient and generate an improved operating margin which involved a careful analysis of all areas of the hospital's operations. This initiative is expected to return the hospital to a more profitable position by 2009.
Mr. Marchetti presented the following hospital accomplishments:
- Completed first full year implementing Planetree model of patient-centered care
- Continued active recruitment of physicians to meet needs of the community and support ongoing success of hospital
- Reviewed/revised Strategic Plan and Medical Staff Development Plan
- Began work on IT Strategic Plan and Long-Range Financial Plan
- Development of Campus Plan
- Improvements to hospital facilities including renovations to Medical Records Department and Laboratory
- Created Health Information Resource Center in lobby of Diagnostic and Surgery Center
- Built new Data Center to house critical IT system components
He explained that the healthcare industry is technology driven and that over the past year ACH had invested approximately $1.95 million in enhanced technology. In addition, ACH is committed to the support of education for its staff and that continuing education by employees was supported and numerous community activities and educational programs were being sponsored. Of greatest significance, he noted that the hospital had provided approximately $8.4 million in uncompensated care in fiscal year 2007-2008, which includes approximately $1 million in charity care, $2.5 million in bad debt write-offs, and $4.9 million representing the shortfall in payments through the Medicare and Medicaid Programs.
Mr. Marchetti proposed the following as goals for the new fiscal year:
- Continue to work toward greater operating efficiencies and cost containment to meet the financial objectives set forth in the budget,
- Finalize revisions to the hospitals long-range plans including the campus development plan,
- Continue to work with the medical staff on medical staff development issues and the recruitment of physicians necessary to meet the needs of the community,
- Continue to explore new programs and services that meet the needs of the community and support the success of the hospital,
- Work toward the implementation of an integrative model of patient centered care and achieve Designation Status through the Planetree Organization, and
- Work to assure that Ashland Community Hospital is and remains the hospital of choice for employees, physicians and the community at large.
Meeting was adjourned at 7:00 p.m.