HomeMy WebLinkAboutBHSMinutes_2011_06_091 of 4
Brookings Health system
Board of Trustees
June 9, 2011
Board Members: Rob Jones, Chair, Al Baker, Vice-Chair, Zeno W. Wicks, III,
Secretary, Jim Booher (arrived at 7:39 p.m.), Arne Brown (arrived at 7:39 p.m.), Sandra
Faltemier, Debra Johnston, Teresa McKnight, Julie Whaley, ex-officios: John Kubal and
Mike McClemans
Others: Rich Helsper, Legal Council, Kevin Coffey, Interim CEO, Dave Timpe,
Accounting Consultant, Tammy Hillestad, CNO, Brian Sterud, Information Management
Manager, Phil Wagner, Project Manager, Jason Hanssen, Nursing Home Administrator
and Deb Davis, recorder.
Jones called the special Hospital Board of Trustee Meeting to order at 6:07 p.m. He
noted if there was time he would touch on one additional item under New Business, The
Lewin Group.
OLD BUSINESS
Meaningful Use
Sterud provided information on meaningful use, also known as HITECH Act or ARRA.
Healthcare costs in the United States are the highest in the world. Meaningful use is a
government mandate. The Health Electronic Record (HER) is to be in place by 2015 for
hospitals (nursing homes and clinics are not impacted). Meaningful Use’s purpose is to
improve health care through healthcare delivery as well as improve quality of patient
care. Dakota State University (DSU) is one of the regional extension centers to assist
facilities meet the mandates. Meaningful use has three stages. It is anticipated that
completion of all three stages will take three to four years to complete. Stage 1 is defined
and in place. There are 14 core objectives and 5 of the core objectives must be done in
the first Federal Fiscal Year. There is Federal incentive dollars (graduated payments up
to $1.3 million) tied to the timely completion of all three stages. However criteria of
stage two and three are still being debated by congress. Sterud noted Stage 1 of
Meaningful Use mirrors the seven stages of the US EMR (electronic medical record)
Adoption Model that Brookings Health System has been working diligently on the past
three years. BHS is at stage 6 of the US EMR Adoption Model (only 3 percent of health
systems in the nation are at this stage). The seventh stage of the US EMR Adoption
Model will be accomplished by the time stage one of the HITECH Act is complete.
Sterud noted BHS will partner with DSU for assistance during the Meaningful Use
implementation.
IT Grant
Sterud then talked about the recent technology grant that was submitted for funding
between BHS (includes Brookview Manor Nursing Home), Avera and United Retirement
2 of 4
Center/Avera (URC/A). The grant, titled Brookings Community Health Information
Network, will help the other two entities (Avera and URC) complete stage one of the
HITECH Act in 2012. Coffey noted a decision needs to be made in the near future if
BHS will continue to move forward with the grant. There are still many unanswered
questions such as where will BHS data be housed, how will continuity of care be done
between other entities that use our facilities (i.e. OI, Sanford). September 1, 2011 is
when notification will be received if the grant is awarded. Sterud will update the
Strategic Planning Committee on a regular basis. Sterud was excused at 7:03 p.m.
BHS Foundation Budget - 2011
At the May 26, 2011 Board of Trustee Meeting, Roberta Olson, chair of the BHS
Foundation spoke of the Foundation’s goal to raise $5 million dollars for the new nursing
home. In order to do so, Olson indicated that continuation of the Hillary Lyons contract
through August 2012, would be an important key. A motion by Whaley, seconded by
Wicks, to approve the 2011 BHS Foundation Budget and the Hillary Lyons contract
through December 31, 2011 and reevaluate the Hillary Lyons contract for the 2012
budget cycle. Unanimous approval (Brown and Booher were not present). Motion
carried.
Jones handed out a letter that was received from Mayor Reed regarding a Fundraising
Event at Olson’s home on June 21st. Based on the wording of the invitation, which went
to Hospital Board Members and City Councilors, the Mayor presumed a meeting was
going to be held, rather than a strategic planning event. Helsper noted meetings are held
in homes throughout the county and he will research the intent of Open Meeting Law.
Jones and Kubal will talk to Mayor Reed regarding the letter. Jones will talk to Olson
regarding the invitation.
CEO Search Update
At the May 26, 2011 Board meeting, Baker handed out a Position Description for the
CEO and a Timeline for the CEO Search. A revised CEO Position Description was
handed out for the Board to critique. The CEO Search Committee asked for the Board to
review and approve both documents. Baker inquired about the intent of Diversity as a
strategic objective. McKnight said this is common language and infers equal treatment of
all applicants. A motion by Johnston, seconded by McKnight to approve the CEO
Position Description. Unanimous approval. Motion carried.
Nursing Home
Jason Hanssen stopped in after his return from Perham, Minnesota, where several staff
toured a skilled nursing facility. He was introduced by Coffey to the Board. Hanssen’s
first day in his current position was May 31, 2011 and comes to Brookings Health System
from Golden Living in Madison. He and his wife and two year old son are looking
forward to becoming a part of the community.
Governor’s Cuts
In November 2010, a letter was sent to private pay residents informing them of a 3.71
percent rate increase effective 01/01/11. The rate increase was based on the consumer
3 of 4
price index. Another letter was sent 01/06/11 informing nursing home residents should
Governor Daugaard’s 2012 budget proposal be approved, what the impact would have on
private pay residents. As a result of the cuts in Medicaid funding, Brookview Manor will
see a 3.75% cut in Medicaid reimbursement. Projected revenue loss would be
approximately $46,240 from 7/1/11 to 12/31/11. This equates to a $6.61 per day increase
to private pay individuals for the remaining six months of 2011. Coffey noted in order to
maintain the approved 2011 budget BHS needs to account for the lost revenue due to the
cut in Medicaid funding. A motion by Johnston to pass along the $6.61 per day increase
to private pay nursing home residents to cover the shortfall in Medicaid funding, the
increase would take effect August 1, 2011. Whaley seconded the motion. In favor of the
motion: Jones, Baker, Wicks, Booher, Faltemier, Johnston McDaniel and Whaley.
Opposed: Brown. Motion carried.
Sprinkler System Update
As directed by the South Dakota Department of Health, the sprinkler system at
Brookview Manor was to be flushed prior to July 1, 2011. A firm that tests sprinkler
systems was on site to conduct the test but the test failed. The nursing home
administrator and facility manager are working on a plan to inform the state and federal
government what will be done to resolve the problem. Currently four-hour fire checks
are in place. As mandated by the government, all nursing homes’ must have a sprinkler
system in place and functioning by July 2013. The estimated cost to replace the sprinkler
system in Brookview Manor is $300,000.
New Construction Funding
Timpe provided an estimate of projected sources and uses of funds for the skilled nursing
facility. He based his figures on construction costs of $9, $10, $11 and $12 million dollar
facility. Depending on the construction costs ($9-$12 million) estimated total sources of
funds ranged from $12.7 million to $16.1 million. Helsper reminded the Board that
construction bids cannot be requested until there are the dollars to build and the Board
has dedicated the funds to the project. Timpe commented Brookings Health System does
have the cash. At present there is approximately $19 million dollars in the bank. Wicks
indicated it is not fiscally responsible of the Health System to spend down the cash on a
facility that, at best, breaks even financially. Helsper was excused at 9:15 p.m. A motion
by Johnston, seconded by Wicks to direct Coffey to submit the paperwork requesting
each entity, the county and city for $5 Million in cash. There was concern that requesting
$10 Million was to excessive. A friendly amendment made by Wicks, seconded by
Brown, to reduce the amount of the request to $4 Million from each entity for a total of
$8 Million. Unanimous approval. Motion carried.
Executive Session
At 7:29 p.m. a motion by Whaley, seconded by Faltemier to move into Executive
Session, citing SDCL 1-25-2.1 Personnel Matters. Those in attendance: Jones, Baker,
Wicks, Jim Booher, Brown, Faltemier, Johnston, McKnight, Whaley, Kubal,
McClemans, Helsper, Coffey, Timpe, Hillestad and Davis. Moved out of executive
session at 7:37 p.m.
4 of 4
There was discussion as to who should be involved in Executive Session. Helsper
indicated it is the Board Chair’s right to invite anyone he/she feels is appropriate.
However, Helsper went on to say the Board members as a whole could override the
Chair’s decision.
At 7:45 p.m. a motion by Johnston, seconded by McKnight to go back in to Executive
Session, again citing SDCL 1-25-2.1 Personnel Matters. Those in attendance: Jones,
Baker, Wicks, Jim Booher, Brown, Faltemier, Johnston, McKnight, Whaley, Kubal,
McClemans, Helsper, Coffey, Timpe, Hillestad and Davis. Moved out of executive
session at 8:27 p.m.
Meeting concluded at 10:25 p.m.
Respectfully submitted,
_____________________________________
Zeno W. Wicks, III, Secretary