HomeMy WebLinkAboutCCMinutes_2003_09_15 132
Brookings City Council
Tuesday, September 15, 2003
The Brookings City Council held a special planning meeting with the Brookings Hospital
Board members on Monday, September 15, 2003 at 7:00 p.m. in the Swiftel Center
Research and Technology Center with the following members present: Mayor Scott
Munsterman, Council Members Tom Bezdichek, Tim Reed, Julie Whaley, Doris Roden,
Tom Bozied and Mike McClemans. Members and staff of the Hospital Board, Steve
Britzman, City Attorney, and Shari Tharnes, City Clerk, were also present.
Review of Lon�Range Plannin�. Dave Johnson, Brookings Hospital Administrator, gave a
brief history of the hospital complex. A 51 bed hospital was built in 1964. A 59 bed
nursing home was built in 1971 by Mills Construction and was purchased in 1972 by the
City. The hospital and nursing home complex was expanded in 1979 and 1981 with
funding from a $2,000,000 general obligation bond. This was the last publically financed
project for the hospital complex. The home health and hospice components were added in
the late 1980s. The front administration offices, dietary area, and conference rooms were
expanded in 1989. The OB unit was renovated in 1993 for $1,000,000. The operating
room, emergency room, and garages were expanded in 1997. The home health and hospice
units were enlarged in 1999 and 2000 for$4,000,000.
A significant financial impact on the health care industry has been that Medicare, Medicaid,
and insurance providers are paying less than actual charges under "fixed reimbursement"
programs. In 2004 the Brookings Hospital is projected to lose $500,000 under the
Medicare system alone. The Hospital writes off millions in unpaid bills. There is a public
misperception that Medicare pays the total bill.
Johnson discussed the Hospital complex's current costs and expenses. Staffing has been
decreased by 67,500 hours resulting in a 13% reduction totaling $1,000,000. The nursing
home is operating at an 88% occupancy rate and a 95-98% rate is needed to break even.
The Hospital Board is seeking other health care services to supplement the revenue base.
The Hospital Board developed a strategic plan in 2000. A Minneapolis�based firm that
conducted the study identified the need for more congregate living units in Brookings.
Congregate living facilities are recognized in the health care industry as a component in the
continuum of care for elderly individuals. A congregate living facility requires a 55%
occupancy rate to break even rather than the much higher percentages required in nursing
home facilities. The Board is estimating a $250,000 annual income from the facility and
no bonds will be required to build it. The Board voted unanimously to build a total of 75
congregate living units consisting of three buildings of 25 units each. The Board sees this
expansion has a natural extension of the hospital's services, as a revenue generator, as an
investment in an asset, and a means to meet the community's needs.
Municipal hospitals have the ability under state law to own, lease, or sublease facilities. It
was noted that most private developers are not interested in investing in con,�regate living
facilities. It was further noted that municipally owned hospitals can not invest their money
in the same manner as private business.
There was a concern raised regarding the need to update the Board's byla�vvs so that it
reflects congregate living as an allowed activity. It was noted that the City Charter atlows
the Hospital to expand into this type of activity.
More public relations on the part of the Hospital Board was suggested so that the citizens of
Brookings know what is planned. More information sharing between the Hospital Board
and City Council was also suggested to include circulation of board minutes, quarterly
verbal reports at Council meetings, quarterly meetings between the two boards, and annual
written reports to the Council.
Challenges facing the Brookin�s Hospital for the ne� five years include thie addition of
private rooms, the congregate housing expansion, and the relationship with private doctors
and clinics.
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133
Adiournment. A motion was made by Whaley, seconded by Bozied, to adjourn. All
present voted yes; motion carried. Meeting adjourned at 8:30 p.m.
CITY OF BROOKINGS
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