During their regular board meeting Monday evening, the Box Butte General Hospital (BBGH) Board of Trustees was provided an update from a representative of Lancaster Pollard on financial plans for the addition/renovation project. Lancaster Pollard helps health care, senior living and housing providers expand and improve their services by providing investment banking and mortgage banking solutions. Quintin Harris was the representative providing the update.
It was recently announced that the United States Department of Agriculture (USDA) Rural Development awarded $23 million to Box Butte General Hospital under their Community Facilities Direct Loan Program. Leveraged funds of $8 million from Box Butte County and more than $3.3 million from the hospital will also be utilized. The funding will construct a 79,000 square foot two story addition to the west side of the current hospital.
Mr. Harris reported he is meeting with area banks and investment firms to discuss loans and bond investments, both institutional and from individuals. “The goal is to use the leverage of the USDA funding to obtain local investments,” he said. Banks will provide construction loans for the project, and Mr. Harris provided assurance that local banks will get first opportunity. Once the project is completed, the funding received from USDA will be used to pay off those loans. Meetings with the county commissioners are also planned concerning the disposition of $8 million in general obligation bonds.
Mr. Harris said the USDA announcement awarding $23 million to the project has many benefits. “Not only did the hospital obtain a very low rate, it also provides the best terms you can possibly find,” he said. “It doesn’t matter if construction takes 18, 24 or 36 months – you are locked in at 3.5 percent. When the project is done, if the rates are lower at that time, you can relock at that lower rate. But if the rates are higher, you are still locked in at 3.5 percent. There just isn’t another funding option in the universe that has that. It’s a very, very good deal.”
The meeting started with the recognition of Tracy Clarke, LPN-C, as the November Employee of the Month. Also recognized was Abigail Keilwitz, DPT, who successfully completed her physical therapist licensing boards. New employees were introduced, including: Kristi Ellstrom, Promotion Specialist; Heather Conyers, sonographer; Amanda and Amelia Oetken, cook assistants; Shyanne Hall, cook; Leslie Ilg, RN; Cherri Pachak, LPN; as well as Lisa Burri and Wendy Kreta, GNMSS cashiers/receptionists.
After the consent calendar was unanimously approved, Safety Officer James Koeteman presented the annual board safety report. He went over the various emergency codes used at BBGH and their meanings. He also reviewed results from The Joint Commission concerning a recent safety survey, along with the policies and plans for action put in place to address deficiencies found in the survey. Additional eye wash stations have been installed as well, as recommended by The Joint Commission survey. OSHA’s recent adoption of the globally harmonized system used in Europe, which uses pictograms for identifying hazardous materials, was also discussed, as well as the employee training it will require. Mr. Koeteman reviewed physical plant inspections conducted over the past year to identify safety issues and how those issues were resolved. He concluded with a LEAN Six Sigma initiative to reduce lift and strain injuries by 20 percent. LEAN is a process developed by Toyota Production Systems to control costs and improve efficiencies in manufacturing, a process found to be useful in the health care industry as well.
Controller Lori Mazanec reported the October financial report showed an increase in net assets of $249,000. Total patient service revenue for the month was $3,739,000, which was $64,000 less than projected. Year-to-date inpatient revenue is nine percent behind budget and $42,000 less than one year ago. However outpatient revenue is on target for the year and is ahead of last year’s revenue by $914,000. Operating expenses for October were $26,000 higher than budgeted. Year-to-date expenses continue to look favorable, remaining under budget by $305,000, or 2.9 percent. Operating income for the month was $262,000, which was 50.8 percent higher than predicted. Year-to-date operations have delivered a gain of $268,000. Adding revenue from non-operating sources brings the year-to-date increase in net assets to $284,000, 13.7 percent lower than projected. The Trustees unanimously accepted the financial report.
CEO Dan Griess gave his monthly Governance Focus presentation, which focused on effective governance by board members. The highlights of the PowerPoint defined the roles of the board, including the fiduciary responsibilities of care, loyalty and obedience, and the responsibilities of quality and financial oversight; strategy development; management oversight; advocacy; and board development, both present and for future board members. His presentation detailed each of the responsibilities mentioned. The board was especially interested in developing criteria for future board member consideration that would allow candidates to know what the board is looking for as far as capabilities and experience.
Mr. Griess reported that the annual Recognition Dinner will be held December 7 and requested the board approve funding the meal for each employee, as well as $250 to be awarded the Employee of the Year recipient. The board unanimously approved the request. Mr. Griess asked hospital legal counsel, Attorney Jim Moravek, to research if the annual request for approval of the dinner and Employee of the Year costs is required, or if those costs can be included in the general budget, as are other employee recognition expenses.
CNO Jane McConkey was pleased to announce that the Health Professions Club (HPC) was the recipient of a $2,500 grant from the Snow-Redfern Memorial Foundation. The Foundation focuses on supporting youth organizations such as the HPC. She said the award was greatly appreciated and will be used to help defray travel and lodging costs incurred during field trips to regional health care facilities.
After approving a lengthy list of credentialing requests, the board set the next regular meeting date for Thursday, December 20 at 7 p.m. in the Alliance Room, due to the holidays. As always the public is invited to attend. With no further business, the board adjourned at 8:12 p.m.
