Loading...
HomeMy WebLinkAbout08-06-03 MINUTES OF THE DOWNEY HOSPITAL COMMISSION REGULAR MEETING AUGUST 6, 2003 I. CALL TO ORDER The Downey City Hospital Commission Regular Meeting was called to order at 5:04 p.m., August 6, 2003, in the 2nd Floor Training Room of Downey City Hall. II. ROLL CALL Present: Harold Tseklenis, Chairperson Chuck Hutchinson, Vice- Chairperson Diane Boggs Sharisse Molyneaux Russ Persion Dwight Simpson Julie Simpson Mark Vasquez Absent: Jerry Silby (excused) Nikki Utermohlen Also Present: James Makshanoff, Asst. to the City Manager Kathleen L. Midstokke, City Clerk/Secretary Chairman Tseklenis welcomed back Diane Boggs to the Commission and welcomed new members Dwight & Julie Simpson and Sharisse Molyneaux. III. APPROVAL OF MINUTES: February 5, 2003 It was moved by Commissioner Vasquez, seconded by Commissioner Persion and unanimously carried (8/0), to approve the Minutes of February 5, 2003. It was noted the regularly scheduled meeting for May 6, 2003 was cancelled due to documents for review not being available. IV. DOCUMENTS SUBJECT TO REVIEW A. Downey Regional Medical Center – Hospital, Inc. corrected Financial Statements for year ended June 30, 2002. Chairman Tseklenis noted that the corrections included moving $50 Million from Current Assets column down to the Assets Limited as to Use column. City Hospital Comm. Minutes 08-06-03 1 Vice-Chairman Hutchinson noted that $49 Million was moved down into long term debt in technical default. The current ratio (assets vs. liabilities) was 1.068 and now is 1.023. Under the terms of the Lease, they are in technical default because of the ratio. Commissioner Dwight Simpson explained that he has been a life long Downey resident, having been born in the hospital when it was on 5th Street. He and his wife have met with Assistant City Manager Powell and are gathering background information in order to understand the function and duties of the Commission. His understanding it that the Commission is an advisory body to the Council in regards to the Lease with the hospital. Chairman Tseklenis noted that the Commission sees to it that the hospital submits the documents that are required to by the Lease. The Commission then reviews the documents and advises the City Council. Vice-Chairman Hutchinson noted that the bottom lines in the Financial Statements have stayed the same and that some of the auditor’s notes have been revised to be more explanatory. receive and file There being no further comments, it was so ordered to . B. Downey Community Hospital Foundation Income Tax returns for year ended June 30, 2002. Vice-Chairman Hutchinson noted that salaries are being maintained at a high level and that Don Carrico, who was the Executive Vice-President and Finance Director of the hospital, is no longer with the hospital. Chairman Tseklenis inquired whether any of the other members had noted in the newspapers that Granada Hills Memorial Hospital, a non-profit community hospital, is going bankrupt and is $2 Million or $3 Million in debt. receive and file There being no further comments, it was so ordered to . V. ORAL COMMUNICATIONS Commissioner Vasquez commented on the recent suicide of his grandson and the excellent treatment he had received from DRMC. They also did an excellent job in grief counseling to the Warren High School students. The other Commissioners expressed their condolences to Commissioner Vasquez on his loss. Commissioner Molyneaux inquired whether the Commissioners viewed the hospital fiscal position as getting better or sliding back. Vice-Chairman Hutchinson responded that he feels the pattern is downward. Chairman Tseklenis indicated he feels that they are surviving on interest income. Commissioner Julie Simpson inquired regarding the number of donors to the foundation. City Hospital Comm. Minutes 08-06-03 2 Chairman Tseklenis responded that donors contributed about $700,000 last year. The Foundation made money on the golf tournament, but lost money on the Charter Ball that used to be a big fundraiser for them. Chairman Tseklenis noted that by the year 2008 the nursing tower may need to be rebuilt due to earthquake design requirements. Commissioner Dwight Simpson inquired regarding the technical default on the Lease. Vice- Chairman Hutchinson responded that it involves the bond issue and the fact that there is not enough clear equity to meet the requirements. Commissioner Julie Simpson inquired regarding the potential of bankruptcy and what the City might be able to do. Vice-Chairman Hutchinson responded that if the current operators of the hospital goes bankrupt, then a new operator would step in. Commissioner Boggs spoke on the Rancho Los Amigos Rehabilitation Center funding issue and indicated that the County now has some more money to keep it operating longer and give some more time for a private non-profit to be created. She further explained that the Oral Communications section of the agenda is also for members of the public to speak before the Commission. She also expressed that she is glad to be back on the Commission and along with the other Commissioners, is concerned about the future of the hospital. Commissioner Persion indicated that although he was not an advocate of the hospital services for a long time, he recently received medical treatment for an artery problem and he was very surprised by the efficiency and high level of services provided by the hospital during his 1st visit as a patient. In response to questions by Commissioner Dwight Simpson, Chairman Tseklenis explained that the hospital is administered by a small group of people without any oversight by the community or the City. Commissioner Boggs also responded that medicine has changed too, that there are more medical dollars going to the administration of medical plans and less to the care givers. Commissioner Dwight Simpson stated that the medical services you receive from the hospital will always be very good with professionally trained, ethical medical staff which is far removed from the administration aspects of the hospital. The bottom line is can they keep the doors open without going bankrupt. Vice-Chairman Hutchinson explained that in 2001, the hospital had a $18 Million operating loss, but with investment income of $11 Million, ended up with a $6 Million deficiency of revenues over expenses. In 2002, they had only a $16 Million operating loss, but with investment income down to $6 Million, ended with a greater deficiency of revenues over expenses in the amount of $9 Million. There was general discussion regarding the list of board members on pages 23 and 24 of the income tax returns vs. the members of the “Super Board”. It was mentioned that Alan Korneff is both the CEO of the hospital as well as the CEO of the parent organization. Commissioner Boggs stated that an Organizational Chart would help to clarify this. Secretary Midstokke was requested to convey this request to Assistant City Manager Lee Powell. City Hospital Comm. Minutes 08-06-03 3 VI. ADJOURNMENT: 6:00 p.m. It was moved by Commissioner Vasquez, seconded by Commissioner Boggs and unanimously adjourn carried (8/0) to to 5:00 p.m., November 5, 2003, in the 2nd Floor Training Room of Downey City Hall. ___________________________ Kathleen L. Midstokke, Secretary (Note to Minutes requested by Chairman Tseklenis on August 21, 2003) “Subsequent to the meeting on August 11, 2003, Assistant City Manager Powell mailed a copy of the Hospital organizational chart to all Commission Members. The chart was derived from statements in the notes to the Financial Statement. Mr. Powell has also requested from the IRS tax forms filed by the “parent organization” which would hopefully show the Board Members of the parent organization.” City Hospital Comm. Minutes 08-06-03 4