HomeMy WebLinkAboutMinutes 02-04-04 Hospital Comm.
MINUTES OF THE
DOWNEY HOSPITAL COMMISSION
REGULAR MEETING
FEBRUARY 4, 2004
I. CALL TO ORDER
The Downey City Hospital Commission Regular Meeting was called to order at 5:04 p.m.,
February 4, 2004, in the Second Floor Training Room of Downey City Hall.
II. ROLL CALL
Present: Harold Tseklenis, Chairperson
Chuck Hutchinson, Vice- Chairperson
Diane Boggs
Sharisse Molyneaux
Russ Persion (arrived at 5:09 p.m.)
Jerry Silby
Dwight Simpson (arrived at 5:08 p.m.)
Julie Simpson (arrived at 5:08 p.m.)
Nikki Utermohlen
Mark Vasquez
Also Present: Lee Powell, Assistant City Manager
Joyce Doyle, Chief Dep. City Clerk/Acting Secretary
III. APPROVAL OF MINUTES: November 5, 2003
Commissioner Boggs advised she was absent from the November 5, 2003 meeting and would
therefore be abstaining from voting on the Minutes.
It was moved by Commissioner Vasquez, seconded by Commissioner Silby and carried (6/0),
with Commissioner Boggs abstaining; Commissioners Persion, D. Simpson and J. Simpson absent, to
approve the Minutes of November 5, 2003.
IV. ELECTION OF NEW OFFICERS: Chairperson and Vice-Chairperson
Commissioner Vasquez nominated Vice-Chairperson Hutchinson as Chairperson.
There being no further nominations, it was moved by Commissioner Vasquez, seconded by
Commissioner Utermohlen, and carried (7/0), with Commissioners Persion, D. Simpson and J.
appoint Vice-Chairperson Hutchinson Chairperson.
Simpson absent, to
Commissioner Boggs nominated Commissioner Silby as Vice-Chairperson.
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There being no further nominations, it was moved by Commissioner Boggs, seconded by
appoint Commissioner Silby Vice-
Commissioner Tseklenis, and unanimously carried (10/0) to
Chairperson
.
V. DOCUMENTS SUBJECT TO REVIEW
A. Downey Regional Medical Center-Hospital, Inc., Audited Financial Statements
for fiscal years ended June 30, 2003 and 2002.
Commissioner Tseklenis expressed concern over the ratio of the Hospital’s net assets to
current liabilities mentioning the normal ratio would be 2 to 1 and is now .675.
Commissioner Boggs expressed concern the figures were from seven months ago and not
more recent.
Commissioner J. Simpson referenced page 20, Number 6, Other Receivablesand asked if
there were any updates as to the outcome of the trial that was scheduled for January 2004, whereby
the Hospital filed a lawsuit against Caremore Medical (CMMC) for ceasing monthly payments in
November 2002 on the net advances due the Hospital pursuant to the terms of the 1999 Agreement.
Commissioner Vasquez said he heard that the Hospital lost the lawsuit.
Commissioner J. Simpson also referenced page 21, number 6, OtherReceivablesinvolving a
legal dispute between the Hospital and Caremore (CMG) based on the terms of the Risk-Share
Agreement, where a court-appointed referee was assigned to determine the accounting portion of this
dispute with findings to be issued in December 2003. She asked if anyone had heard the outcome.
There was no response.
Chairperson Hutchinson went over some of the figures in the June 30, 2002 Audited Revised
Financial Statement. Also, he referred to page 4, Statements of Operations and Changes in Net
Assets, where he figured the deficiency of revenues over expenses for the past four years as follows:
2000 - minus $2,953,000, 2001 – minus $6,377,000, 2002 – minus $9,630,000 and 2003 – minus
$11,809,000. He noted the Hospital is losing money steadily. He further mentioned an increase in the
Hospital’s Professional Fees
Commission Tseklenis said he went over previous Financial Statements and stated they have
been revised repeatedly. He noted net assets have declined since 1998.
Commissioner Boggs said it appears the Hospital’s main problem is loss of revenue and they
are trying to control other Hospital costs. She said there seems to be a national crisis and many
hospitals are operating in the red.
Vice-Chairperson Silby mentioned on page 4 of the Statements of Operations and Changes in
Net Assets, that Patient Revenues are down as well as Premium Revenues which reflects a lower
patient base. He said the costs should also be down and feels that the Hospital is not doing a great
deal to control costs.
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Chairperson Hutchinson went over page 5, Statements of Operations and Changes in Net
Assets, noting it also reflects a decrease in assets.
Chairperson Hutchinson mentioned on page 13, the Hospital had changed their professional
liability and self-insurance program. He briefly went over pages 16, Investments, with Commissioner
Boggs noting the effect of the stock market on investments overall, page 19, Hospital Facilities under
Capital Lease, page 20, Other Receivables, and page 23, Long-Term Debt with the Commission.
Commissioner J. Simpson expressed concern about the adverse monetary affect the legal trials
are having on the Hospital’s financial position.
receive and file
There being no further comments, it was so ordered to the 2002 and 2003
Financial Statements. Commissioner Boggs stated we are extremely concerned over the financial
status of the Hospital.
VI. REQUIRED DOCUMENTS FROM THE FOUNDATION PER LEASE AGREEMENT:
The Commission reviewed the following documents:
Accreditation Certificate 2003-2006
Hospital State License 6/30/03 to 6/30/04
Board of Directors’ Profile 200-32004
Certification of Liability Insurance Coverage
Certification of Balance in Repair Fund
Chairperson Hutchinson mentioned that 51% of the Foundation’s Directors still reside in
Downey and four have businesses in the City. Commissioner Boggs said this could change in June
when some of their terms end.
Chairperson Hutchinson stated the only two missing documents are the Certificate of
Corporate Good Standing-State of California and Current Report on Daily Hospital Service Charges,
Wages and Salaries.
There being no further comments, it was so ordered to receive and file.
V. ORAL COMMUNICATIONS
– No one came forward to speak.
Commissioner Boggs asked that the Commission’s concerns regarding the Hospital’s finances
be relayed to the Council with the hope that they are monitoring the situation.
Vice-Chairperson Silby said that while everyone has concerns about the Hospital, he thinks
some of the problems and figures seen on the accounting statements are a reflection of the times that
all hospitals, doctors and insurance companies are going through. He mentioned that the statistics
show that almost 63.5% of the Hospital’s revenue comes from Medicare.
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Commissioner J. Simpson said that since so many hospitals are closing their doors, she hoped
that this being an election year, perhaps there could be reform to help the situation.
VI. ADJOURNMENT:
5:49 p.m.
adjourned
The meeting was until the next scheduled meeting, May 5, 2004, at 5:00 p.m., in
the 2nd Floor Training Room of Downey City Hall.
___________________________
Joyce E. Doyle, Acting Secretary
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