HomeMy WebLinkAboutMinutes 08-04-04 Hospital Comm.
MINUTES OF THE
DOWNEY CITY HOSPITAL COMMISSION
REGULAR MEETING
AUGUST 4, 2004
I. CALL TO ORDER
The Downey City Hospital Commission Regular Meeting was called to order at 5:03 p.m.,
August 4, 2004, in the 2nd Floor Training Room of Downey City Hall.
II. ROLL CALL
Present: Chuck Hutchinson, Chairperson
Jerry Silby, Vice-Chairperson
Diane Boggs
Sharisse Molyneux
Russ Persion
Harold Tseklenis
Mark Vasquez
Absent: Nikki Utermohlen (excused)
Dwight Simpson
Julie Simpson
Also Present: Lee Powell, Assistant City Manager
Kathleen L. Midstokke, City Clerk/Secretary
III. APPROVAL OF MINUTES: February 4, 2004
There were two corrections to the Minutes as submitted. On page 2, paragraph 3, the word
“preferred” should be changed to “preferred ratio of current assets over current liabilities is 2 to 1”
and on page 3, paragraph 4, second sentence, the word “they” should be changed to “we”.
It was moved by Commissioner Boggs, seconded by Commissioner Molyneux and
unanimously carried (7/0), to approve the Minutes of February 4, 2004, as amended.
IV. DOCUMENTS SUBJECT TO REVIEW
A. Hospital’s Tax Returns for the Fiscal Year ended June 30, 2003.
Chairman Hutchinson noted that over the last three or four years the Downey Community
Hospital Foundation has lost over $30 Million.
Commissioner Boggs noted on line 54, Investments-securities, the fair market value is down
from $83,255,000 to $72,556,000, over an $11,000,000 decrease. She further noted total assets of
$165,245,465 and total liabilities of $92,282,617.
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Chairman Hutchinson pointed out that Statement 20 discloses that Allen Korneff received
compensation of $328,686 the subject tax year with $73,243 going to his retirement plan. He further
noted that Korneff received approximately $267,000 the prior year with $82,000 going to retirement.
Chairman Hutchinson noted that the hospital made about $57,000 on the sale of the old Rio
Hondo Hospital; $5,243 on the Golf Tournament (compared to approximately $20,000 last year) and
lost $91,378 on the Charter Ball (compared to losing approximately $47,000 last year).
Commissioner Boggs questioned whether this is the only public document that the IRS releases
for these types of tax exempt organizations. Chairman Hutchinson confirmed that this is the type of
document required for 501(c)(3) type corporations. Commissioner Boggs questioned whether this
document fulfills the requirements of the 1983 Lease with the City of Downey.
Assistant City Manager Powell clarified that the Lease Agreement only requires that Annual
Financial Statements be submitted and that tax returns are not actually mentioned in the Lease.
Commissioner Tseklenis noted that compensation paid for legal fees was approximately $3.7
Million.
Commission Vasquez inquired regarding the status of the lawsuit with Caremore Medical.
Chairman Hutchinson indicated that the hospital had an award of approximately $15 Million to be paid
over time in installments.
There being no further comments, it was moved by Commissioner Boggs, seconded by
receive and file
Commissioner Tseklenis and unanimously carried (7/0) to .
V.REQUIRED DOCUMENTS FROM THE FOUNDATION PER LEASE AGREEMENT
A.Certificate of Corporate Good Standing, State of California.
It was moved by Commissioner Boggs, seconded by Commissioner Molyneux and
receive and file
unanimously carried (7/0) to .
B.Current Report on Daily Hospital Service Charges, Wages & Salaries.
Vice-Chairman Silby indicated that there was $265,000,000 in write-offs to insurance
companies last year.
It was moved by Commissioner Boggs, seconded by Vice-Chairman Silby and unanimously
receive and file
carried (7/0) to .
VI. ORAL COMMUNICATIONS
– No one came forward to speak.
Commissioner Vasquez indicated that he is running for the Downey City Council, District One,
in the November election.
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Commissioner Boggs stated that she recently spent nine days in Centinela Hospital having bi-
lateral knee replacement surgery. In comparison, she feels the service received and the attitude of the
staff is superior at Downey Regional Medical Center.
Vice-Chairman Silby referred to a letter that was sent to all employees of Downey Hospital
stating that as a result of some accounting investigation, the hospital has agreed to repay the Federal
Government $2.2 Million as reimbursement for overcharges to Medicare. There is no admission of
any wrongdoing or criminal prosecutions pending.
VI. ADJOURNMENT:
5:40 p.m.
adjourned
There being no further business, the meeting was to 5:00 p.m., November 3, 2004,
in the 2nd Floor Training Room of Downey City Hall.
___________________________
Kathleen L. Midstokke, Secretary
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