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HomeMy WebLinkAbout11-02-05 MINUTES OF THE DOWNEY CITY HOSPITAL COMMISSION REGULAR MEETING NOVEMBER 2, 2005 I. CALL TO ORDER The Downey City Hospital Commission Regular Meeting was called to order at 5:04 p.m., November 2, 2005, in the 2nd Floor Training Room of Downey City Hall, 11111 Brookshire Avenue, Downey, California. II. ROLL CALL Present: Jerry Silby, Chairperson Sharisse Molyneux, Vice-Chairperson Diane Boggs Chuck Hutchinson Harold Tseklenis Absent: Diane Lumsdaine (excused) Dwight Simpson Julie Simpson Rachel Villalobos Also Present: Lee Powell, Assistant City Manager Joyce Doyle, Chief Deputy City Clerk/Acting Secretary III. APPROVAL OF MINUTES: August 3, 2005 It was moved by Commissioner Tseklenis, seconded by Commissioner Boggs and unanimously carried (5/0), to approve the Minutes of August 3, 2005. IV. DOCUMENTS SUBJECT TO REVIEW A. Hospital’s Tax Returns for Fiscal Year Ended 2004. Mr. Powell distributed copies of a list of Downey Regional Medical Center Board of Directors. The Commission reviewed the above referenced documents. Commissioner Boggs noted the Hospital’s legal fees were over $4 million. She pointed out that $117,667 in educational grants were awarded during the year. Chairman Silby said he also noticed the $5,237,000 in legal fees. He noted on page 11, “yes” was marked for lobbying activities while the line was left blank and no amount was listed on page 14. Commissioner Hutchinson noted on page 1, line 9a, the Hospital Charter Ball is still losing money. Commission Boggs noted on Statement 3, the Charter Ball gross revenue was $110,000 with the expenses being $251,000. Hospital Board Member Mary Lou Schmidt mentioned that in changing hotels for the ball the expenses have doubled. She feels the Charter Ball is not getting the coverage to draw support from the community and noted the Board is also very concerned about the ball losing money. Commissioner Hutchinson mentioned that page 4 indicates compensation of Board of City Hospital Comm. Minutes 11-02-05 1 Directors and in the past Board Members had not received any compensation. Ms. Schmidt responded not all Board Members take the stipend. It was her understanding that the Board had always received medical insurance and it was found this was not a legal benefit for volunteers. Board Members then received funds to purchase their own insurance. Commissioner Hutchinson discussed Downey Regional Medical Center (DRMC) President and CEO Allen Korneff’s salary and benefits as well as the benefits and salaries of other officers with Ms. Schmidt responding to various comments from the Commission. Chairman Silby noted on page 6, that line 47 indicated Accounts Receivable of $34 million less an allowance for doubtful accounts of $22 million. He confirmed with Mr. Korneff that the $34 million is mostly people uninsured, cash paying or not otherwise billable to Medicare or Medical or private insurance. Chairman Silby asked Mr. Korneff if this figure is improving over past years. Mr. Allen Korneff, President and Chief Executive Officer, DRMC-Hospital, responded no. He said DRMC is taking care of more indigent patients as the County has closed down approximately 12 clinics around Downey and that these patients are coming to the emergency room. The Hospital has gone from two to three percent bad debt to seven to eight percent over the past few years. Commissioner Hutchinson inquired if the Caremore liability was a factor in the $22 mllion allowance for doubtful accounts and Mr. Korneff responded no that Caremore is current and paying on time. Vice-Chairman Molyneux noted on page 7, Other Expenses, that some expenses seem to be doubling and tripling from last year. Mr. Korneff responded that healthcare is changing and the Hospital is incurring debts they have never seen before nor have been responsible for in the past. He noted that the State and Federal Government make mandates on the Hospital with no provisions for payment. There being no further comments, it was moved by Chairman Silby, seconded by Vice- receive and file Chairman Molyneux and unanimously carried (5/0) to . V. ORAL COMMUNICATIONS . Mary Lou Schmidt, DRMC-Hospital Board Member, mentioned that this is the first time since 1997 the Hospital had a profitable quarter. Allen Korneff, President and Chief Executive Officer, DRMC-Hospital, indicated while profits were not much, it was better than a loss. He discussed areas of improvement: changes in personnel, better contract negotiations and changes in billing and collections with much greater accuracy. Mr. Korneff noted an increase from $6 million to about $8 million a month in cash collections. Commissioner Boggs inquired if there is anything the City Hospital Commission can do to assist with any problems, noting that the Hospital Commission studies various documents submitted to the City pursuant to the lease agreement. She said public relations wise perhaps the Commission could have a role. Ms. Schmidt noted that there is a misconception in the community that many people believe the emergency room at the Hospital is closed. Mr. Korneff stated the Hospital’s biggest future concern is building a new hospital as mandated by the State and will involve a big collaboration by the City. He further added that parking and parking structures will certainly be forthcoming issues. City Hospital Comm. Minutes 11-02-05 2 Commissioner Boggs expressed concern regarding the ability to obtain a quorum to conduct meetings when there is an ongoing vacancy and there were three unexcused absences this evening. She noted that Commissioner Villalobos has not attended any meetings since her appointment. Chairman Silby responded that he would contact the appointing Council Members on this matter. Mr. Korneff gave an update on various projects, services and programs at the Hospital. Commissioner Molyneux thanked Mr. Korneff and Ms. Schmidt for meeting with Hospital Commission Members last month, noting it was very informative. Chairman Silby also thanked Mr. Korneff and Ms. Schmidt for meeting with Commission Members last month. He expressed his biggest concern with the Hospital is treating the uninsured. Chairman Silby discussed his participation in a national discussion group and what other States are doing with the issues of hospitalization costs for illegal immigrants and uninsured patients. Commissioner Boggs expressed that legislative problems in California need to be dealt with to keep the hospitals operating in the black. Mr. Korneff noted that Senator Lowenthal and Assemblyman De La Torre are working hard for the community. VI. ADJOURNMENT: 6:03 p.m. adjourned There being no further business, the meeting was to 5:00 p.m., February 1, 2006, in the 2nd Floor Training Room of Downey City Hall. ___________________________ Joyce E. Doyle, Acting Secretary City Hospital Comm. Minutes 11-02-05 3