Hospital designs still being drafted, cost hammered down

In its monthly meeting the Wrangell Medical Center Board learned progress continues to be made in drawing up plans for a new hospital.

Hospital chief executive officer Robert Rang informed the board that architects with Juneau firm Jensen Yorba Lott are still hammering out designs, following a site visit in mid-March. At the moment the contractors are trying to reconcile staff’s “wish list” for a future facility with applicable standards, minimizing the building’s footprint where possible.

On the financial end, the accountant at BDO in Anchorage was looking at the hospital’s ability to pay for a new facility in the long term. Given its patient volume and low debt, Rang said “he felt WMC could finance $20-21M over a 30-year period.”

Rough estimates for a future hospital from six years ago had tacked a pricetag of around $24M to the project, but costs for the center currently being designed have yet to be determined. An estimate will come from JYL once the design is presented.

Once that comes in, Rang intends to follow up with the Borough Assembly to explore its options.

“There’s a lot of ways to finance that as well,” he added. Rang noted the most important thing to keep in mind in the process would be transparency, and appreciating risks down the line, such as revenue projections and patient capacity.

For present revenue, in his monthly report, finance director Doran Hammett said March had been a slower month than expected. Revenue was down for the month over that of the previous year by nine percent, with the FY17 year-to-date being down by only one percent in comparison.

The hospital should still conclude the month at about even. Hammett explained “meaningful use” money receivable from the state for 2015 and 2016 together amounts to $125,750.

“By the end of this month we will have received those funds,” he said.

The hospital’s credit with the borough’s $500,000 emergency account set up last year is down to $40,000, with regular payments continuing to bring that back down to zero over the next several months.

“Cash continues to stay at about 27 days,” Hammett added. Cash reserves were at $811,933 on March 31, sufficient to run the hospital for nearly a month. At the start of the fiscal year in July that amount had been at 17 days.

In personnel matters, laboratory technician Vincent Balansag is still working on returning from the Philippines, working through a visa renewal. Rang reported the process could take some time but WMC was helping as best it could. Balansag could be back within six months, he said.

One resignation in the

nursing department leaves a vacancy to be filled meanwhile by traveling staff. Even so, Rang pointed out the total

number of traveling staff has been greatly reduced since last year following a recruitment drive, which in turn has saved the hospital money in the process.

An interim manager has been brought onsite to review workflow in the hospital’s medical records department. Sent by billing contractor TruBridge, coverage of reallocated duties will be attended to while a permanent manager to the department is selected.

In her staff report to the board, Dr. Lynn Prysunka asked for its support in drawing in new volunteers for the high school’s junior firefighter program. She explained students partaking in the program are important to the continuation of the volunteer fire department.

At the request of the

hospital board, new invoices have also been prepared for use. The new bills will be issued with a detailed

description of services, costs, and costs already covered by insurance. The colorful slips also include versions for “past due” and “final notice” notifications.

 

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