FOR THE SPECIAL MEETING
ASHLAND CITY COUNCIL/ASHLAND COMMUNITY HOSPITAL ANNUAL BOARD
September 2, 2008
1175 E. Main Street
Mayor Morrison called to order at 6:45 p.m. the annual meeting of the Ashland Community Hospital Board (ACH).
Member Marie Donovan spoke on behalf of the Board of Directors and presented the annual report to the City Council. She noted that the Board had been focusing on strategic planning, on the hospital's financial health, the recruitment of physicians to the community and the need to acquire technology to meet the needs of patients and their physicians. The board has also worked to support the implementation of the Planetree model of physician-centered care.
Ms. Donovan announced that two new Board members had been appointed, Valri Williams and Tom Reid. She voiced appreciation for Marilyn Hanna who had left the Board after serving for many years and Dave Bernard who is currently serving as Immediate Past Chair.
She introduced Mark Marchetti, Chief Executive Officer for Ashland Community Hospital. Mr. Marchetti presented the report for the end of the 2008 fiscal year noting the following:
He explained how operating expenses had increased at a higher rate than net revenue after deductions for contractual adjustments, charity care and bad debt. Overall, hospital operations combined with non-operating revenues resulted in a small loss for the year. He provided examples on the financial issues facing the hospital over the past year and the responses the hospital has taken due to these financial pressures. The hospital undertook a major Innovative Initiative to identify and implement ways that they could be more efficient and generate an improved operating margin which involved a careful analysis of all areas of the hospital's operations. This initiative is expected to return the hospital to a more profitable position by 2009.
Mr. Marchetti presented the following hospital accomplishments:
He explained that the healthcare industry is technology driven and that over the past year ACH had invested approximately $1.95 million in enhanced technology. In addition, ACH is committed to the support of education for its staff and that continuing education by employees was supported and numerous community activities and educational programs were being sponsored. Of greatest significance, he noted that the hospital had provided approximately $8.4 million in uncompensated care in fiscal year 2007-2008, which includes approximately $1 million in charity care, $2.5 million in bad debt write-offs, and $4.9 million representing the shortfall in payments through the Medicare and Medicaid Programs.
Mr. Marchetti proposed the following as goals for the new fiscal year:
Meeting was adjourned at 7:00 p.m.