MINUTES FOR THE ANNUAL JOINT MEETING
ASHLAND CITY COUNCIL/ASHLAND COMMUNITY HOSPITAL BOARD
August 7, 2012
1175 E. Main Street
Councilor Voisin called the meeting to order at 6:45 p.m. Mayor Stromberg arrived at 6:50 p.m.
Councilor Morris, Lemhouse, Slattery, Silbiger and Chapman were present.
CEO Mark Marchetti and Board Director Doug Gentry were introduced and presented the annual report.
Mr. Marchetti commented on the challenges that the Ashland Community Hospital (ACH) has dealt with over the past few years. Despite these challenges, the hospital has been able to add services, increase volumes, improve productivity and reduce costs.
He went on to explain the need to affiliate with another hospital or healthcare organization as it was in the best interest of the long-term survival and growth of ACH. He stated that Huron Healthcare Consulting worked closely with the Board of Directors and Senior Leadership Team which lead to the following goals: Maintenance of broad range of inpatient and outpatient services; long-term financial support for services at ACH; support for ACHís core value of patient-centered care; commitment to the maintenance of employment at the hospital; support for the local primary care and specialty physicians and maintenance of ACH identity.
The work with Huron created a Confidential Information Memorandum (CIM) document, which was distributed to 23 potential partners. After carefully analysis, the Board entered into a ninety-day period of exclusive negotiations and due diligence with Dignity Health. This process continues and it is hoped that it will be completed with the next two months at which time, with Councilís support a binding Memorandum of Understanding will be signed formalizing ACH membership with Dignity Health.
Mr. Marchetti presented statistical data related to the fiscal year ending June 30, 2012 for ACH. The hospital generated gross revenue of $94.3 million, which resulted in $48.5 million in net revenue following deductions for contractual adjustments, charity care and bad debt. ACH had a total operating expense of $51.6 million and when combined with some non-operating revenue, resulted in a loss for the year of approximately $2.5 million.
The many accomplishments for ACH were noted along with significant capital purchases. Mr. Marchetti stated that the hospital industry is capital intensive and must remain current with equipment, systems, and technology in order to remain competitive in providing patients and physicians with the highest quality healthcare.
He noted the increasing federal government reporting requirements on hospitals related to quality and patient satisfaction. The HCAHPS Program (Hospital Consumer Assessment of Healthcare Providers and Systems) is the survey methodology for measure patient perception of the hospital experience. Participation in the survey process is required of all hospital participating in the Medicare Program.
ACH remains committed to the community it services and continue to operate student services in elementary and middle schools in Ashland and Talent. The hospital and its Foundation have support community organizations and activities through grants, sponsorships and participation in community celebrations and events.
Mr. Marchetti responded to questions by council that ACH does not currently offer abortion services, invitro (due to need of proper equipment) and that ACH does not interfere with doctor patient decisions. He stated that the new Memorandum of Understanding does not propose an established council liaison on the Community Board and that the Board of Directors and Dignity Health are working toward holding a public meeting in the near future.
Meeting was adjourned at 7:07 p.m.
Barbara Christensen, City Recorder John Stromberg, Mayor