SPARTA COMMUNITY HOSPITAL DISTRICT
BOARD MEETING MINUTES
Date: March 15, 2016
Members Present: Dennis Ernsting, Chris Haury, Gary Stephens, Alene Holloway, Lynette Jalivay and Claudia Kerens
Others Present: Joann Emge, Paul Mueller and Angela Oathout
Members absent: Nathan Lee, Kay Hapke and Kevin Wilson
Meeting called to order at 7:00 p.m. by Mr. Ernsting.
Item
Discussion
Action, Resolution, or Follow-up
Mr. Ernsting presented Board minutes from February 16, 2015 for
Ms. Holloway made a motion to approve
Approval of Minutes
review.
minutes and Ms. Kerens seconded. Motion
carried.
Mr. Ernsting asked for a motion to allow board member Nathan Lee
to attend via telephone.
Ms. Kerens motioned to allow Nathan
Lee to attend via phone and Ms. Jalivay
seconded the motion.
On Roll Call: Ms. Kerens; Yay, Mr.
Stephens, Nay; Mr. Ernsting, Nay;
Mr. Haury, Nay; Ms. Holloway, Yay;
Ms. Jalivay, Yay
Following the roll call the motion was lost
as the result of a tie vote.
Financials
Mr. Stephens shared the treasurers report
Paul Mueller presented the financials for February:
Mr. Stephens made a motion to approve the
Treasurer’s Report as presented and file
subject to audit. Ms. Kerens seconded,
motion carried.
Balance Sheet
Cash and Investments
 Cash decreased $353,852 or 5% in comparison to January.
Day’s cash on hand decreased to 86. We
Measure unfavorably to the performance indicator
established at 90 days.
Accounts Receivable
 Total system gross accounts receivable decreased $12,887.
 Total system Days in A/R (excluding claims reimbursed by
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the State of Illinois) decreased from 71 in
January to 70 in February. Our performance indicator is 62
days. Hospital patient gross accounts receivable decreased
$52,043.
 Hospital Days in A/R (including IL State) decreased from 91
in January to 88 in February.
 Hospital Medicaid gross receivables are $4,250,913
 Hospital gross receivables from State of Illinois’ self-funded
insurance plans for its employees and
retirees is $1,858,105
 Of the hospital gross A/R, 41% is greater than 90 days old
from discharge, with 39% and 72% of
 Medicaid and the State of Illinois’ self-funded insurance plan
greater than 90 days, respectively.
 Clinic gross accounts receivable increased $71,441 or 6%.
 Clinic gross A/R is 2.2 times current clinic revenue. We
measure unfavorably to the performance
indicator of 2 time’s current revenue.
Account Payable
 Accounts payable decreased $279,281.
 Current month has 11 days non-salary expense in A/P,
January had 18. We measure favorably to the
performance indicator of 30 days.
Income Statement
Revenues
 Inpatient revenues decreased $178,217 or 66% compared to
January.
 Outpatient revenues increased $381,635 or 13%.
 Emergency service revenues decreased by $83,918 or 6%.
 Swing bed revenues decreased by $15,396.
 Physician office revenue increased by $74,920 or 14%.
 Total system gross revenues increased $179,024 or 3%.
 System net revenues increased $125,134 or 5%.
 Gross revenue per calendar day is $184,493 vs. $184,719
budgeted.
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

Physician’s Report
CEO Report
Allowance of revenues is 49% vs. 49% budgeted.
Total system gross revenues, year-to-date are $2,859,831 or
6% below budget.
Expenses
 Salary and fringe benefit expenses decreased $118,138. Our
performance indicator is 50.5% of net
patient revenues; salary and fringe benefit expense is 56%
for February.
 Bad debts, we measured favorably (2.9%) to the
performance indicator of 5% of gross patient revenues.
 Total expense per calendar day is $89,548 vs. $86,489
budgeted.
 Expenses year-to-date are $959,730 or 5% under budget.
Dr. Salarda presented an update to the members of the board.
 Genetic Counselor: Dr. Salarda shared that Jennifer
Ivanovick was onsite to present information for genetic
counseling.
 340B Care Program: Dr. Salarda shared that the 340 B
program is being utilized by the PCP offices and it is helping
to alleviate the cost of prescription medications. Joann
added that the Steeleville Pharmacy is now participating.
 Medicare Wellness Visits: Dr. Salarda shared that the
wellness program is going well, Kathy Gimber, RN
continues to build the program.
Joann shared the statistics for the hospital for the month of February.
Med-Surg. Unit
Total Inpatients declining – 14 for the month
(38 Prior month)
Total Inpatient days – 26
(107 Prior Month)
Observation patients – 61
Total daily census 3.59
(5.90 prior month)
b. Center
New members
Sparta – 31 ~ Total members 626
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Marissa- 11 ~ Total members 159
c. ED Volume
712 ~ lowest volumes during the fiscal year.
d. Surgery Cases
163 ~ Peak for Fiscal year
 GI cases – 58
 Ortho – 47
 Pain Management – 18
 Urology – 19
 Cataract – 17
 General Surgery – 5
CEO report cont’d
She continued and shared that the inpatient census has declined and
the focus is to enhance the Swing bed program to increase this type
of stay to offset the IP volumes. The program will be named
“Transitional Care – Homeward Bound”
Expenditures:

PT/Center equipment - 6 items – Total $23,915.00
o
o
o
o
o



1 Elliptical cross-trainer machine - $4789.
2 Treadmills - $12,021.
Body Solid Dual leg extension/curl - $2564
300 lb. weight stack upgrade - $402
Hammer select hip and Glute machine $4139.
HVAC Unit for X-ray dept.
Proposal for MEP design – Three MEP presented
information, one was eliminated and two remain
Employee Health care/Wellness program expense.
QUALITY
 Quality Impact teams: A new team is forming to enhance
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employee engagement, called “The Employer of Choice
Team”.
 Compliance Plan: Joann shared the annual compliance plan
for 2016 – there were no changes to report.
 Joann shared the Annual Ethics Policy review for approval.
SERVICES

Patient Satisfaction Surveys: Surveys were sent and we are
starting to see results.
 Oncology: The oncology open house was held on March 1,
2016. Dr. Walshauser and Dr. Wade both attended as well
as several members of the community.
Elaine Poggi from Healing Art Photography and George
Anne Henderson were also in attendance to donate the
artwork for the clinic.
 Six-Sigma: A project is underway to reduce the number of
appointment that patients either fail to present or “no-show”.
A team has been formed to monitor and enhance the issue.
 340B program- Representatives from the program were
onsite to present information to the Medical Staff as well as
perform an organization audit.
PEOPLE
 The employee engagement survey is scheduled to begin
April 1, 2016.
 The next Leadership Development Initiative is scheduled for
March 16, 2016.
 Leadership Evaluation and Management tool (LEM): Joann
discussed how the LEM will impact leaders and staff.
 Board Education: Joann shared the annual IHA meeting will
be held June 8-9 in Springfield if any of the board members
would like to attend.
There will also be a webinar held in May regarding board
governance, more details as the date grows near.
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Executive Session
 Joann discussed the board self-assessment tool as well as the
CEO evaluation. She asked the members to complete the
assessments and return to Administration using the postage
paid envelope provided.
Paul Mueller and Dr. Elvira Salarda left the meeting at 7:30 p.m.
Regular Session
Minutes
Executive Session minutes from February 16, 2016 were reviewed
in executive session.
Executive session minutes from March 17, 2015 and September 15,
2015 were reviewed om executive session.
Ms. Kerens made a motion to go into
Executive Session at 7:30 p.m. for the
purpose of discussing legal and employee
matters, Ms. Holloway seconded. Motion
carried.
Ms. Holloway moved to return to Regular
Session at 8:05 p.m. Ms. Kerens seconded.
Motion carried.
Ms. Kerens made a motion approving
Executive Session minutes from February
16, 2016. Mr. Haury seconded. Motion
carried.
Ms. Kerens made the motion to defer
minutes from March 17, 2015 Ms. Holloway
seconded, motion carried.
Ms. Kerens made the motion to release the
minutes from September 15, 2015. Ms.
Holloway seconded, motion carried.
Committee Reports
Quality Council:
 Ms. Holloway shared the highlights from the February
Meeting
Finance Committee:
 Mr. Stephens shared the highlights from the finance
Committee.
Board Report:
 February board report focused on the “People” pillar and
discussed the annual turn-over rate, compliance plan and
updates on the “Journey to Excellence” teams
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New Business
Expenditures
Expenditures:
Expenses for Approval:
•PT/Center equipment - 6 items – Total $23,915.00
 1 Elliptical cross-trainer machine - $4789.00
 2 Treadmills - $12,021.
 Body Solid Dual leg extension/Curl - $2564
 300 lb. weight stack upgrade - $402
 Hammer select hip and Glute machine $4139
HVAC Unit for X-ray dept. –The recommendation was for
all bids to be rejected and referred back to maintenance for
further review.
Proposal for MEP design
Three MEP presented information, one was eliminated and
two remain, the proposal amounts follow:
 BRiC Partners: $52,600
 Ross-Baruzzini- $43,600
Employee Health care/Wellness program expense.
Plan Administration:
 2 year renewal of health plan service agreement at
$21.15 per member / month during year one; year two
$21.65 per member/month.
Estimated cost of $41,185 annually
 Utilization Review service $2.50/month for annual cost
of $4,830.
 Healthy merits wellness program $2.95. per month/
Mr. Stephens made the motion to approve
the equipment for Physical Therapy for a
total cost of $23,915.00. Ms. Kerens
seconded, motion carried.
Mr. Stephens made a motion to reject all
three bids and refer back to the Maintenance
department for further review. Ms. Kerens
seconded.
On roll call: Ms. Kerens, Yay; Mr. Stephens,
Yay; Mr. Ernsting, Yay; Mr. Haury, Yay;
Ms. Holloway, Yay; Ms. Jalivay, Yay.
Motion carried.
Ms. Kerens made a motion to approve the
lowest bid of $43,600 and to award the bid to
Ross and Baruzzini, Mr. Stephens seconded,
motion carried.
Mr. Stephens made the motion to the
following revision to the employee health
plan: 2 year renewal for an annual cost of
$41,185. 00, Utilization review
For a cost of $4,830 annually; healthy merits
wellness program for a cost of $5,700
annually plus a onetime fee of $500.00, Ms.
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member for a cost of $5,700 plus a one-time
implementation for of $500.00.
STOP/LOSS Reinsurance:
Increase the insurance deductible from $125.000 to
$130,000. Estimated annual cost $148,820.04
Network Discount Access:
 Change the SCH Plan network from Healthlink Open
Access to Coventry CMR cost of $14.95 per
member/month (estimated savings of $125,000 $140,000 per year and will save employees about 15% .
Plan Design Changes:
Increase Union Annual Deductible for Non SCH services from
$1500 – 1900.
Increase Non-union annual out of pocket for non-SCH services from
$5000 to $6000
Increase vision benefit from $25.00 to $50.00 per member /
dependent per year.
Kerens seconded, motion carried.
Mr. Stephens made the motion to increase
the Stop/Loss coverage to$130,000, Ms.
Holloway seconded, motion carried.
Ms. Holloway made the motion to change
the employee health plan form Healthlink
Open Access to Coventry, Ms. Kerens
seconded, motion carried.
Ms. Kerens made the motion to approve the
increase in the deductible from $1500 to
$1900 for non-SCH services, Increase the
out of pocket for non-union employees from
$5,000 to $6,000, to increase the vision
benefit from $25.00 per exam to $50.00. Ms.
Holloway seconded, motion carried.
Approval of the Ethics policy for 2016
Ms. Kerens made the motion to accept the
ethics policies as presented, Ms. Jalivay
seconded, motion carried.
Approval of the Compliance Plan 2016
Ms. Keren made the motion to approve the
compliance plan, Ms. Jalivay seconded,
motion carried.
Approval of the Medical staff applications.
Mr. Haury made the motion to approve the
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Adjournment
_____________________________________
Dennis Ernsting, Chairman
medical staff applications, Ms. Kerens
seconded, motion carried.
A motion was made by Ms. Kerens to
adjourn at 8:25 p.m. Ms. Holloway
seconded. Motion carried.
__________________________________________
Kevin Wilson, Secretary
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