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Hermann Area District Hospital Board of Director's February 2020 Meeting Recap

February 24, 2020

Hermann Area District Hospital

Board Recap

February 24, 2020

The Hermann Area District Hospital met Monday evening February 24, 2020 in regular session.

The Board had requested a presentation be prepared so Board members, Medical Staff, and hospital employees could share with our community the direction the hospital is going especially given the ongoing concerns over the status of rural healthcare and share the staff’s successes and challenges.  The Board reviewed the presentation and made suggestions before launching the campaign.

The Board reviewed pre-audit year end financials for the year just ended.  In preparation for the audit, the auditors prepared a preliminary Medicare cost report and reviewed accounts receivable.  The auditors determined that the hospital had not allocated enough for contractual adjustments so all indication is that we will show a loss for 2019 versus the profit was were projecting.  The loss will not be as large as in prior years given the $1.3 million reduction in salary and benefits.

The buy-out of Hermann Medical Arts is getting closer to being finalized.  The funds have been sent by FEMA to the City of Hermann but for the sale to be finalized USDA has yet to give their ok.  In other clinic discussion, in March we will have a family practice physician coming to town for an interview.  He is completing a fellowship in sports and exercise medicine.  Southwest Medical Associates will also be welcoming Kerry Struttmann, FNP to their practice.  She has worked for the hospital several years but has recently become a family nurse practitioner.

The Board was made aware that the Missouri HealthNet Division is proposing a reduction in Medicaid outpatient payment rates.  The change in their methodology will reduce our annual payment by almost $200,000 or a 34% reduction in Medicaid outpatient payments.  

The Board approved the following agreements.  Every two years the Board has to approve a Conflict of Interest Ordinance per Missouri statutes.  The Board was also made aware of an ongoing commitment to work with Mid-America Transplant regarding organ donations.  The Board approved an agreement with United States Department of Agriculture and their sponsoring bank to remove as collateral the Herman Medical Arts building so the sale of the building doesn’t have to go against the long-term debt but the funds can be held to use for clinic replacement when the time is right.  An audit engagement with WIPFLI was approved to conduct the audit and preparation of the Medicare and Medicaid cost reports for $47,000 which is up 2% from the prior year. 

The Board granted a student scholarship to a current employee, Pablo Los, LPN, to attend a three year RN bridge program at St. Louis Community College.  At the end of his education, he will work at least three years as a payback for the educational assistance.  This is a great assistance to the hospital since registered nurses are hard to locate.  Lastly, the Board approved an agreement with Accreditation Commission of Health Care to conduct a renewal inspection of sleep study services.  The Center for Medicare and Medicaid Services passed off this responsibility to private companies.

The Board voted to go into Executive Session to discuss personnel.  After discussion, no action was taken so they went back into regular session, and adjourned.