Hospital board approves audit

Tuesday evening, the Hot Springs County Memorial Hospital Board of Directors accepted the audit for the financial statements of the business-type activities of the hospital, as of and for the years ended June 30, 2017, and 2016.

Michael Wright, who presented findings of the audit to the board, noted there were no instances of noncompliance on the part of the hospital. As part of obtaining assurance as to whether the hospital’s financial statements are free from material misstatement, compliance tests are performed in regard to certain provisions of laws, regulations, contracts and grant agreements. Noncompliance could have an effect on the determination of financial statement amounts.

According to the financial highlights of the audit, total assets were $11,912,282 at fiscal year end (FY) 2017 and $12,675,614 for 2016. Total liabilities were exceeded in amounts of $8,925,234 for FY 2017 and $9,067,189 for 2016. The hospital’s net assets decrease in FY 2017 by $141,955 or 1.57 percent, and increased in 2016 by $524,952, or 6.15 percent.

The hospital decreased cash in FY 2017 in the amount of $336,856 and increased cash in 2016 in the amount of $83,711. This does not include cash restricted funds.

Capital asset purchases were $549,267 in FY 2017 and $2,270,393 in 2016. The hospital reported a net operating income loss of $422,643 in FY 2017 and an income of $241,388 in 2016. Total operating revenue decreased $78,118 in FY 2017 and increased $218,494 in 2016. Total operating expenses increased $585,913 in FY 2017 and decreased $378,130 in 2016.

In other action, the board approved three recommendations provided by Jackie Martinez, in regard to the employee benefits. Martinez is one of a 12-person Employee Benefit Committee tasked with evaluating and making decisions regarding the benefits.

The first recommendation Martinez presented was a switch in record keeping service providers. She noted the hospital had been using American United Life (AUL) for 25-30 years, but the provider had proposed an increase in investment fees charged to the hospital’s retirement plan from about .7 percent to .81 percent.

After reviewing AUL’s proposal, as well as three other firms, it was recommended the hospital switch to the service provided by TIAA. Chief Financial Officer Shelly Larson noted TIAA also had guaranteed fund for investment purposes, which met about 22 percent of what the hospital has invested in the retirement fund.

The second recommendation was in regard to renewal of a group dental and health insurance plan for hospital employees. At a meeting about the plan, a representative of Cherry Creek Benefits presented the original renewal, which reflected a 22 percent increase in total premiums with no change to benefit structure.

Cherry Creek also provided other options, in which the benefit structure would be changed, and the deductibles increased. This resulted in a 7.5 percent increase in savings. It was also recommended a Health Reimbursement Arrangement (HRA) be put into place to allow the hospital to buy back down the increase in deductibles.

As for dental insurance, the approved recommendation was an increase of 2.56 percent.

Also during the meeting, hospital CEO Margie Molitor read from an official report regarding a recent trauma survey. The report praises the hospital’s being fully designated a community trauma hospital through three site reviews since 2011, a feat few hospitals in Wyoming have achieved. The designation, the report states, is evidence of the level of commitment to provide quality care to the community.

Looking at the financial pillar, Larson reported the days in accounts receivable are still being maintained. The number of days is at 43, and expected to be at 45. There is still a struggle , Larson said, with improving days cash on hand. The goal is 62, but the hospital is only at 41.25. Larson noted some of that is because the hospital has made some payments that will be reimbursed through a SLIB grant, and they are accruing a fairly significant receivable from Medicare for the current year reimbursement.

The board also conducted elections, though the officers will remain the same with Bill Williams as chair, Heath Overfield as vice chair and Dan Herdt at secretary-treasurer. Committees will also remain the same.