KENNEWICK PUBLIC HOSPITAL DISTRICT KENNEWICK, BENTON COUNTY, WASHINGTON BOARD OF COMMISSIONERS BOARD MEETING Trios Mission: We are a unified team of healthcare professionals delivering quality and compassionate care to improve the health and well-being of everyone we serve. 5 p.m. Thursday, May 26, 2016 Conference Rooms C&D COMMISSIONERS PRESENT: Marvin Kinney, Jim Mefford, Wanda Briggs, Richard L. Reil, Mike McWhorter, Don Campbell EXECUTIVE STAFF: Glen Marshall, Brenda Atencio, Tony Sudduth, Brad Gould, Russ Keefer, Dr. Wassim Khawandi, Dr. Randall Fong, Mary T. Schumacher STAFF MEMBERS: Lisa Worthington, Ken Daniel, Rachel Jahn, Michael Porter, Rene Norman, Kris Sherrill, Jessica Wells, Dr. Hani Murad, Lisa Teske, Sue Lemon GUESTS: Lester Dougherty, Jeanette Mefford, Pat Johnstone-Jones, Vic Johnson, Dr. Chris Kontogianis, Connie Kittson, Nikki Ostergaard, Dave Praino, Cedro Rodriguez, Dr. Heather Phipps, Jan Darrington, Steve Blodgett, Sara Schilling CALL TO ORDER: Marvin Kinney, Chairman, called the meeting to order in Conference Rooms C&D at 5 p.m. I. DISTRICT BUSINESS: A. Approval of Consent Agenda* The materials listed under the Consent Agenda are considered routine by the Board of Commissioners, and are adopted by one motion. There will be no separate discussion of the following items: Approval of the previous month s Board minutes Approval of warrant register/revenue fund (outlined below) Approval of construction, Trios Medical Group Funds, medical dental trust, Adult Day Services funds, and other miscellaneous funds (outlined below) Acceptance of financial report Statistics Trios Southridge Naming Opportunities KPHD Write-offs 1
However, an item may be removed from the Consent Agenda and considered separately if the Board members desire further discussion. As of this date, the Board of Commissioners unanimously approves by a majority vote, the payment of those items included in the Consent Agenda and further described as follows: Accounts payable and payroll funds 443885 to 445040 and 300548 to 300562 and 4/16/16 to 4/29/16 in the total amounts of $7,862,468.62 and $5,659.31 and $4,559,469.47 and $5,033,026.41. Construction, KGH Physician Clinics Funds, Medical/Dental Trust, Adult Day Services 11406 to 11543 in the total amounts of $136,623.05 and $23,188.38. IT WAS MOVED AND SECONDED TO APPROVE THE CONSENT AGENDA AS SUBMITTED. Motion carried. B. Public Comment Victor Johnson, former Board member, asked to address the Board about the opening on the Board created by the death of Kathy Davidson. He expressed his sympathy to Duane Davidson and his family for the tragedy that occurred. He indicated his willingness to fill the Board vacancy for the remainder of her term. He was not sure how the Board planned to seek a replacement, but wanted them to know that he is ready to throw his hat in the ring and help the Board continue to move forward. The accomplishments that Trios Health has made over the last 10 to 20 years is amazing, and he would like to see that momentum continue. The Board needs to continue to move in a direction that promotes Trios Health s growth. The Board has a lot of work left to do, and he feels he has the experience to offer and offers his help. Dr. Chris Kontogianis, former Board member indicated that his comments are directed to the Board as a whole and to the Chairman. He indicated that he represents himself and other physicians that could not attend the meeting this evening, both employed physicians and independent physicians. He encouraged the Board to come together as a team and put aside any differences they may have for the good of the whole. He also said the opening that occurred was a tragedy, and he would also support Mr. Johnson joining the Board to complete Ms. Davidson s term. Many years ago the Board was in a similar situation and he was asked to join and help serve which he did. He is concerned about the rift that has occurred among Board members and feels that recruiting someone to the Board that has no experience or history with the group will create more problems. He does not feel that the Board can afford a 3-month or longer delay as they need the guidance. C. Membership/Liaison Reports: 1. Tri-Cities Cancer Center Wanda Briggs reported that their board always cancels their May and December meetings. However, in April they reflected a positive bottom line. Their patient volume continues to grow. They have newly constructed space and some of their clinical staff have moved into that space. The Center recently won an Aster Silver Award for their crushing cancer marketing campaign. 2
2. Trios Medical Group Provider Operating Committee (POC) Marv Kinney reported that their meeting was dedicated to the Studer leadership training. The attendance was excellent and included members of their new committee structure. 3. Trios Foundation Jim Mefford reported that: Brad Gould, TMG Executive Director, made a presentation on the future of health care and the Foundation s role. On April 22 nd the Foundation co-hosted a breast and cervical cancer screening for low income, under-insured women and it was well attended. The Southridge capital campaign celebration will be held in Bistro 52 on June 2 nd and they will unveil a new plaque. The Foundation is a major sponsor for the Senior Life Show on June 9 th. They are sponsoring the keynote speaker and the luncheon. June 17 th is the annual Golf Tournament at Canyon Lakes. There are still openings for 8 teams. Camp Trios for kids with Type I diabetes will be held July 26 th to 28 th at the Southridge Sports Complex and Tri-City Court Club. Fundraising continues and currently they have raised $25,000 of a $30,000 goal. 4. Adult Day Services Richard L. Reil reported that Adult Day Services is a 501C3 corporation so they are able to receive funds from United Way. He introduced Cedro Rodriguez, Adult Day Services Board member, and Michael Porter, Director. He reported that: They are adding a patio to their facility that will be used for leisure and outdoor therapy. Are moving away from Meals on Wheels and meals will be provided by Trios Health in the near future. They conduct a client survey each year and the results will be presented next month. In memory of Kathy Davidson, KPHD Board member who passed away in early May, her family asked that donations be made in her name to Adult Day Services. Currently, they have received $800 in her name, and the Medical Staff just donated $5000. Many thanks to all who honored her memory in this way. Patient volume continues to grow and they continue to maintain a positive bottom line. II. HOSPITAL BUSINESS: A. Executive Report 1. CEO - Glen Marshall The CEO reported that: 3
the 6 th floor construction is complete and physicians and services have begun to move in to their new space. The medical oncology and infusion therapy services will move around June 20 th. By the end of June all moving should be complete and one office space will be completed, but remain open for an interested tenant. A third oncologist will join us in July, and a female OB will join us in early October. Recruitment continues in other specialties. Management continues to work with Lourdes on collaborating in the areas of urology and mental health. The Board has asked the CEO previously to research possible local, legal representation. He has asked for information from Miller, Mertens and Comfort; Hames Anderson & Whitlow and Kuffel, Hultgren, Shea & Ellerd. The CEO reported that Rachel Jahn and Bruce Epps of Trios Health have been working with Ben Franklin Transit to identify a more suitable spot for a bus stop. He has been told that the stop should move to the front of the Trios Care Center by May 31 st. B. Medical Staff Report 1. Randall Fong, MD, Medical Staff President As reported above, Dr. Fong indicated that the Medical Executive Committee was saddened by Kathy Davidson s death and voted to honor her memory with a $5000 donation to Adult Day Services. They also voted to donate $7500 to the Employee Association for their activities. He thanked Marv Kinney for attending the MEC recently and updating them on the Board s action to entertain a 3-year management proposal from Quorum Health Resources and the rationale behind that decision. The Medicine Department approved a bronchoscopy order set. A brief discussion ensued at their meeting about the acquisition of a DaVinci Robot for surgery. Administration is looking into the possibility of leasing the equipment and more information will follow. III. NEW BUSINESS: A. Committee Reports/Recommendations 1. Planning Wanda Briggs, Chairman a. Meeting Report Ms. Briggs reported that the Committee discussed possibly holding a mini strategic planning retreat this year and more information will follow about that. The CEO planned to return to the meeting next month with options to consider. The CEO reported that the lobby at the Auburn site has been updated with paint and furniture and looks much nicer. He has received estimates on moving post-partum patients to the former Med-Surg space. The largest expense will be to move the infant security system. They also plan to explore remodeling and moving some physicians to clinical space in the Spaulding Building. 4
2. Finance & Audit Marv Kinney, Acting Chairman a. April Financials Marv Kinney indicated that in light of Kathy Davidson s unexpected death, he acted as Chairman for the May meeting. He asked Jim Mefford to assume the chairmanship going forward, and he accepted. At the end of April, consolidated net loss was $638,968.00, and days operating cash on hand were 4.5. Patient volume slowed in April. The CFO updated the Board on the remaining financials. Discussion followed and it was indicated the 2016 Operating Budget projects $5 million in free cash at the end of this budget year. We are currently about $2.5 million behind budget so that means we will have to make up a large sum by the end of the year. The CFO indicated that were heavily front loaded in the early months of this year s budget. However, based on the current financial statistics he is confident that we will achieve the $5 million projected by the end of the year. Discussion also occurred about accounts payable. b. Medical Residency Program Expansion* The Committee asks for the Board s consideration of a recommendation to expand the Medical Residency Program to the required ACGME minimum requirements. Trios Health is currently in its 3 rd year of the program and will host its first graduates in June. If the program fully expands to nine (9) residents per year (4-FM & 5-IM); the positive net contribution will be approximately $1.5 million. This expected contribution is also consistent with the proforma developed by Germane Solutions in 2013. If the Board chooses not to expand the program, we will not receive accreditation by ACGME and will not be able to accept new residents after July 1, 2017. Management would then have to slowly close the program over a 3-year period and lose the $1.5 million net contribution. We also would most likely have to return a recent grant received from the state of Washington in the amount of $250,000. It was indicated that Management feels this expansion is a good business decision for the District. However, should that change in the future, we are able to opt out of the program at any time. Discussion followed. IT WAS MOVED AND SECONDED TO AUTHORIZE MANAGEMENT TO PROCEED WITH COMPLETING AND SUBMITTING THE REQUIRED ACGME ACCREDITATION APPLICATION ON OR BEFORE JULY 1, 2016 FOR THE RESIDENCY CLASS BEGINNING JULY 1, 2017. Motion carried. c. Resolution #2016-2 Surplus Equipment* The Committee recommends that the Board adopt Resolution #2016-2 to surplus various pieces of outdated District equipment. IT WAS MOVED AND SECONDED TO ADOPT RESOLUTION #2016-2 TO SURPLUS VARIOUS PIECES OF OUTDATED DISTRICT EQUIPMENT AS RECOMMENDED BY MANAGEMENT AND THE FINANCE AND AUDIT COMMITTEE. Motion carried. 5
IV. COMMISSIONER COMMENTS: Comments made included: Marvin Kinney indicated that they needed to take action on two items this evening that were not included on the agenda. First they need to appoint a secretary to the Board. In researching the RCWs he found that public hospital districts are to elect a president and secretary from their ranks, but there is no requirement to appoint a vice-president. Therefore, he would like to suggest that they suspend the appointment of a vice-president and appoint Jim Mefford as secretary. Rick Reil felt that was a good suggestion and made the following motion: IT WAS MOVED AND SECONDED TO SUSPEND THE VICE-PRESIDENT POSITION AND APPOINT JIM MEFFORD SECRETARY OF THE BOARD. Discussion followed. Wanda Briggs indicated that she disagreed. Although State law does not require a vice-president, traditionally the KPHD Board has had a president, vice-president and secretary and it has worked well. She made the following motion: IT WAS MOVED TO APPOINT MIKE MCWHORTER SECRETARY OF THE BOARD. Ms. Briggs was reminded that there was already a motion on the floor. The first motion was voted upon and passed. Comment was made that once the Board is back to their full complement of 7 members, reconsideration of a vice-president position can occur. The Chairman also indicated that they need to consider candidates to complete Kathy Davidson s term, and he would like to suggest advertising for candidates and having them interview. The Board has utilized that process in the past and it worked well. He distributed packets of information outlining a process. Discussion followed with the Board agreeing to advertise for candidates with applications being received by June 20 th. A special Board meeting could then be held on June 23 rd for the purpose of interviewing those interested. Rick Reil indicated that his wife had surgery at Trios Health this week. She is doing very well and will go home tomorrow. He thanked the staff and providers for their excellent care, and the caring shown his wife. Wanda Briggs indicated that she appreciated the positive feedback from Mr. Reil. She said it really is a wonderful organization, with great and wonderful people working here. She felt it was important to focus on that and thanked Mr. Reil for reminding everyone of that. Mike McWhorter appreciated everyone attending the meeting this evening, as did Don Campbell. Jim Mefford indicated that he will be interested to see if anyone in this community can match Vic Johnson s experience. V. BOARD MEETINGS/EVENTS/EDUCATION: A. Next Board Meetings 1. Thursday, June 9 th @ 5 p.m., 3 rd Floor Conference Rooms C&D 6
2. Thursday, June 30 th @ 5 p.m., 3 rd Floor Conference Rooms C&D VI. EXECUTIVE SESSION (RCW 42.30.110 and RCW 70.44.061-1 and 2): OPEN: Per RCWs 42.30.110 and 70.44.061-1 and 2, the regular meeting was adjourned to Executive Session for the purpose of reviewing the following: Medical Staff Privileges Quality Council Minutes Dashboard Indicator/Clinical Scorecard Report Patient Flow Dashboard The Session will take about 20-minutes and then open for action. A short recess was taken at 6 p.m. The meeting closed to Executive Session at 6:08 p.m. The meeting opened for action at 6:28 p.m. ACTION: IT WAS MOVED AND SECONDED TO APPROVE THE MEDICAL STAFF PRIVILEGES AS RECOMMENDED BY THE MEDICAL EXECUTIVE AND JOINT CONFERENCE COMMITTEES. Mike McWhorter declared a conflict of interest and recused himself from the vote. Motion carried. ADJOURNMENT: There being no further business, the meeting adjourned at 6:29 p.m. Respectfully submitted, Mary T. Schumacher Recorder Marvin Kinney, Chairman Jim Mefford, Secretary 7