Board discusses spending, future costs at Hospital

During the Hot Springs County Memorial Hospital board meeting Tuesday members approved changing the daily rate for a interim business office manager.

The previous rate was set at $585 per day and the board increased the rate to $650 per day after discussion.

While the cost is high, that rate includes the moving and living expenses of the interim employee as well as uncovered benefits.

The hospital has been working without a business office manager for about 30 days, and board members asked if the hospital could continue without hiring an interim manager.

Hospital chief financial officer Shelly Larson explained that while the hospital has operated so far by pulling people from other areas to fill that job, it isn’t a sustainable solution while looking for a replacement.

Additionally, board chairman Bill Williams said the hospital has paid this rate before and may need to in order to keep things going.

“If we want to keep the wheels a turning on this baby we need to get someone into the business office,” Williams said.

The board also extended their contract with Koerwitz, Michel, Wright & Associates to do their audit. However, some members felt that although the current company does a good job, it may be a good idea to get another company to do the audit for a year so that nothing is falling through the cracks.

The estimated cost of the audit was less than last years audit cost. This year is estimated to cost between $22,000 and $26,000 while last years audit cost the hospital $29,000.

The hospital will also be requesting $650,000 from the county at the upcoming county commissioners meeting for this coming fiscal year. This year the commissioners gave the hospital $200,000.

Part of the drastic increase in requested funds comes from the hospital’s need to buy a new magnetic resonance imaging unit that would bring the hospital up to speed on patient care.

Additionally, North Big Horn Hospital CEO Rick Schroeder talked about the benefits of having a hospital district based on his experience in Lovell.

According to Schroeder, the hospital district that serves the North Big Horn Hospital brings in approximately $1.2 million dollars a year. That number is based on the money raised by six mill levies.

Because of the district, Schroeder said the hospital is able to operate while bringing money in – an accomplishment he said would be much harder without the tax base.

“We really don’t owe anybody any money,” Schroeder said.

Schroeder said because of this, the hospital has been able to get up to date with the equipment quicker than they could have without.

Additionally, one years worth of tax levies has paid off the unfunded debt that the hospital sees from patients who will more than likely never pay their bills.

“That is, the community has taxed itself to pay for the community,” Schroeder said.

Yet, some community members questioned how having a hospital district would be beneficial to building a new hospital. While it would add a good amount of revenue to the hospital’s resource pool, it wouldn’t come close to paying for a new facility which low estimates say would cost a little more than $12 million.