ER Visits Down, Patients Leaving Against Medical Advise

During the Wednesday, June 25 KVHD Finance Committee Meeting, CFO John Lovrich reported to the Board of Directors about the budget. He told the directors that the fiscal year would be over at the end of June and provided some solid numbers.

Lovrich announced to the board that the numbers of Emergency Room visits from patients was down at Kern Valley Hospital. Lovrich said that there were still a lot of patients leaving, against medical advice, against doctor's orders, and not being seen.

Lovrich said that the insurance companies seem to be trying to push everybody out so the companies don't have to pay.

Director and board Treasurer Gene Parks asked how the hospital would handle it.

Lovrich said it is cheaper for insurance companies to discharge patients, and let them return as outpatients for rehab, than it is to pay for per diem.

CEO Tim McGlew said that the insurance companies pushed more for observation beds. Reimbursement for observation beds is cheaper yet provides the same level of nursing care.

According to Lovrich the discharges at Kern Valley Hospital are under budget for this report. The hospital is below budget, on just about everything, except for long term care, which is actually up. The long-term care census is up with a number at 54.

In May the retail pharmacy scripts were over budget by $2300. and would probably maybe be $6500 over budget for June.
The pharmacy employees working on the weekend would have to be paid over time.

Expenses were up, peaking at about 26% and McGlew thinks 30% would be the ceiling.

They have a family practice physician and a couple other physician candidates the hospital may consider for hire.

On page nine of Lovrich’s report, on the balance sheet for June, the cash was at $21 million, compared to May's monthly balance at $18.6 million because the hospital received, May 8, a check for $4.7 million. KVHD should be getting other funds overdue through Kern Health from a whole new program.

The hospital still has about $500,000 in auxiliary cash. Maintenance wants a new truck or van that the district could consider using the money for. The maintenance van Maintenance has needs more repairs than is worth continuing.

Gross revenues are below budget except for the Retail Pharmacy, which is double the budget. Salaries and wages are a little bit over budget because nurses got an increase.
Contract labor is down because KVHD converted contract labor to employees.

Treasurer Parks expressed concerns about everything going up in the budget.

The district has been attempting to attain a credit card machine for the KVHD Thrift store for customers to use credit cards with.

Employees are requesting the conference expenses they already paid in for a conference they attended "We spent five grand on the expense to go to this conference. But we're saving $16,000 on CPSI expenses. We would not get that savings if we didn't go to the conference," Lovrich said.

There will be another conference for CAC in October in Dallas.