Darryn McGarvey of CliftonLarsonAllen came before the North Shore Health hospital board on May 23 with a 2018 financial audit.
“Darryn didn’t have any recommendations as a result of the audit,” said North Shore Hospital administrator Kimber Wraalstad. “We had an unqualified audit opinion and did not have any auditor proposed adjustments. It was a good audit report.”
Other great news came the next day when Kimber was asked about the proposed statewide cuts that, if passed, would negatively affect the funding of Minnesota’s care centers.
“The proposed cuts to the Care Center Value-Based Reimbursement were NOT included in the final Health and Human Services Budget Bill. It was very good news,” said Wraalstad. “I heard from Representative (Rob) Ecklund on Friday (May 24) that the cuts were not included. The cuts were originally in the House HHS budget bill and not the Senate HHS budget bill. He was optimistic but reminded me the budget hadn’t passed at the time he called me. That was my birthday present! So yes, our reimbursement will remain the same, not cuts.”
If the bill had passed as initially presented, it would have cut about $220,000 per year from North Shore Health and the nursing home would have stood to lose $220,000 per year to start with, and more as time passed.
Another issue the Minnesota legislators have wrestled with that affects hospitals, physicians, chiropractors, dentists, etc. (but not nursing homes) is the Provider Tax.
The provider tax has been in place for the last 27 years. It was reduced from 2 percent to 1.8 percent, and the sunset was removed.
What is the Provider Tax, you ask?
Kimber explained it this way, “We pay the tax on payments for services provided with some exceptions such as Medicare payments, VA/Tricare and a few others. This tax is used to fund the Health Care Access Fund (HCAF). Had the sunset of the tax occurred, a $970 million loss in funding for the 2020-21 biennium and a $1.5 billion loss in funding for the next biennium would have been created.
“The Minnesota Hospital Association and other health care groups supported the repeal of the sunset as we believed this could have jeopardized health care access for thousands of low-income Minnesotans and destabilized Minnesota’s health care sector. The HCAF has, at times, generated a surplus. A mechanism to prevent non-health care uses of the HCAF would be appropriate and will be addressed in the future.”
Management report
North Shore Health Director Kimber Wraalstad brought good news to the hospital board on May 23, informing the board that North Shore Health had been awarded a $125,000 Rural Health Capital Improvement grant.
The funds will be used to help purchase a new ambulance.
The hospital is responsible for 20 percent matching funds for the ambulance, which is estimated to cost about $190,000.
Wraalstad thanked Vera Schumann for her work in preparing and submitting the grant application, and Steve DuChien for his work in gathering the needed information.
North Shore Living’s second Block Party went well, noted Wraalstad. The party was held May 9 for the Waves Household, with 10 family members and nine residents attending.
Lisa Kosmos, Two Harbors, and Joel Lewis, Hovland, both have their artwork on display at the hospital and care center. The exhibit will be shown until October 1, 2019.
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