As part of their efforts to find a new administrator, members of the Cook County Hospital District Board are looking into a new course of action for the facility’s future: entering into a management contract with St. Luke’s Hospital.
Hospital board member Tom Spence told the board at their November 17 meeting that he came upon that possibility while researching ways to fill the vacancy that will be created when Diane Pearson retires in a few months. Spence, who was appointed to head the search committee, said he was contacted by a representative from the Duluth hospital who said St. Luke’s was willing to offer some help, in varying degrees of involvement.
Spence said the more he thought about it, the more it makes sense to explore the option. He said St. Luke’s has a presence all along the North Shore, from Two Harbors to Thunder Bay, and “we would be the last piece.”
Spence pointed out that it’s very difficult for a hospital of Cook County’s size and remoteness to thrive and survive. But with the guidance of such a larger, wellknown facility, he said, “many doors to growth and efficiencies will be opened.” St. Luke’s could offer support in everything from billing to purchasing to IT services, he said.
Spence went on to note that St. Luke’s has earned a good reputation with all of its partners. They try to adapt to the local ways, he said, and retain the facility’s local culture and identity without changing the
” names of the local clinics and hospitals. For instance, he said, the clinic in Silver Bay and hospital in Two Harbors both have ties to the Duluth facility, but are still known by their original names.
Furthermore, continued Spence, an association with St. Luke’s would not result in sweeping changes— the hospital would not be sold; staff members would remain employees of Cook County North Shore Hospital; the hospital and its assets would not be leased; management of the Care Center would not be changed; and importantly, the local board would continue to oversee the budget and make all of the decisions. And, added Spence, the local board would continue with its search and hire a new administrator; who would pay the new administrator would depend on the terms of the agreement with St. Luke’s. “The two don’t have to go together,” he said.
“I think this is a great opportunity to develop a relationship with one of the biggest providers in northeast Minnesota,” Spence said. “We should give strong consideration to having Diane begin talks with them about a threeto five-year contract.”
Board Chair Howard Abrahamson agreed, recalling that the board has looked at such an arrangement before. In fact, the hospital did have a management contract with a different firm in the mid- ’80s, said Pearson, but it didn’t work out very well.
Board member Kay Olson said it is getting more and more essential for health facilities to work together to offer a “basket of care” to their clients. By collaborating with other caregivers, she said, all will get paid for the services they render — and that’s often not the case now.
“It’s becoming increasingly difficult for smaller facilities to operate as independent entities,” Abrahamson said. “Here is a continuity of care that has some logic to it…and I can’t think of any reason not to look into it.”
Theboard then voted unanimously to authorize Pearson to enter into negotiations with St. Luke’s for a management contract. Abrahamson said Pearson is the “most knowledgeable person we have,” so it makes sense for her to pursue the matter.
Pearson announced in September that she plans to retire soon, after more than 20 years at the Grand Marais hospital. Spence said a good working agreement with St. Luke’s will have another benefit as well. “We’ll be lucky to keep a new administrator for four or five years, and we won’t have another person who stays for 20 years, as Diane has,” he said. “A management contract would give us some continuity in the future.”
To date, 16 applications have been received for the administrator’s position.
In other business:
&&The board approved the hospital’s $12.5 million
2010 budget that projects a $429,000 loss for the year. The hospital will operate at a $300,000 loss this year. Abrahamson said the board has spent a lot of time reviewing the numbers and talking with
department heads. “We’ve done the best we can,” he
said.
&&The board authorized the purchase of a new blood
culture machine, at a cost not to exceed $17,000. The machine is needed to perform lab tests that are being done with more frequency, and will replace
the existing manual system which is outdated. Two
models are under consideration.
&&A one-year contract was signed with Dr. Brad Davis
of the Duluth Clinic, adding the pathologist to the hospital’s medical staff to supervise the lab. He fills
the vacancy created by the retirement of Dr. Blomberg.
&&The board approved contracts with Prudential as the
hospital’s long-term disability carrier at a guaranteed rate of $13,300 for three years, and Minnesota
Life at an employer rate of $236 per month. Both are
savings over the current plans.
&&Maintenance Director Rory Smith was authorized to
proceed with an engineering study that will examine the building’s heating system and determine if any savings would be realized with a switch from fuel oil to propane, or if a dual fuel system would be feasible. Smith said one of the two boilers dates back to 1969 and “has seen better days,” and will cost substantial
money to replace when the time comes. The
study is expected to cost about $6,000.
&&Bridget Sobieck, director of nursing, said there has
been a recent decrease in reported cases of the H1N1 flu, but she expects an upturn in the days and weeks following Thanksgiving. Unfortunately, she said, there are a lot of local parents who are not having their children vaccinated, expanding the at-risk group. There has also been a big increase in pneumonia, she said, especially among older folks;
last week alone there were four patients treated for
pneumonia.
&&Finance Director Yvonne Gennrich reported a loss of
$245,000 for the month of October, the worst of the year. The year-to-date loss stands at $313,700. There was also a discussion about bad debt, and what the hospital can do to offset it.
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