Alva Review-Courier -

The finance committee of the Alva Hospital Authority met with a representative of BKD CPAs and Advisers for a three-hour meeting Tuesday afternoon to hear a detailed report of audit findings for the year. Later, at the meeting of the entire board, the BKD representative Carley Williams, CPA, gave a condensed report to the board.

The good news about the audit is there are no “reportable matters” regarding the accuracy of the financial operations at the hospital. BKD's chief concern is staff has been reduced sufficiently that there's insufficient segregation of duties of people who have the authority to authorize expenditures and then have the authority to pay for those expenditures.

The auditor wrote that “continued operating losses” and “negative working capital” raise doubt about the authority's ability to continue as a going concern for a reasonable period of time. The three-hour meeting with the finance committee explored as many avenues as possible to further reduce costs and to enhance revenue.

Williams said “Most rural hospitals are in this position and everyone is struggling to find answers, but solving the financial problems is hard.”

September SMC Financials

Share Medical Center's Kevin O'Brien, CFO, reported a net operating loss for September of $287,700. After sales tax revenue was applied, the loss was reduced to $208,615.

The operating cash balance on hand at the end of September was $74,399, which represented 2.1 days of operating expenses, excluding depreciation.

Accounts payable for September was $763,860. This represents 51.2 days of operating expenses excluding costs of salaries, benefits and depreciation.

It was a negative month for each of the three entities of the hospital authority. The hospital revenue was down $105,869, the nursing home was down $12,937 and The Homestead was down $17,908.

Total patient days for September was 91 compared to 134 in August. Total clinic office visits for September were 1,466 compared to 1,431 in August. The nursing home daily census for September was 53.6 compared to 54.2 in August.

At the end of the meeting, Kevin O'Brien announced that the hospital is changing insurance provider for employees. The cost per month will go down and the deductible falls from $5,000 to $1,500.

New employees hired during the month of September were: Desiree Fritz, lab assistant; Pamela Hess, physician office receptionist; Chad Schroder, PA-C; Halah Canaan, CNA – convalescent home; Felicia Green, LPN – convalescent home; Sharrie Huntress, LPN – hospital; Viviana Andazola, dietary aide; Carla Hess, Homestead residential coordinator; and Shelby Love, dietary aide.

The Medical Staff Executive Committee asked the board to approve the following credentials: Ricky Reaves, MD, pathology; Cullen McCarthy, MD, ER; Sherrita Wilson, MD, pathology; and Barry Rockler, MD, pathology.

CEO Kandice Allen reminded the board members that flu shots are available, and she let the board know that SMC employees are now required to obtain a flu shot.

The CEO expressed frustration with AT&T over irregular phone service over the last three weeks, including a half-day at the downtown clinic. She said, “This phone service problem has been a very trying time for staff and patients. At this time, we believe it is a defective splice in the fiber cable and a crew has been dispatched to fix it.”