No Action Taken After Hour-Long Exec Session
The McDonough District Hospital Board took no action Monday evening after an hour-long executive session; however, in an email received during the evening hours of Aug. 25 from the hospital’s Vice President of Business Strategy, Patrick Osterman, the Community News Brief was told that the Board had no objections to the separation agreement for former CEO Bill Murdock. The Board did not vote on the agreement in an open session.
According to the meeting notice, the Board met in closed session to discuss matters relating to the appointment, employment, compensation, discipline, performance, or dismissal of specific employees, and setting a price for the sale or lease of property owned by a public body.
According to Osterman, the separation agreement “should be completed after today” (Aug. 25). The Community News Brief received some of the terms of the agreement as requested at approximately 5:45 p.m. Aug. 26; however, newspaper staff were directed to file a Freedom of Information Act request to obtain the complete separation agreement. See separate story on the agreement.
In other business discussed Monday during open session, Interim CEO Wanda Foster is leading the hospital while the board’s search committee moves forward with recruitment. The committee is reviewing commitment documents with recruiters and expects to receive approximately 12 candidates for initial interviews. The Board unanimously approved Foster’s appointment to both the PHO Board and the MDH Insurance Company Board.
Revenue Cycle Overhaul Underway
Laboratory Director Brittany Doll reported that the revenue cycle report has been submitted to Foster for review. The report is open-ended to accommodate potential partners and explore all options. Doll was assigned to lead a team to map out the entire revenue cycle process—a complex chain involving charge capture, billing, claims submission, and insurance follow-up.
RSM, a consulting firm hired by MDH, found that poor revenue cycle management is costing the hospital roughly $20 million a year—money that should be collected from insurance companies and patients but instead is being lost to manual processes, weak controls, and leadership gaps. RSM consultants presented the assessment to the board in June, recommending outsourcing most billing and collections functions.
The hospital currently collects only 36% of gross revenue when it should be collecting 43%, according to contract modeling done by RSM. That 43% figure is conservative; the actual potential is likely higher.
Other Business
Dave Garner of the Employee Relations Committee and Ryan Riggins of the Finance Committee gave additional reports. Riggins said July was a profitable month, which added 12 days of cash on hand.
Dr. Sands, a family practitioner, has joined the MDH Medical staff and will begin Sept. 8.
The Board again recognized the hospital’s OB/GYN Department for receiving a $4 million grant through the Health Resources and Services Administration’s Rural Maternity and Obstetrics Management Strategies program. The Community News Brief reported on the grant Aug. 11.
