February 23, 2017 at 2:06 a.m.
Hospital freezes pension plan
Decision is expected to save $5.5 million over a 10-year period
Hospital freezes pension plan
Copyright 2017, The Commercial Review
All Rights Reserved
With financial difficulties continuing to loom large over Jay County Hospital, its board took a step Wednesday to cut costs.
Jay County Hospital Board voted unanimously to freeze its employee pension plan effective immediately. In doing so, it also opened the door for affected employees to be eligible for a different retirement savings program.
Board members also continued their review and discussion of hospital finances and the facility’s ongoing strategic planning process.
The board voted to freeze the pension plan on recommendation from the quality, human resources and facilities committee.
The pension plan was put on a “soft freeze” in 2009, meaning no new employees could join. The vote Wednesday implemented a “hard freeze,” which means employees who were a part of the pension plan will no longer accrue benefits. Benefits that have already been accrued will not be affected.
Hospital CEO Dave Hyatt and vice president of human resources Jerry Bozell said after the meeting that the freeze is expected to save about $5.5 million over the course of 10 years.
“Not only are we trying to grow the business … one of the other items that we’re tasked with is to control expenses as well,” said Bozell.
While freezing the pension plan, the board opened the hospital’s 403B plan to employees who were hired prior to the 2009 soft freeze. (The plan was already available to those hired after 2009.)
The 403B plan works in a similar fashion to a 401k. Employees can make contributions to the 403B plan, with the hospital matching at 50 percent. The hospital also makes a base contribution.
“We wanted to make sure that we put a very good retirement package in there for those people,” said Hyatt of hospital employees hired before 2009.
Hyatt also updated the board on the hospital’s financial situation, which remains dire as both patient visits and income continue to fall well below projections.
Through the first four months offiscal year 2016, the hospital totaled 1,577 patient days. This year, that number is down more than 20 percent to 1,247. The result is that the hospital has had an operating loss of just over $3 million thus far in fiscal 2017.
“Obviously the disturbing trends continue … largely because of volume the last couple months,” said Hyatt.
In addition to the pension freeze, the hospital is taking several other steps in an effort to help the financial situation. Those include continuing to recruit family practice providers and limiting capital expenditures to critical equipment only. He said that changes thus far are projected to result in a savings of $1.5 million this year.
Hyatt also noted that the steering committee for strategic planning that is working with Quorum Health Resources on finding ways to stabilize the hospital’s financial situation had its first meeting last week. It is looking to grow services and reduce costs, but also must have a “plan B” in case those steps are not enough to fix the problems.
“We continue to be optimistic that through this planning process we will find a good solution that will remedy our financial condition and provide the best care to the citizens of Jay County,” said board member Bill Hinkle.
In other business, the board:
•Heard a reminder and discussed at length the “Connecting the Links in the Battle Against Substance Abuse” program scheduled for 6:30 p.m. today in the Jay County High School auditorium. Several board members talked about the importance of dealing with the local drug problem and encouraged as many as possible to attend the event. Hyatt, who will be one of the speakers, noted that Jay County in 2016 ranked third out of 92 counties for its rate of neonatal abstinence syndrome — problems that occur in newborns who were exposed to opioids before birth.
•Learned the hospital (doors A,B and C) and provider offices (1, 2 and 3) have been newly labeled in part to help direct patients and to make it easier for local law enforcement and emergency personnel to respond when needed.
•Was reminded by Hyatt that Meridian MD Convenience Care opened Wednesday. He said the clinic had a patient right away upon opening at 2 p.m. and saw five patients in the first five hours. “That’s providing a service that I think the community will find very, very valuable,” Hyatt said.
•Voted to ask that Jay County Commissioners reappoint Roger Locker to another term on the board.
•Learned that there is a verbal agreement in place to bring an additional general surgeon to the hospital in April. Details of that agreement are being finalized.
•Approved the appointments of Kiran Mandya Chikkalingaiah (nephrology) to the courtesy staff and Brenda DeArmond as an independent nurse practitioner.
•Heard from auxiliary president Bonnie Coffel that 75 volunteers worked a total of 1,201.5 hours last month. The group also raised $341 via its uniform sale.Copyright 2017, The Commercial Review
All Rights Reserved
With financial difficulties continuing to loom large over Jay County Hospital, its board took a step Wednesday to cut costs.
Jay County Hospital Board voted unanimously to freeze its employee pension plan effective immediately. In doing so, it also opened the door for affected employees to be eligible for a different retirement savings program.
Board members also continued their review and discussion of hospital finances and the facility’s ongoing strategic planning process.
The full board voted to freeze the pension plan on recommendation from the quality, human resources and facilities committee.
The pension plan was put on a soft freeze in 2009, meaning no new employees could join. The vote Wednesday implemented a “hard freeze,” which means employees who were a part of the pension plan will no longer accrue benefits. Benefits that have already been accrued will not be affected.
Hospital CEO Dave Hyatt and vice president of human resources Jerry Bozell said after the meeting that the freeze is expected to save about $5.5 million over the course of 10 years.
“Not only are we trying to grow the business … one of the other items that we’re tasked with is to control expenses as well,” said Bozell.
While freezing the pension plan, the board opened the hospital’s 403B plan to employees who were hired prior to the 2009 soft freeze. (The plan was already available to those hired after 2009.)
The 403B plan works in a similar fashion to a 401k. Employees can make contributions to the 403B plan, with the hospital matching at 50 percent. The hospital also makes a base contribution.
“We wanted to make sure that we put a very good retirement package in there for those people,” said Hyatt of hospital employees hired before 2009.
Hyatt also updated the board on the hospital’s financial situation, which remains dire as both patient visits and income continue to fall well below projections.
Through the first four months offiscal year 2016, the hospital totaled 1,577 patient days. This year, that number is down more than 20 percent to 1,247. The result is that the hospital has had an operating loss of just over $3 million thus far in fiscal 2017.
“Obviously the disturbing trends continue … largely because of volume the last couple months,” said Hyatt.
In addition to the pension freeze, the hospital is taking several other steps in an effort to help the financial situation. Those include continuing to recruit family practice providers and limiting capital expenditures to critical equipment only. He said that changes thus far are projected to result in a savings of $1.5 million this year.
Hyatt also noted that the steering committee for strategic planning that is working with Quorum Health Resources on finding a way to stabilize the hospital’s financial situation had its first meeting last week. It is looking at ways to grow services and reduce costs as part of that effort and is also looking at a “plan B” in case those steps are not enough to fix the problems.
“We continue to be optimistic that through this planning process we will find a good solution that will remedy our financial condition and provide the best care to the citizens of Jay County.,” said board member Bill Hinkle.
In other business, the board:
•Heard a reminder and discussed at length the “Connecting the Links in the Battle Against Substance Abuse” program scheduled for 6:30 p.m. Thursday in the Jay County High School auditorium. Several board members talked about the importance of dealing with the local drug problem and encouraged as many as possible to attend the event. Hyatt, who will be one of the speakers, noted that Jay County in 2016 ranked third out of 92 counties for its rate of neonatal abstinence syndrome — problems that occur in newborns who were exposed to opioids before birth.
•Learned the hospital (doors A,B and C) and provider offices (1, 2 and 3) have been newly labeled in part to help direct patients and to make it easier for local law enforcement and emergency personnel respond when needed.
•Was reminded by Hyatt that Meridian MD Convenience Care opened Wednesday. He said the clinic had a patient right away upon opening at 2 p.m. and saw five patients in the first five hours. “That’s providing a service that I think the community will find very, very valuable,” Hyatt said.
•Voted to ask that Jay County Commissioners reappoint Roger Locker to another term on the board.
•Learned that there is a verbal agreement in place to bring an additional general surgeon to the hospital in April. Details of that agreement are being finalized.
•Approved the appointments of Kiran Mandya Chikkalingaiah (nephrology) to the courtesy staff and Brenda DeArmond as an independent nurse practitioner.
•Heard from auxiliary president Bonnie Coffel that 75 volunteers worked a total of 1,201.5 hours last month. The group also raised $341 via its uniform sale.
All Rights Reserved
With financial difficulties continuing to loom large over Jay County Hospital, its board took a step Wednesday to cut costs.
Jay County Hospital Board voted unanimously to freeze its employee pension plan effective immediately. In doing so, it also opened the door for affected employees to be eligible for a different retirement savings program.
Board members also continued their review and discussion of hospital finances and the facility’s ongoing strategic planning process.
The board voted to freeze the pension plan on recommendation from the quality, human resources and facilities committee.
The pension plan was put on a “soft freeze” in 2009, meaning no new employees could join. The vote Wednesday implemented a “hard freeze,” which means employees who were a part of the pension plan will no longer accrue benefits. Benefits that have already been accrued will not be affected.
Hospital CEO Dave Hyatt and vice president of human resources Jerry Bozell said after the meeting that the freeze is expected to save about $5.5 million over the course of 10 years.
“Not only are we trying to grow the business … one of the other items that we’re tasked with is to control expenses as well,” said Bozell.
While freezing the pension plan, the board opened the hospital’s 403B plan to employees who were hired prior to the 2009 soft freeze. (The plan was already available to those hired after 2009.)
The 403B plan works in a similar fashion to a 401k. Employees can make contributions to the 403B plan, with the hospital matching at 50 percent. The hospital also makes a base contribution.
“We wanted to make sure that we put a very good retirement package in there for those people,” said Hyatt of hospital employees hired before 2009.
Hyatt also updated the board on the hospital’s financial situation, which remains dire as both patient visits and income continue to fall well below projections.
Through the first four months of
“Obviously the disturbing trends continue … largely because of volume the last couple months,” said Hyatt.
In addition to the pension freeze, the hospital is taking several other steps in an effort to help the financial situation. Those include continuing to recruit family practice providers and limiting capital expenditures to critical equipment only. He said that changes thus far are projected to result in a savings of $1.5 million this year.
Hyatt also noted that the steering committee for strategic planning that is working with Quorum Health Resources on finding ways to stabilize the hospital’s financial situation had its first meeting last week. It is looking to grow services and reduce costs, but also must have a “plan B” in case those steps are not enough to fix the problems.
“We continue to be optimistic that through this planning process we will find a good solution that will remedy our financial condition and provide the best care to the citizens of Jay County,” said board member Bill Hinkle.
In other business, the board:
•Heard a reminder and discussed at length the “Connecting the Links in the Battle Against Substance Abuse” program scheduled for 6:30 p.m. today in the Jay County High School auditorium. Several board members talked about the importance of dealing with the local drug problem and encouraged as many as possible to attend the event. Hyatt, who will be one of the speakers, noted that Jay County in 2016 ranked third out of 92 counties for its rate of neonatal abstinence syndrome — problems that occur in newborns who were exposed to opioids before birth.
•Learned the hospital (doors A,
•Was reminded by Hyatt that Meridian MD Convenience Care opened Wednesday. He said the clinic had a patient right away upon opening at 2 p.m. and saw five patients in the first five hours. “That’s providing a service that I think the community will find very, very valuable,” Hyatt said.
•Voted to ask that Jay County Commissioners reappoint Roger Locker to another term on the board.
•Learned that there is a verbal agreement in place to bring an additional general surgeon to the hospital in April. Details of that agreement are being finalized.
•Approved the appointments of Kiran Mandya Chikkalingaiah (nephrology) to the courtesy staff and Brenda DeArmond as an independent nurse practitioner.
•Heard from auxiliary president Bonnie Coffel that 75 volunteers worked a total of 1,201.5 hours last month. The group also raised $341 via its uniform sale.Copyright 2017, The Commercial Review
All Rights Reserved
With financial difficulties continuing to loom large over Jay County Hospital, its board took a step Wednesday to cut costs.
Jay County Hospital Board voted unanimously to freeze its employee pension plan effective immediately. In doing so, it also opened the door for affected employees to be eligible for a different retirement savings program.
Board members also continued their review and discussion of hospital finances and the facility’s ongoing strategic planning process.
The full board voted to freeze the pension plan on recommendation from the quality, human resources and facilities committee.
The pension plan was put on a soft freeze in 2009, meaning no new employees could join. The vote Wednesday implemented a “hard freeze,” which means employees who were a part of the pension plan will no longer accrue benefits. Benefits that have already been accrued will not be affected.
Hospital CEO Dave Hyatt and vice president of human resources Jerry Bozell said after the meeting that the freeze is expected to save about $5.5 million over the course of 10 years.
“Not only are we trying to grow the business … one of the other items that we’re tasked with is to control expenses as well,” said Bozell.
While freezing the pension plan, the board opened the hospital’s 403B plan to employees who were hired prior to the 2009 soft freeze. (The plan was already available to those hired after 2009.)
The 403B plan works in a similar fashion to a 401k. Employees can make contributions to the 403B plan, with the hospital matching at 50 percent. The hospital also makes a base contribution.
“We wanted to make sure that we put a very good retirement package in there for those people,” said Hyatt of hospital employees hired before 2009.
Hyatt also updated the board on the hospital’s financial situation, which remains dire as both patient visits and income continue to fall well below projections.
Through the first four months of
“Obviously the disturbing trends continue … largely because of volume the last couple months,” said Hyatt.
In addition to the pension freeze, the hospital is taking several other steps in an effort to help the financial situation. Those include continuing to recruit family practice providers and limiting capital expenditures to critical equipment only. He said that changes thus far are projected to result in a savings of $1.5 million this year.
Hyatt also noted that the steering committee for strategic planning that is working with Quorum Health Resources on finding a way to stabilize the hospital’s financial situation had its first meeting last week. It is looking at ways to grow services and reduce costs as part of that effort and is also looking at a “plan B” in case those steps are not enough to fix the problems.
“We continue to be optimistic that through this planning process we will find a good solution that will remedy our financial condition and provide the best care to the citizens of Jay County.,” said board member Bill Hinkle.
In other business, the board:
•Heard a reminder and discussed at length the “Connecting the Links in the Battle Against Substance Abuse” program scheduled for 6:30 p.m. Thursday in the Jay County High School auditorium. Several board members talked about the importance of dealing with the local drug problem and encouraged as many as possible to attend the event. Hyatt, who will be one of the speakers, noted that Jay County in 2016 ranked third out of 92 counties for its rate of neonatal abstinence syndrome — problems that occur in newborns who were exposed to opioids before birth.
•Learned the hospital (doors A,
•Was reminded by Hyatt that Meridian MD Convenience Care opened Wednesday. He said the clinic had a patient right away upon opening at 2 p.m. and saw five patients in the first five hours. “That’s providing a service that I think the community will find very, very valuable,” Hyatt said.
•Voted to ask that Jay County Commissioners reappoint Roger Locker to another term on the board.
•Learned that there is a verbal agreement in place to bring an additional general surgeon to the hospital in April. Details of that agreement are being finalized.
•Approved the appointments of Kiran Mandya Chikkalingaiah (nephrology) to the courtesy staff and Brenda DeArmond as an independent nurse practitioner.
•Heard from auxiliary president Bonnie Coffel that 75 volunteers worked a total of 1,201.5 hours last month. The group also raised $341 via its uniform sale.
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