An ordinance mandating hospital reporting was discussed and eventually passed at Monday’s city council meeting. Proposed Ordinance 2370 adopts what’s in state law, establishing that the mayor or city council can request reports from Eureka Springs Hospital between the limited quarterly reports already being given.
Alderman Steve Holifield brought the ordinance issue to light after seeing that all other commissions with budget oversight are required to do such, except the hospital. The ordinance included a declaration of emergency, reading: “An emergency is hereby declared to exist and this act being necessary for the preservation and protection of the public peace, health, safety, and welfare of the city and its citizens.”
Alderman Rachael Moyer acknowledged the exhaustive nature of an ongoing hospital debate that led to a presentation of data findings. She said she was not consulted for scheduling of the recent hospital workshop, thus was unable to attend, and then presented facts and data analysis she claimed were contradictory to what the hospital commission had reported in its latest workshop.
Moyer explained that peak patient visitation is directly correlated with peak tourist season, showing that ESH is more than simply a rural hospital, it also serves many visitors. The patient revenue that the hospital commission “praises” is reflective of tourism, she said, “not community recommitment. I think that’s a misstatement.”
Moyer also reported that patient visitation numbers were lower last year than in all five years of collected data—pointing to an overall lack of confidence. She then questioned labor costs, contract vs. salary, saying her calculations indicated “we are spending the same amount of money to run an ER that we did in 2023 when we ran the full critical access hospital.”
Moyer said she believed the differences between the two were being “dangerously misrepresented.”
“The administration and the chair stated that it was ‘simply easier to staff with contract labor because you didn’t have to deal with call-offs and overtime.’ This makes me very sad.
“Rural hospitals play a vital role in the local economy. They offer highly skilled jobs, wages, and salaries that contribute to the economy and support local families. And they attract economic investment in an area. All of these very good reasons as to why we would go with salaried employment versus contract labor.”
Lastly, Moyer noted that the commission “seems to find security in reporting a bank balance of five million dollars.” However, according to her research, “since September of ‘24 there’s been a decrease in reported bank balances in the amount of $1.79 million. And the hospital only reports losses of $409,000—leaving $1.382 million unaccounted for.
“And so, the question remains, how is the money spent?”
Moyer concluded, “I now believe the host chair and vice chair are negligent in their leadership. They continue to misrepresent circumstances and data and I’m in possession of evidence to support that statement. For reasons beyond my understanding, they failed to comply in good faith with requests made of them by this council.
“But worse than that they continue to boldly and publicly state otherwise – we’ve provided with you with that… that is not true. Continuing to support leadership that refuses to act with transparency and fails to provide the necessary oversight is irresponsible. It would be one thing if there were no other options, but there have been other options that have not even been given true consideration.
“For example, Dr. House’s proposal – that model would bring less risk and could improve community relations. And yet it has not yet been seriously considered. As public servants, we have an obligation to our community. And Mayor, you insist that the council is unable to act. I’m actually inclined to motion for the discussion of the removal of the chair and the vice chair. But I am putting it back on you. If I were you, I would draw allocations from professional services to have a review and reconciliation of the commission, hospital budget, and the hospital’s finances, and find out what in the world is going on.”
Alderman Terry McClung asked if Moyer would go ahead and put requests for reports into motion form. A motion was passed to have a balance sheet, profit and loss statement, and cash flow statement provided to council on a monthly basis as soon as it becomes available.
Thank goodness for Rachael.