Eureka Springs City Council and ES Hospital commissioners met on April 1 in a joint workshop to discuss hospital management, lack of local confidence in the hospital, staff turnover, and budget.
Public perception was the focus of conversation between aldermen and commissioners addressing alleged abuse reported by previous hospital employees, as well as the hospital having been on divert twice recently.
Commission chair Sandy Martin told council that “we’ve got community damage to repair” and that the hospital intends to do community outreach so locals can meet new staff and see the positives. Martin said the commission had done investigation, made corrections, and that she thought “our environment is really good.”
Commissioners, at several points, said that continued “bad press” had damaged the hospital’s reputation and there was a need to, as commissioner Brian Beyler put it, “look at the positive things and see what’s going on.”
Commissioner Sharon Deramus said the commission is looking at résumés to replace the interim CEO, and commissioner Kate Dryer noted that two of the candidates the commission was considering had a “good history” with turnarounds.
City alderman David Avanzino asked if previous hospital employees who quit because of workplace concerns could come back. Martin replied if the hospital has an opening they can apply. Avanzino asked if they will be able to apply and given a “fair and balanced” interview, saying he was concerned about hostility from current administration. Martin answered that they could apply and there “is no retaliation.”
That concern came up multiple times with aldermen Susane Gruning and Rachael Moyer and other aldermen directly stating that they felt the hospital could not move forward with the current administration. Hiring a management company as a way of solving administrative issues was floated, and while commissioners did say that all options will be explored, Martin said they are currently going “down the path of a CEO.” Martin also mentioned that the interim CEO would move back to her previous HR position once a new CEO is hired.
Aldermen told commissioners that they had heard from hospital employees current and prior, and were inclined to conclude that administration was the common denominator for problems. Avanzino and Gruning mentioned that some who contacted them were afraid to come forward. Avanzino also said that it was up to the hospital to share what positives have happened and that “if you think the press is going to do it, they’re not until you start proving you can do it consistently, because what the press has seen consistently so far is things you cannot do, such as being on divert two times.”
Moyer asked about high turnover at the hospital mentioning that in 2023, 48 people left – five were terminated, four moved, two retired, and 37 fell under an “other” category. Since the CEO change in Nov. 2024 there have been 24 total turnovers with one terminated, one job abandonment, one move, one retirement, and 20 “other.” She noted that it was a large turnover compared to national average in healthcare even taking into account that healthcare is naturally a high turnover profession.
Martin said that it was a high turnover, but implored aldermen to “consider what we were going through and the people that were leaving at their choice.” Moyer asked if Martin had insight into why the turnover had been high and if administration was behind the reason “behind this huge turnover.”
Martin downplayed turnover rates saying that national average show that a hospital’s staff will entirely turnover in five years and that the commission anticipated a high turnover rate because of turmoil and dissatisfaction with the job. She said the difference between contract and permanent employees does not cause “that much financial pain because of the cost of having benefits paid,” as well as not requiring overtime pay.
She said the goal is to hire new employees and that there were several contract employees seeking to become permanent, as well as that employees for the lab had been hired. Martin also argued that under previous administration, turnover had been higher. She said that “we do not feel it [turnover] is higher or due to this particular administration” but that the commission “acknowledges” that it was due to changes and disruption at the hospital, referencing its transition in 2024 to a Regional Emergency Hospital (REH) designation and the consolidation and loss of roles to fit in that designation.
Commissioner Vivian Smith suggested they start to conduct exit interviews to keep track of reasons for employees leaving.
Moyer asked about a reduction in overall revenue from 2023 to 2024 and commissioners said that swing-bed and inpatient revenue had to be removed to fall under the REH classification. Martin said that the hospital’s total revenue was on track to match the budget this year and clarified an expense item at $364,000 of which $280,000 was dedicated to new networking system and equipment.
Moyer also questioned the $606,000 contract labor year-to-date and Martin said they were a “little higher than we anticipated.” Alderman Terry McClung replied, “you’re a lot higher.”
Moyer said she had come to the conclusion that the commission’s trust in current administration has contributed to staff turnover. She said that’s what was being told to her by “folks who worked in the hospital” and have connections to it through contract labor. She argued that nothing presented had changed that concern.
She also asked the commission to revisit the budget immediately, saying they were “dangerously off-track” of the operating budget by several million dollars for 2025, and that would burn through $6 million in reserves quickly. She urged the commission to find a viable candidate for full-service management.
Mayor Butch Berry asked Martin about discussions with North Ark Medical Center about administrative services, and Martin clarified that they had discussed specific administrative services, such as overseeing the lab. This would require a short-term contract for North Ark Medical to handle specific administrative services.
Hospital commissioners encouraged council to meet with current employees and visit the hospital to see how it is progressing. They said they’d also schedule a workshop on whether to take on a CEO or a management company to run the hospital.
A long ways to go, looks to me.