Monday night was the first Eureka Springs Hospital Commission meeting held at the newly renovated administration office building at 25 Norris St. The interior smelled of fresh paint and provided a modern setting for discussion of the city’s launch of hospital operations beginning Feb. 1.
Darrell Parke of Alliance Management Group reported on progress made in preparing for the soon approaching changeover from terminated Allegiance to the Hospital Commission. Parke reported that all the employees have been secured and are signed up for payroll and city benefits to begin Feb. 1.
In describing the benefits change from Allegiance Parke said, “I think it’s going to be a vast improvement.” Parke said employees will enjoy more holidays, and their seniority remains intact for the city’s matching retirement plan.
Vacation and sick time accrued during the time served with Allegiance is still a liability, Parke said, as he believes the vacation time will be paid to employees but is uncertain if Allegiance will honor payment of any sick leave earned. Sick leave is the least of the city’s concerns with Allegiance as the settlement agreement is “The great unknown,” as Parke described. Chair Dr. John House is hopeful for a settlement agreement to be made soon but could not comment as the city is in negotiations with Allegiance over the final parting terms of the agreement.
The cash flow projection report in its first stages of development, and Parke reported that the hospital will not only be self-sufficient, but “It will make money,” and provide services far beyond a critical care facility.
By December, Parke estimates that the hospital can be upgraded from $8 million gross profit to $20 million or more by providing in-house ultrasounds, blood draw services to local nursing homes and retirement communities, on-staff physician Dr. Dan Bell, anesthesiology services, surgical services in an updated operation room, stabilized E.R. services, an updated website, improved EMS relationships, a wound-care program, a rural health clinic, physical therapy, and additional specialist services.
Parke and his partners in Alliance showed their excitement for what is soon to come for the hospital and the Eureka Springs community.
Parke also helped with operational decisions such as recommending the retention of Stone Financial as the CFO on a month-to-month contractual agreement. He said the organization is not yet ready for a CEO but a CFO is necessary.
Commissioners voted to retain Stone Financial’s services at a rate of $6,500 per month. Also, the commission made its first vote to begin payroll services to the employees and approved $400,000 for the first transfer of funds to operational accounts. Dual controls were set in place for financial security.
Secretary Barbara Dicks said that while the original cost estimate for renovations at 25 Norris was $40,000 there have been additional costs that will run the total cost to about $55,000. Commissioners approved an additional $15,000 for the final renovations.
Dicks shared the kind of devotion the employees of the hospital possess, saying Allegiance had cut the staff quite short and employees would come in on their days off just to do the hospital laundry. Also, employees experienced a lapse in employee insurance benefit coverage due to Allegiance administration failing to pay the premiums.
She said staff were bringing their own toilet paper and copier paper due to a lack of administrative and operational functions. After Dicks described the dire situation the hospital employees endured, commissioner Dr. Chris Baranyk said, “It’s shameful,” referring to how poorly Allegiance operated.
The next regularly scheduled meeting is Monday, Feb. 17 at 6 p.m. at 25 Norris, across from the hospital.