HCHC board of trustees receive update on estimated COVID-19 revenue losses

MT. PLEASANT - The Henry County Health Center is continuing to navigate COVID-19.

At the center's board of trustee's meeting on Tuesday afternoon, CEO Robb Gardner said the situation continues to be 'fluid” but the hospital has 'resumed a majority of all services.” Currently the center has ended temperature checks at its entrances, but is asking everyone within the facility to be wearing a mask.

Gardner also highlighted a financial impact tool and report created by the Iowa Hospital Association (IHA) that included projections on losses hospitals across the state would be facing in light of the coronavirus pandemic.

The impact report found the average revenue loss through April 21 was 46% for urban hospitals, 43% in rural referrals and 55% for critical access hospitals. Gardner noted HCHC, a critical access hospital was right at 54.5% to 55%, in line with other critical access hospitals.

'Our cumulative estimated revenue loss through June 30 is almost $3.7 million. June 30 through September 30 is almost $4.2 million loss and December 31 is $3.6,” Gardner explained.

Total estimated impact, following calculations of what the hospital may be able to recapture in the future, is $3.6 million, Gardner added. The CEO also explained the financial impact tool will be useful if a second wave of the coronavirus should hit.

During the meeting, the board of trustees also received an update on the transfer of EMS to the county. Chief Operating Officer Michelle Rosell explained that following the death of state legislation that would have allowed county supervisors to impose a levy without going to a vote, Henry County will have to move forward with a special election in September.

Rosell informed the board that the county's Board of Supervisors is continuing to review the utilization and asset transfer agreements.

'I think we're close on the number - what the levy amount should be in order to cover cost of the program. However their big concern is how to cover that first quarter, if you will, before the levy comes in and how they will cash flow those expenses,” Rosell said. The COO added the hospital's timeline for the transition still includes a July 2021 or earlier time frame.

Additionally, HCHC is continuing to advocate for an EMS advisory board.

'Part of that is because of the relationship that emergency medical services has with the hospital. They work hand-in-hand with one another so from our perspective, having HCHC representation on an ambulance board at the county level is very important. Plus the fact that several hundreds of thousands of dollars of assets are transferring, it would be nice to be at the table for the initial phase of that to make sure those assets are managed effectively,” Rosell said.

Rosell added the county Board of Supervisors had received a lot of public feedback on the importance of maintaining a good service.

'We're not just talking about EMS services. We're talking about the health of the community, we're talking about economic development. If we have a strong hospital and we have a strong emergency medical service, we can promote our community at a better level, bring in more companies,” she added.

The board of trustees also approved for HCHC to move forward with a partnership to bring Senior Life Solutions to the hospital. The service, which would provide mental health services to senior citizens, would include group therapy sessions. Gardner said the hospital would hope to get the service up and available by the end of the year and would potentially be housed in the former Labor and Delivery Ward. The partnership would also include a 2 year agreement with the program.