Trinity County Grand Jury
• 2009-2010
Mountain Communities Healthcare District Hospital Investigation
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 10 findings
F1
The current CEO/CFO was hired at a competitive compensation. 6
Related Recommendations (1)
R1
None. Response: No response
F2
The CEO and CFO positions were combined at a significant savings to the Hospital.
Related Recommendations (1)
R2
None. Response: No response JUDY PFLUEGER JUDY MORRIS ROGER JAEGEL HOWARD FREEMAN WENDY OTTO DISTRICT I DISTRICT 2 DISTRICT 3 DISTRICT 4 DISTRICT 5
F3
Revenues continue to rise based on the actions of the District management by increasing fees for services and the acquisition of the Hayfork Clinic.
Related Recommendations (1)
R3
The District should submit to the Board of Supervisors and the Grand Jury, a plan annually on how and when revenue will increase and/or operating expense will decrease to achieve sustained profitability.
F4
2009 operating expenses rose faster than revenue.
Related Recommendations (1)
R4
The District should continue measurements of revenue, operating costs, accounts receivable, accounts payable, cash flow, reserves, line of credit and profit, as well as actions taken to remedy inadequacies. This report should be submitted to the Trinity County Board of Supervisors and the Trinity County Grand Jury on a quarterly and annual basis.
F5
Accounts Receivable (greater than 180 days) rose dramatically between 2008 and 2009 due in part to late payments from Medicare, Medi-Cal, Blue Cross, CMSP, commercial health care insurance companies and uninsured patients.
Related Recommendations (1)
R5
The District should continue measurements of performance by the Hospital for collection and billing cycles (aging report). The District should submit the report to the Trinity 7 County Board of Supervisors and the Trinity County Grand Jury on a quarterly and annual basis.
F6
A consulting firm has been contracted to insure accuracy, completeness and timeliness of billing submittals to Medicare, Medi-Cal, uninsured patients and commercial health care insurance carriers in order to improve Accounts Receivable.
Related Recommendations (1)
R6
Establish continuing measurements of performance by the consultant for billing and collection cycles (aging report). Report on a quarterly and annual basis to the Trinity County Board of Supervisors and the Trinity County Grand Jury.
F7
Bad debt has been reduced and is now managed with appropriate write-offs in a timely manner.
Related Recommendations (3)
R7
TCHHS should continue its efforts to obtain local foster homes. Response: There will always be a need for quality in-county foster placements for the children in our community. CPS is actively working with two foster family agencies and State Adoptions to increase awareness of the need for foster homes in this county. CPS also met with the principals of each school in the county to provide information about how this issue affects them and have been asked to provide more localized informational meetings regarding the need for foster homes at their schools sites. It is the hope of CPS that some new placements will come from these meetings. CPS also continues to advertise the need for foster homes in our county through advertising at the local cinema. CPS has acquired more creative, thought provoking designs for the 2010-2011 fiscal year that will created in the coming months.
R7a
The District should establish a monthly assessment of accounts receivable for bad debt and write off monthly.
R7b
Bad debt should be turned over to a contracted collection agency for possible recovery.
F8
Profitability is still not achievable without the parcel tax that expires in 2011. Due to the large delinquent accounts receivable, and lacking a financial strategic plan, it is not possible to forecast beyond the current year if the District will be able to operate profitably without the parcel tax.
Related Recommendations (1)
R8
The performance of the Hospital should be reviewed annually with the Trinity County Board of Supervisors and the Trinity County Grand Jury as long as the parcel tax is in effect.
F9
Strategic planning activities occurred in 2009. No financial plan, with goals, has yet been set for 3, 5 and 10 years out. 8
Related Recommendations (1)
R9
Strategic planning by the District needs to proceed on a regular basis until long-term strategic planning is completed. Without a plan it is not possible to project when, or if, profitability will occur, or if further expansion and improvements to the Hospital can be made.
F10
A permanent line of credit has not been established although an emergency line of credit has been put in place with the TPUD.
Related Recommendations (1)
R10
Due to the wide variation in month-to-month cash flow and operating expense, a permanent continuing line of credit is essential to day-to-day operations of the Hospital. Every effort should be made to put this in place at the earliest possible date.
No Responses Found 1
Government entities assigned to respond to this report. No response documents have been linked in our database.
Trinity County Board of Supervisors
Elected County Office