By Roy McQueen

SDN Publisher

Formal approval of a contract for a chief executive officer, patient satisfaction and ways to streamline the “cumbersome” accounts payable process dominated this morning’s Cogdell Hospital board meeting.

The board, as expected, offered a three-year contract to Carol Hanes of Linden to become Cogdell chief administrator, effective May 10.

The contract, unanimously ratified, calls for an annual salary of $100,000 and a $400 per month automobile allowance.

The new CEO also will receive a longevity incentive, in the event that the contract is terminated by the hospital, in the amount of $1,000 per month for each month employed, for a maximum of $25,000, or a total of $25,000. The administrator also will be eligible for any cost-of-living adjustments approved for Scurry County employees.

The agreement also calls for up to $5,000 in moving expenses. In addition the hospital is responsible for finding and paying for temporary housing, including utilities, for the new CEO for the first three months of employment.

Cogdell has been operating with an interim administrator since a 15-year management agreement with Covenant Healthcare Systems was terminated last December.

Hanes has been serving as CEO of the Linden MemorialHospital in East Texas.

A public reception for Mrs. Hanes is set from 6 to 8 p.m. May 10 at Martha Ann Woman’s Club.

Last month Cogdell’s board discussed at length ways to increase participation in patient satisfaction surveys. Chuck Hurst, director of human resources, said a staff committee had been formed to develop a survey that would gauge “expectations against experience.”

The committee suggested the implementation of a hot line for patients to call with a complaint that would get a same-day response.

Board members, however, said they would like to include personal contact and suggested a patient relations coordinator position be re-instated. The post was eliminated because of budget cuts.

Board member Mark Cullifer said he sees the value of an independent person to deal with patient concerns.

Richard Murphy, interim chief financial officer, recommended that the process to approve and pay bills for the hospital be streamlined to avoid late charges.

Murphy noted that one vendor alone has added more than $8,000 in late charges. Murphy called the current systems “cumbersome” and said he would make a similar presentation Monday to the Scurry County commissioners court.

Murphy noted that responsible personnel are in place and that no payments have ever been rejected. “This is an opportunity to raise the level of trust between the hospital and the commissioners court.”

In other business, the board renewed a contract with the Texas Department of Human Services and heard a risk management report from Jo Beth Hardegree who said the hospital last claim paid was in 1995.

Hardegree said that compared with similar-size hospital, Cogdell is below state average in the number of claims filed against it.

An average of 10 cataract surgeries are performed at Cogdell each month.

Laquita Culwell said that despite the low revenue and profit to the hospital, she feels that it is an important service provided to local citizens.

Also approved was a worker’s compensation policy for the emergency room in attempt to avoid disputes over whether an injury is work-related. The new policy calls for a supervisor to accompany or send a letter with the patient, or a quick verification with the employee.

The board also discussed disposal of surplus hospital equipment, but no action was taken. Likely the equipment will be declared surplus at next month’s meeting and turned over to the county for disposal.

For the month of March, total revenues were $2.6 million, resulting in an operating loss of $221,236. However, Murphy noted that depreciation adjustments and another $47,000 in upper limits payments to Medicare that will eventually be reimbursed, actually reduces the loss to $118,000. For the three months of 2004, the positive cash flow of the hospital is $599,172, Murphy noted.

Chairman Dink Foree presided and board members present were Charles Church, Bo Robinson, Terry Williams, Cullifer and Wade Warren.