CCHHS Board funds renovations, lab equipment and CountyCare pharmacy benefits at December meeting.

CCHHS Board of Directors meeting, 12/18/15

Observer: Linda Christianson

Contracts approved:

• $21 million “lease” (line of credit) approved (with 3 voting “present” and 1 disapproving) to provide funds for renovation costs providing leeway for needed expenditures, defined as operational rather than capital and thus falling to CCHHS rather than County board for approval, identified by Chair Hill Hammock as “an unusual transaction.”
• Contract extensions for ventilator services to nursing home patients not on Medicaid.
• $12.5 million contract to provide laboratory automation equipment;
• CountyCare contracts: United Healthcare contract for $10 million to manage pharmacy benefits; First Transit contract for $5.3 million for transportation management, and DentaQuest contract for $4.1 million to manage dental and vision benefits.

Discussed: 
Penalties for readmission of patients within 30 days of discharge.  Even if the patient has a different diagnosis the second time, the penalty still applies.

Rates of readmission higher in inner cities, and higher for Medicaid patients than for Medicare patients.

Human Resources Director Gladys Lopez reported filling 1,267 vacancies in 2015, with 808 remaining vacancies.  Average hiring time has been reduced from 181 days to 121 days.

Items to Watch for:
A public speaker representing the nurses’ union said 98 nurses are scheduled to be displaced or laid off.

Deputy CEO Doug Elwell reported that the Government Accounting Standards Board will probably require CCHHS to recognize its pension funding, currently $60 million, now reflected in the County budget but not in the CCHHS budget.  If/when this change occurs CCHHS pension liability will total $280 million including unfunded pension interest for prior years. Most pension costs are associated with staff in “Tier One”, with defined benefit, rather than “Tier Two”, with defined contribution. Chairman Hammock responded, “These are expenses any hospital would have to deal with. Historically the County has borne the burden of this.”