CCHHS 3 Year Strategic Plan Approved Unanimously

Cook County Health and Hospitals System Board Meeting -  July 29, 2016

Significant Actions Taken:
The Proposed 3 Year Strategic Plan was approved unanimously with commendations from board members for its

• attention to metrics
• safety net for patients
• best practices
• staff involvement. 

CEO Dr. Jay Shannon said the plan will allow HHS

• to transform into a modern health care system,
• to form partnerships with like-minded organizations
• to retain its focus on patient needs. 

Board Election/Changes:  The Board re-elected Hill Hammock as HHS Board Chairman and Jerry Butler as Vice-Chairman. Dr. Shannon commended outgoing board members Carmen Velasquez and Dorene Wiese for their dedication and leadership. 

Contract Awarded: Morrison Management Specialists were awarded a $13,900,000 contract to provide labor, supplies and software for food and nutritional services, replacing former contractor Sodexo.

Significant Topics Discussed:

• Stroger Hospital now ranks in the 37th percentile nationally in willingness of patients to recommend the hospital; 60% report satisfaction in moving through their visit; 56% report satisfaction with the phone access.
• Valence Health Systems, administrator for CountyCare, has been purchased and will be split into 2 businesses, selling the largest portion to Evelent for $145m.  Valence’s existing leadership will transfer to Evelent and stay in Chicago with no change to services provided to HHS.
• CountyCare membership 154,000 as of June, down from 160,000 in March.  $84.8m = profit plus what HHS pays itself, close to the 2015 figure. Membership is down partly due to inefficiency/challenges of call center: Valence staff inexperienced, are calling from Texas.  In-house call center at Oak Forest must try to conform to state Medicaid regulations and reach newly-insured Medicaid population who are confused about cards, may have no permanent address or phones that can only call out.
• As of June HHS was $49,254,000 over budget, which, combined with its $128,638,000 pension obligation, totals $177,892,000 net loss.  HHS has $5,069,215,000 in total liabilities.  It has 48 days’ cash on hand.  CountyCare’s revenue was budgeted at $26,284,000, but its actual revenue was $17,291,000 (revenue left in the system once other providers are paid.)  The shortfall is attributable to (1) reduced headcount and (2) reduced capture of available revenue when other providers are chosen.
• When Dr. Shannon was asked to comment on budget considerations for 2017, he cautioned that (1) there has been no significant pension reform by the state; (2) no significant growth in state revenue; (3) there will be union-negotiated 2.5% salary increase (resulting in increased pension obligation) and step increases; and (4) HHS will be on its own in generating revenue for capital improvements.  “We will not be able to cut our way out of budget challenges; we have to GROW.  We have to invest in things that allow us to grow.” 

Observer - Linda Christianson                                   Meeting Length: 2 hours, 40 minutes