By Jamie Gardner
The Appling Hospital Authority met for a called meeting on Thursday, December 8. Following a closed-door session, for the purpose of discussing personnel, authority members voted to layoff approximately 35 employees. The motion to make staffing adjustments was made by Jesse Alderman, and seconded by James Twiggs. Chairperson Peggy Miles called for a vote and authority members Alderman, Twiggs, Jeffrey Simmons, Lisa Courson and Donnie Head voted unanimously in favor of the motion.
Authority makes staffing adjustments
CEO Dale Spell reported that the layoffs will occur in physicians’ offices, the system’s business office and would include some mid-level management positions. He added that there would be no cuts to clinical staffing at the hospital.
Prior to the closed session, new Appling HealthCare System Chief Financial Officer Ray Leadbetter was introduced and he updated authority members, along with Appling County Commissioners Jasper Tomberlin and Charlie Leggett, his findings into the state of finances of the health care system.
Leadbetter, who has 20-plus years at turning businesses around, has worked specifically in the health care field for the past 15 years. He is originally from Maine, but stated he moved south several years ago and has worked at four hospitals in Georgia during his career turning those systems around. He told authority members he has two basic philosophies and they are to make patient care priority number one and, second, to make sure a health care system can afford to make priority one a reality.
The CFO stated that when he first looked at the system’s finances, when he arrived, the financials had indicated that the system made a small profit last fiscal year. However, he stated that after reviewing the financial information more in-depth, it looks as if the system actually operated at a loss for the fiscal year. Leadbetter reported that the system had a total gross revenue in Fiscal Year 2010 - 2011 of $83,105,214.00 of which it operated/collected $33,090,039.00. The CFO stressed that these figures are unaudited and preliminary figures adding that he would have a more accurate report on the finances at the next authority meeting in January.
One area of concern that Leadbetter did discuss at length with authority members was system payroll and benefits for system employees. He stated that of the $33,090,039.00 operating budget, $16,363,621.00 was paid out for salary expenses and $3,922,008.00 in payroll benefits. Leadbetter stated that salaries and benefits are significantly out of line in comparison to net revenue and volume in certain areas.
Leadbetter pointed to a number of areas that have already improved such as up-front collections (patient deductibles), reduced costs associated with prescriptions through the 340B Prescription Program, and reduced costs associated with the Senior Care Unit that is now run by the health care system instead of through a contractual agreement with an outside company. He also noted that November ended on a better note and that the system is starting to see some positives as a result of recent changes. The CFO also stated that the system has got to do a better job of monitoring expenses. He added that he would soon begin reviewing each individual service line to make certain each line is reaching its maximum potential, which would include physician offices.
“You’ve got the census in the hospital, the nursing home and the Senior Care Unit,” said Leadbetter. “There is no reason this system should not be financially sound.”
Prior to the closed session, new Appling HealthCare System Chief Financial Officer Ray Leadbetter was introduced and he updated authority members, along with Appling County Commissioners Jasper Tomberlin and Charlie Leggett, his findings into the state of finances of the health care system.
Leadbetter, who has 20-plus years at turning businesses around, has worked specifically in the health care field for the past 15 years. He is originally from Maine, but stated he moved south several years ago and has worked at four hospitals in Georgia during his career turning those systems around. He told authority members he has two basic philosophies and they are to make patient care priority number one and, second, to make sure a health care system can afford to make priority one a reality.
The CFO stated that when he first looked at the system’s finances, when he arrived, the financials had indicated that the system made a small profit last fiscal year. However, he stated that after reviewing the financial information more in-depth, it looks as if the system actually operated at a loss for the fiscal year. Leadbetter reported that the system had a total gross revenue in Fiscal Year 2010 - 2011 of $83,105,214.00 of which it operated/collected $33,090,039.00. The CFO stressed that these figures are unaudited and preliminary figures adding that he would have a more accurate report on the finances at the next authority meeting in January.
One area of concern that Leadbetter did discuss at length with authority members was system payroll and benefits for system employees. He stated that of the $33,090,039.00 operating budget, $16,363,621.00 was paid out for salary expenses and $3,922,008.00 in payroll benefits. Leadbetter stated that salaries and benefits are significantly out of line in comparison to net revenue and volume in certain areas.
Leadbetter pointed to a number of areas that have already improved such as up-front collections (patient deductibles), reduced costs associated with prescriptions through the 340B Prescription Program, and reduced costs associated with the Senior Care Unit that is now run by the health care system instead of through a contractual agreement with an outside company. He also noted that November ended on a better note and that the system is starting to see some positives as a result of recent changes. The CFO also stated that the system has got to do a better job of monitoring expenses. He added that he would soon begin reviewing each individual service line to make certain each line is reaching its maximum potential, which would include physician offices.
“You’ve got the census in the hospital, the nursing home and the Senior Care Unit,” said Leadbetter. “There is no reason this system should not be financially sound.”
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