Hospital discusses proposed contract with Allevant

POMEROY-The proposed contract with Allevant Solutions, LLC was the topic of discussion during the regular Garfield County Hospital District (GCHD) Board meeting January 6, 2020. Allevant was developed by the Mayo Clinic and Select Medical to create a treatment destination for post-acute care and rehabilitation through skill nursing services. If the GCHD chooses to contract with Allevant, they will receive training for their medical staff and marketing services to bring in patients for the swing bed portion of the hospital. The cost of the contract is currently being offered by Allevant at $10,000 per month, which is a reduction from the normal $30,000 charge for the same services.

A telecommunication and slide presentation explaining how spending the money on the Allevant contract will be a benefit by GCHD Chief Financial Officer Jim Heilsburg through the type of Medicare reimbursement program the hospital operates. The cost will be allocated as overhead expense, which will increase the amount that Medicare reimburses the hospital. Examples given by Heilsburg demonstrated that this cost reimbursement will create a profit for the GCHD, hence his former statement that “we have to spend money to make money.”

At the special meeting on December 17, 2019, most of the hospital board members were skeptical about the potential success of such a program in Pomeroy. Former Commissioner Gary Houser suggested that they get the opinion of Heilsburg, and Chairman Cindy Wolf asked the finance committee to work on the figures and come back to this meeting with information about how the services of Allevant will specifically work for the GCHD. Commissioner Steve Cannon, on the finance committee, stated that working through these examples with Heilsburg had finally made sense to him and he is now in favor of proceeding with the contract.

Commissioner Jen Dixon remains uncertain about the proposal, stating that she does not believe that there will be enough patient referrals to make it work. She added that the only way this model will work is if the GCHD continues as a Critical Access Hospital. If they should decide to make some major changes and follow a different direction, the contract with Allevant would not benefit them at all.

Co-CEOs Mat Slaybaugh and Jayd Keener favor the contract. Keener stated that the current nursing staff does not get enough opportunities to use their skills, and many choose to move elsewhere. She believes they would welcome the training and be more motivated to stay with the GCHD. Slaybaugh has talked to another marketing firm which would charge $5,000 for an onsite visit, plus $2,500 per month for just the marketing services. However, this expense would not be allowed for Medicare reimbursement.

Heilsburg also favors the contract with Allevant. He has had experience working with them through a hospital in Klickitat, Washington, which is very similar to the GCHD. Cannon stated that the Dayton hospital pursued the same type of model on their own, but it took about two years to see a difference in their revenues. The contract with Allevant could start within a month, take about six months to be fully in operation, and about 18 months to see actual growth. At that point, the GCHD could end the contract for non-performance if there is no growth. Also, if the GCHD should decide to use a different model before the 18-month term ends, they would be able to end the contract at any time.

Wolf asked if the board wanted to have a vote at this meeting to make a decision on the contract, but no one appeared ready to make that commitment. She asked for the CEOs to bring them more information. A new community committee has been formed as a sounding board for the hospital, and they will have their first meeting Wednesday, January 8, 2020 at the hospital’s learning center. The committee is made up of people representing entities that will be impacted by the decisions and success or failure of the GCHD.

The newly elected commissioner, Mike Field, was sworn in, and the board determined that Cindy Wolf will remain as the Chairman of the Board, as well as Chris Herres as the Secretary. The next regular meeting of the GCHD will be February 3, 2020, at 6 p.m. at the Senior Center on Main St.