Hospital upgrades run into a snag

POMEROY–Funding a major project involving an upgrade to the heating, ventilation and air-conditioning (HVAC) system and an addition to the building to accommodate a new CT scanner, has hit a snag because of some funding rule changes.

In an effort to improve and upgrade aging equipment, initiate new services at the Garfield County Hospital District (GCHD), new needs have been identified and as it stands, a large portion of the project will be funded through a legislative grant received by the hospital over a year ago. Another portion of funding was expected to come through CARES Act funding. However, some funding rule changes have occurred which changes the interpretation of how the funds can be used.

Previously, the GCHD understood the CARES Act funds could be used for capital expenditures, including the modification of infrastructure, such as HVAC systems, which would be used for long periods of time. The new interpretation only allows for the depreciation of the capital improvements, and a period of eight months, or up to July 1, 2021. This rule change has affected this and many other hospitals with projects underway, and now will not be able to claim the full expense amount under CARES Act funding. Co-CEO Mat Slaybaugh stated he expects there will be a lot of pushback on the new interpretation and will cause some further changes over the next few weeks.

In the meantime, GCHD CFO Jim Heilsberg said there is some CARES Act funding which will apply, the Legislative Grant and a Premera Grant to use. It is speculated Medicare funding will cover about 90% of some expenses that benefit the acute-care department, such as the new Nurse Call System. However, it would be a reimbursement and the GCHD would have to fund the projects up front. The board made no decision until further CARES Act funding is resolved.

The architect and engineer have been on site at the hospital mapping out details in preparation for the new construction, and hope to have plans finalized in time to submit the plans to the State before Thanksgiving.

Contracting with Allevant Solutions was a decision made by the GCHD board last spring to initiate transitional care services at the hospital. Allevant has been working with the GCHD to train the nursing staff in special skills needed for transitional care patients and develop a marketing strategy to bring in referrals from the surrounding area hospitals. Co-CEO Jayd Keener reported the staff is making great strides, having mastered weekly “rounding” procedures with patients which includes providers, families and hospital administrators. They are now working closely with discharge centers and have been receiving referrals.

The board gave approval to move forward with financing the new call-light system at the hospital. The CEOs have been investigating the best alternative to purchasing or leasing a new nurse’s call light system since the October board meeting, and found financing would probably be available at a favorable 4% rate, and the finance committee recommended that route. The board approved the financing option as long as a favorable rate could be negotiated, recognizing getting the new system as soon as possible was a priority.

The board approved the purchase of computer equipment for $47,000 after Slaybaugh informed them of the lack of computer efficiencies. He said computer technology is experiencing failures due to being outdated and past life expectancy, which could affect patient care. Medicare will fund about 90% of the replacement expense for the acute care department. He suggested to replace half of the computers, plus several printers and wall-mounted units right away, before the end of the year. The estimated cost would be about $46,000-$47,000. The remainder of computers can be replaced in January, 2021, which would be at a lower cost by a few thousand dollars. Keener added they would like to begin including the replacement of some computers every year in the budget to avoid having to spend so much at once in the future.