The Newman Regional Health Board of Trustees voted unanimously Wednesday afternoon to accept a restructuring plan intended to revive the hospital's dwindling income.
The board heard the proposal before going into an executive session for about two hours to discuss the plan and the personnel who will be affected by the changes.
The proposal, discussed in public session Wednesday, includes several changes to services at the hospital, including eliminating Newman Home Health, the employee assistance program and Recovery Road. Among other changes recommended were completing a renovation of the third floor in the next 120 days and consolidating services operations from four floors to three floors.
Other moves were in the proposal, including the possibility of forming a Public Building Commission, which would need the approval of Lyon County. It would allow the hospital to refinance bonds at Lyon County’s rate. Total savings of the PBC would be $3,334,473 over 10 years.
A department analysis was done on each department to find savings by department. This netted a savings of about $1,853,000. This would include letting employees go home when census was down.
The total financial impact of the proposed restructuring would be about $3.8 million.
“That’s not going to happen all at once,” Chief Executive Officer Robert Driewer said. “It will take some time.”
Driewer said although the amount looks large at first glance, the hospital reported a loss of more than $1.6 million last year and lost more than $579,000 the first month of this year.
Tammy Hoyt, an employee of Newman Home Health, spoke to the board about the proposed changes.
“To say we’re a duplication of services is an insult,” Hoyt told the board. “I feel we provide the highest quality in nursing care in this community. ... We are a part of Newman Regional Health.”
Hoyt spoke through tears about her passion for the field and her profession.
“What we can do is provide the best care for this community to provide a positive image for this hospital and that’s what we do and we do it well,” she said. “We serve a 50-mile radius, infants to 100 plus years of age. We keep patients out of the hospital, which doesn’t affect further losses for the hospital. We’re able to send patients home sooner because you feel we can provide care in-home.”
After executive session was called, Hoyt spoke privately about the impact on the Emporia community if Newman Home Health is shut down.
“I’m very worried,” she said, adding that she has four children she would have to take out of Emporia schools and her husband would have to leave his job as well if Home Health closed.
Hoyt said the country has a shortage of 600,000 nurses and Emporia’s top nurses will be forced to leave here for areas that are hiring.
In other business, the board discussed the hospital’s end of the month financial report for January, which illustrated the need for the hospital to make changes. Inpatient revenues for the month were under the budgeted amount by $1,595,104. There were 468 fewer patient days for January than the hospital had budgeted for. The outpatient side of the hospital suffered as well as it was $468,689 under budget for the month. The hospital saw a operating loss for the month of $579,589 and a net loss of $547,512.