In Oct. 22 Issue
Saying that the only thing they differed over was how many dollars should be held as reserve funds the auditor delivered a clean bill of health to the Russell County Hospital.
David Richards of Dean Dorton and Richards said there is about $500,000 held in reserve in two different accounts which he thought could be reported as profit, but officials said they are holding that money for as insurance against charge-backs under federal Medicare and Medicaid programs.
"It is fine if you want to do that," Richards added. "-You did have a great year."
He said the hospital's debt to equity ratio is much better than comparable hospitals.
The auditor also noted the hospital has improved facilities and pay levels compared to other hospitals.
After that the matter of the management contract between Alliant Management Services and the hospital board was reviewed.
Alliant Vice President Jeff Buckley took credit for the good news from the auditor, the improvements in collections, staff pay, infrastructure and the reduction in local debt.
"We have gone from a hospital on the brink of bankruptcy and closure to a hospital with a future," Buckley summed up.
Board attorney Jeff Hoover said they had essentially worked out a 5-year contract with the same provisions as the previous contract, with a $149,940 in annual compensation to the management company, and a 90-day no-fault termination clause for both sides.
Board Member Chris McQueary expressed dissatisfaction with the way the termination of the hospital's last CEO was handled. "We took a 40 to 50 thousand dollar hit without our knowledge."
He was referring to the pay-out to the previous CEO and said that no attempt had been made to advise him of that move before the fact.
There were typographical issues and a provision baring the hospital from employing management staff if the contract was terminated that were to be removed from before the next board meeting.