IRON MOUNTAIN – Dickinson County Healthcare System is switching employee group health insurance to Consumers Mutual Insurance (CMI) of Michigan.

The move was the result of a recommendation by the DCHS administration and the Health Insurance Task Force.

Significant reasons cited for the switch from Blue Cross/Blue Shield was CMI’s chronic disease management benefit and extensive list of preventive services that are covered 100 percent.

This approach encourages the management of illness to prevent complications and help provide a higher quality of life.

Additionally, as an approved provider of health care in CMI’s network, DCHS will receive higher reimbursement for the services it provides.

The Health Insurance Task Force is comprised of hospital employees from a diverse array of departments and includes representatives from both the Michigan Nurses Association and AFSCME unions. The group works closely with staff from Human Resources and Employee Wellness and meets regularly to continually review emerging trends in health insurance coverage options. They balance these options with the needs of employees and their affordability for the health care system.

The mission of the task force is to provide mutually affordable health insurance options that are flexible and easily administered with incentives to encourage responsible choices.

“Consumers Mutual was organized as a result of the federal Affordable Care Act passed in 2010,” said John Schon, DCHS administrator-chief executive. “After close review of their plan coverages and an in-depth analysis of costs, it was determined that this emerging company was a better fit for both our employees and our health care system.”

Consumers Mutual is an independent, nonprofit organization formed to help bring affordable insurance to Michigan citizens. It is a new type of health insurer called a Consumer Operated and Oriented Plan (CO-OP). Its profits are reinvested into the organization and used to lower premiums, expand benefits, improve quality, and pay providers fairly.

In other action, hospital officials:

– Approved various motions for capital purchases, which included the following: additional renovation costs for the newly relocated OB/GYN Clinic building at a cost not to exceed $2,500; a wound care hyperbaric chamber at a cost not to exceed $70,400 (this will save $13,500 per month in rental costs); two replacement ultrasound machines at a cost not to exceed $276,000 (as planned for in the 2014 budget); and an x-ray film digitizer – at a cost not to exceed $18,500 to convert orthopaedic and podiatric film to digital records for incorporation into the patients’ electronic medical records.

– Approved various physician contracts including: Dr. John Sand for sleep medicine services; Dr. Barry Johnson for EMG and EEG services; Dr. Donald Jacobs for family practice services; and Dr. Alexis Whaley for sleep medicine and pediatric services.

– Approved requests from the Building Committee as follows: renovation of Health Information Management/Medical Records and Quality Management at a cost not to exceed $84,000; renovation of Pharmacy and equipment upgrades at a cost not to exceed $94,000.

– A review of patient activity throughout the month of October showed the following: cared for 341 inpatients; cared for 16,554 patients in the outpatient hospital setting including the Emergency Department; cared for 11,000 patients in physician offices; cared for 1,238 patients in the Emergency Department. Uncompensated care provided for the month totaled $583,981.

– Reviewed and approved the financial report for October. DCHS had $8,620,364 in total operating revenue and expenses totaling $7,818,790 that resulted in a gain in operations of $801,574. This compared to a gain of $141,825 in October 2013. After the calculation of non-operating revenue and expenses, October closed with a positive bottom line of $699,484. October’s performance brought the 2014 year-to-date gain in operations to $2,898,420. After the calculation of non-operating revenue and expenses, the 2014 year-to-date bottom line is a positive $2,843,763.

– Heard Trustee Adam St. John praise the hospital administration, trustees and employees for leading DCHS’s financial turnaround in 2014.

– Heard Tamara Juul, executive director of the Dickinson County Hospital Foundation, report “phenomenal” attendance at the recent Bras for a Cause event, with $12,000 raised to assist cancer patients and provide mammography software upgrades.