×

DCHS officials optimistic

IRON MOUNTAIN — Dickinson County Healthcare System is showing a 2019 operating profit of nearly $1.7 million entering the fourth quarter, only a year after appearing on the edge of bankruptcy.

Dennis Smith, DCHS restructuring officer, said the hospital anticipates more success in physician recruitment, including upcoming interviews with pediatricians, a dermatologist and even a psychiatrist.

“If we got them all, it would be a miracle,” he told the hospital board Thursday but added it’s an encouraging sign.

The hospital still is awaiting a decision on its application for a $25.65 million federal loan that would allow it to refinance its higher-interest debt and purchase new equipment.

Yet even without that assistance, the board Thursday approved $500,000 in various capital purchases over the next three months.

“It’s great that we’re able to spend half a million dollars,” Trustee David Brisson said. “We haven’t been able to do that for a while. Things are starting to move in that direction.”

The federal borrowing has been planned since October 2018, when Washington D.C.-based Venable LLP was hired to organize a restructuring that would not require bankruptcy. A draft application for the U.S. Department of Agriculture Rural Development loan was first submitted in July.

Smith said the application has advanced to its next level of review by officials in Washington. Although DCHS had hoped to receive the funds by the end of the year, there is no timetable for a decision.

The board reviewed a report showing $8.43 million in revenues in September against expenses of $8.19 million. After calculating non-operating revenues and expenses, September closed with a positive bottom line of $233,759.

“We did have lower (patient) volumes again,” said Trustee Jeffrey Campbell, who is chairman of the finance committee.

The hospital has 50 days of cash on hand, which compares to 26 days in early December.

In other action, the board:

— Learned from Smith that switching employee health coverage in January from United Health to Blue Cross/Blue Shield should save $1.35 million a year. Employees will share in the savings with lower premium contributions.

— Heard Manager Tina Zarcone report that Dickinson Home Health has earned a five-star rating from the Centers for Medicare and Medicaid Services, placing it in the top 7% in the nation. Through August of this year, the agency has $301,000 in profit. Currently, 70-some patients in a 50-mile radius of Iron Mountain seek services each month. Zarcone attributes the success of Dickinson Home Health to “a few people with a whole lot of passion.” In two years, a hospice program could be in place, she said.

— Will welcome new CEO Chuck Nelson on Monday. Nelson is a former Upper Peninsula regional CEO for Aspirus Health Care.

— Received the September patient activity report that showed DCHS cared for 197 inpatients and 13,048 as outpatients, including 1,204 in the Emergency Department. A total of 8,658 patients were seen in physician offices. Uncompensated care for the month totaled $684,307.

Jim Anderson can be reached at 906-774-3500, ext. 226, or janderson@ironmountaindailynews.com.

Newsletter

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *
   

Starting at $4.62/week.

Subscribe Today