by Richard Uhlhorn
The hospital board of directors approved moving ahead with the $440,000 roofing option provided by Bouten Construction to secure the roof with adhesive instead of screws that are not available because of supply chain issues. Chairperson Marty Murphy was visibly upset with the decision that was forced on the board to keep the hospital project on schedule.
The decision came after Bouten’s Project Manager, Brandon Potts, told the board that he had discussed the option with its roofing subcontractor, Royal, and that they were not, at least at this time, willing to share in the cost of Option 3.
Potts did say that Bouten will pay $150,000 towards Option 3, leaving the hospital with an unexpected $300,000 change order to pay for.
The roofing contractor, according to Potts, has already spent an estimated $100,000 on roofing putting on a temporary roof. “They has offered to pay for some labor and material costs, but we still have some details to go over.
Murphy told Potts that she was disappointed that was the only offer Bouten can bring to the table.
Jordana La Porte remarked that her concern was future problems. New board member Lori Withrow added that the fasteners should not have been an issue. The problem with the board was that they only had three days notice of this issue even though Bouten has detailed the potential risk of supply chain issues since August of last year.
He also stated that Bouten has identified electrical and mechanical systems as a risk. “Supply chain shortages are completely out of our control,” said Potts.
It turns out that Bouten has supplied the hospital with monthly reports and asked if they were in receipt of them. Murphy said, “No, we don’t and need to change some internal processes.”
Jeremy Jaech stated that the hospital needs to move forward to keep the project on schedule. “We have no alternatives to getting hit with a $300,000 bill. I move to accept this change order.”
Murphy, visibly upset with the situation, moved the meeting forward after the vote to move forward with Option 3.
In other business:
Jeremy Jaech said he would really like to see an overall cost to move estimate. Murphy replied that they would get a more firm cost for the board to look at.
The board reported it had approved a new 40 year lease with Heritage Heights. “We are planning on have a meeting to find out exactly what the need,” said Emmitt Schuster, interim CEO.
Murphy remarked that the hospital has a list of new equipment worth an estimated $6 million dollars for the new hospital. “We have difficulty in going forward with increasing costs of this project. I would like to look at a list of equipment and prioritize it,” she said.
Murphy wants the staff to look at their equipment priorities and determine exactly what equipment they need immediately for the new hospital. “What needs to be purchased now and what can be purchased later,” she asked. Murphy is most interested in hospital equipment that can produce revenue.
Jaech asked what the hospital is spending to make the move in totality. “I just want to know how much money is needed. It doesn’t have to be in a great amount of detail,” he said. Murphy said they would get an updated estimate of the soft costs.
CFO Cheryl Cornwell reported that the hospital has:
- $2,270,363 Cash on Hand
- $6,449,853 Accounts Receivable – Less reserves ($3,345,589) for a;
- $3,104,264 Net Accounts Receivable
- Total assets of the hospital is $25,530,130.
The hospital has $212,506 in Reserves;
Unrestricted funds equaling $860,476; and
Restricted funds of $4,139,524.
Jordana La Porte asked Cornwell if the hospital was billing or not because the Accounts Receivables were up. Cornwell replied that it was due to normal ups and downs which are to be expected.
In January there were:
- 358 Emergency Room visits
- 18 surgeries
- 747 Imaging procedures
- 3,822 Lab tests
- 370 Rehabilitation visits
- 92 EMS runs
- 379 Clinic visits
- 86 Specialty visits
- 293 Express Clinic visits.
The hospital received good news on elective surgeries. It was reported to the board that restrictions on elective surgeries has been lifted by Governor Inslee.