Most employees had not seen a statement on their accounts since the end of 2007 and, when they received statements in January 2009, believed the losses were due to fees incurred during a third-party plan administrator switch-over from BK&D to Principal Financial, according to spokesman Ryan Rapier.
“This was not accurate, and, in fact, the losses were almost entirely based on the losses (in) the markets during 2008,” Rapier said.
 Dr. Bart Carter, right, hospital district board president, and Jean Reynolds, operating board chairman, present Charlie Owen with a token of appreciation for his 20-plus years of service on the district board. Owen recently resigned his seat on the board, and a party was held in his honor June 16. Contributed photo |
Another area of concern for employees was the amounts to be distributed into their profit-sharing accounts for 2008. In 2007, employees received a little more than 2 percent of the amount set aside for profit sharing. Using that calculation, most of the set-aside funds ($500,000 for 2008) were distributed into employee accounts. After the new 403b was created in which 1 percent of the first 4 percent of employees’ withholding were matched, Principal attempted to even out the distribution to employees by lowering the profit-sharing percentage to 1 percent. In this way, the medical center continued to match about 2 percent.
“This calculation proved to be incorrect,” Rapier wrote, “and the amount being distributed to employees. . . was less that 30 percent of the funds designated for profit-sharing use.”
Because of that, the hospital district and operating boards voted June 9 to use the previous formula and disburse the rest of the 2008 funds into employee profit-sharing accounts.
Medical Center CFO Keith Bryce made the motion to approve the disbursal. “I think our employees are anxious,” he told the combined boards. “Five hundred thousand is sitting in an account and has not been distributed. Our employees are wanting to see what they will get.”
Bryce also made a motion to approve the continued matching of 25 percent of the first 4 percent withheld from employees’ paychecks for 403b accounts for 2009.
The formula for profit sharing for 2009 has not yet been calculated or approved by the boards.
The board was given an update on the condition of the medical center’s facilities by Roland Knox, chief operating officer.
Knox said he feels confident that, overall, the hospital can “get from today to five years out” if it plans for some immediate needs, which follow:
• Surgery: Pre-and post-operating areas and a GI suite.
• Imaging: Bring MRI into the main part of the hospital from the outbuilding. For X-ray, Knox said the hospital needs to think about spending capital funds to buy digital equipment.
• Obstetrics: Needs the ability to create triage.
• Medical/surgery: Needs new nurse call system to replace out of date model.
• ICU: Space redesign for storage and housecleaning supplies.
• Pharmacy/Respiratory: Space redesign. “This is something we are addressing right now,” Knox said. “This should take us about 10 years out.”
• Home Health and Hospice: Needs different office space.
The next phase regarding the condition of the hospital facilities will be the financial estimates to cover the immediate needs. “Our facilities are incredible,” Knox told the board. “Some components need a little money to keep them up.”
In other hospital news, the board:
• Approved the formation of a pension plan committee, which will monitor and review recommendations before they come before the board. The committee will be comprised of district board member Dr. Susan Jones and operating board members Bruce Stanfield and Cecil Evans.
• Listened to a peer review policy update by Jon Montez, RN, medical staff coordinator. The board was also given quality updates and medical staff policy reports by Lori Buress and Dr. Shirley Rheinfelder, respectively.
Popular Searches
Comments
No comments posted.