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Hillcrest pays off debt early, charts course for future
McCOOK, Neb. — After the recent resignation of Hillcrest Nursing Homes’s administrator, the Board of Trustees began moving forward Wednesday on hiring a new one and checking up on financial concerns.
And with cheers and applause, the board also decided to make the final payment sooner rather than later on the remaining balance of the $1 million Red Willow County borrowed for the facility in 2012.
The county took the loan out on behalf of the facility due to cash flow problems. The facility had been making payments in September, with the final $220,000 payment made Thursday ahead of schedule. The facility is owned by the county but operates out of its own revenues.
In other business, the board tackled other immediate concerns at the special meeting Wednesday.
After a closed session, it re-convened in open session and voted unanimously to pay Don Harpst $32 per hour as an interim administrator. Harpst was the administrator for the facility from 1987 - 1998 and agreed to serve as interim director with the June 27 resignation of Colinda Nappa. By state law, an interim director can be utilized for up to 180 days.
Harpst said Hillcrest is a great facility with “a fantastic staff, very supportive,” and has heard good comments from the residents about the staff. Harpst emphasized that “we are here for the residents and their families.”
“We’re going to get things done,” he affirmed.
The board also took a look at what direction it wanted to take in hiring a permanent director. Options the board discussed included hiring a management firm or hiring an administrator themselves. Board members have already received some resumes, said Randy Dean, board president, with Red Willow County Commissioner Jacque Riener adding that the commissioners have also received a resume.
Management firms can vary in their services, Dean said, from just hiring an administrator or doing consulting for Medicare and Medicaid billing. Dean said Red Willow County Attorney Paul Wood is currently reviewing two management firms under consideration.
Other options mentioned included hiring a management firm on a temporary basis, just to hire an administrator and getting staff input on what they would prefer.
Regardless of how it’s done, hiring a new administrator is “like hiring a coach for a team … a leader that brings everything together,” Riener said. “Rules sometimes change … and you need a new coach once in awhile.”
Hiring one that is knowledgeable in all aspects of a nursing home can be challenging, Dean conceded, with many “knowing a lot about clinicals or knowing a lot about financials, but not knowing a lot about both.”
Riener had another take on it that board members readily agreed with. “Do it right instead of fast,” she cautioned.
The board then delved into financials, with Dean acknowledging that a budget for 2017-18 is not yet completed.
Business manager Renee Wright reported that she and Harpst have already met and reviewed receivables to see what can be accurately expected in revenue for the month as well as for preparing a budget.
Several revenue sources were “overstated,” Wright said, such as Medicare actually being closer to $360 per day and not $500 as projected.
Making those adjustments will help in making financials “a lot closer to the budget and what we (actually) bring in,” she told the board.
Department managers are now in the process of assessing annual expenses needed for their departments as the budget is put together, Harpst said, adding that the budget will be “low on income and high on expenses.”
Board member Mike Eklund asked what contingency was in place for covering a “major malfunction” of some kind. Bob Ebert, maintenance director, said insurance would be used for some instances if had to do with equipment and Wright added there is also a maintenance fund that could be accessed. Eklund asked if there was a plan in place if the expense was “catastrophic,” citing $10,000 or $20,000 and upward.
Reiner responded that it would the county’s responsibility. “We are the financial guarantor,” she said. “it’s the only reason the county is at the table.” She added that there were limitations to this as well, emphasizing that the county also didn’t “want to have (its) wallet out.”
Wright presented the board with bills due, per the recommendation of the financial auditor that the board keeps an eye on financials, Dean said.
The board decided that Wright would send future bills to board members via email for their review, but this may change when a new administrator comes on board, noted Jim Howard, a board member.