SHAUGHNESSY REHAB HOSPITAL - BOARD OF TRUSTEES MEETING MINUTES OF SPECIAL MEETING AUGUST, 1979 SPECIAL MEETING
BOARD OF TRUSTEES
August 13, 1979
On Monday evening, August 13 , 1979, at 5 : 00 p. m. a meeting
was held in the Board Room of the hospital. Those present were:
Doctors Shaughnessy and Woll, Miss Dumont, Messrs. Carnevale
and Brophy; Attorney John O'Leary, Mr. Joseph Connolly; and from
Blue Cross, Manager of Provider Contracts , Mr. Joseph Fermano
and his assistant, Mr. Marty Atkins.
Mr. Brophy explained that the purpose of the meeting was to
discuss the meeting scheduled for August 16 with the Rate Setting
Commission regarding the CR-1 contract. Reviewing the situation
he stated that the Commission had failed to approve the contract
on July 12, that they had in fact "tabled" the matter and that
Mr. Greenwood had so notified Mr. Affanato on July 13 , following
up with a letter dated July 20 to Mr. Affanato. Blue Cross plans
. to resubmit the contract for approval.
The letter from Mr. Greenwood enclosing a letter of support from
Carroll Colby of the North Shore Health Planning Council was
discussed, as well as a second letter dated July 26 from Mr. Greenwc
wherein the following reasons were presented for the Commission' s
tabling of the contract and the Blue Cross subsequent withdrawal
of the contract : (1) The contract should wait until the hospital
meets the conditions of participation, rather than using an addendum
lengthening the qualifying period; (2) The belief that financial
constraints due to penalties of the Medicaid reimbursement and the
financial viability of the hospital could not sustain the level of
rehabilitation required; and (3) The need for a consensus as to
the demand for these types of services at this hospital.
Mr. Brophy stated that he had received a letter setting up this
meeting from Mr. Greenwood, for the purpose of considering support
needed to obtain approval of the CR-1 contract, and also a letter
from John A. Daly, Executive Secretary of Rate Setting allowing
the hospital to be present at their meeting on August 16 to
present oral comments to assist the Commission in its deliberations .
Asked by Mr. Brophy for his evaluation of our present position, Mr.
Fermano of Blue Cross indicated that he felt the letter from the
local HSA is a very positive point and makes a very strong commit-
ment. He stated that he felt the Commission would then discuss
the addendum which waives the Criteria for Participation for a
one year period (actually originally for six months) and we would
then have to sell them on the fact that at the end of a one year
period the hospital would be in conformity. The requirement that
2/3 of admissions must be acute rehabilitation and z of all dis-
charges must be to either acute care or a lesser level of care
was reviewed. Also, we will need strong statements from the
hospital regarding its ability to meet the resource level of funds
required to fulfill these stipulations .
Minutes - Meeting of August 13, 1979
Page 2
Mr. O'Leary asked what the requirement for nursing hours per patient day
was under the contract. Mr. Atkins replied that it was not stated but
that hospitals such as New England Rehab and Braintree are up at around
6 to 7 hours per day. Miss Dumont stated that we are presented at a level
of 3.5 to 4 hours per day.
The report that Rate Setting hears that the hospital has "budget" problems
every year with the taxpayers was discussed. Mr. O'Leary stated that they
are apparently concerned about "short-fall", but that obviously the city had
made a very large corm-itment. He noted that Blue Cross had indicated in
their letter of July 26 their belief that the hospital cannot presently
sustain the level of rehabilitation required because of the question of
financial viability. Mr. O'Leary also suggested that possibly Blue Cross
might consider the waiver with the one-year time limit to provide the hospital
with time needed to do a marketing job. Taking all of these facts into
consideration, Attorney O'Leary stated that he is considering the advisability
of withdrawing the contract from consideration and waiting.
Doctor Woll discussed the anticipated length of stay for rehab patients under
the contract. Mr. Atkins reviewed their expectations, saying that a 30-day
stay or less was usual. Doctor Woll commented that this was an unrealistic
figure and cited the example of patients being discharged from these other
rehab facilities at this point and then needing to come here at least on
an out-patient basis to continue their treatment.
Mr. Ferman queried, assuming that the Commission accepts the addendum,
would the hospital be able to attract the proper patients. Doctor Woll
replied that this could be difficult and that he has already instituted
a program of going out to other hospitals with a presentation about the
rehab department with members of his staff. Mr. O'Leary reiterated his
feelings that it would take the hospital more than two days to properly
prepare for the hearing with the Commission.
In view of Mr. O'Leary's advice, Mr. Brophy expressed the opinion that he
would like to be absolutely sure that when we do go in to discuss the
contract, we will present the best case that we have, and that based on
the merits of the case, we would either win, lose, or draw.
Mr. Atkins informed those present that he felt we had a good chance in
our scheduled hearing this week because of the fact that one of the
Chairmen of the Commission, Peter Hiam, is on vacation. It was his feeling
that the other two members of the commission could be swayed to vote in our
behalf.
Attorney O'Leary repeated that he would like to postpone, and suggested a
time early in September to present our case to Rate Setting. Mr. Brophy
agreed, stating that we should hold off until we can be properly armed with
whatever information we feel is necessary, with the proper people, etc.
Minutes - Meeting of August 13, 1979
Page 3
Thereafter, Mr. Fermano agreed that he would go to the Commission the next
day, pull the contract and ask them to hold it until we are ready. Questioned
about the Blue Cross patients we have already accepted, Mr. Atkins stated that
Blue Cross would stand by the ccmmitment to cover them, as per Mr. Greenwood's
agreement.
Mr. Atkins offered to go in to the Commission the next day to get a reading
as to probable results of a hearing. Mr. Connolly stated that he did not
feel this was a good idea and that it was inconceivable that they would vote
without the Head Cmutissioner. Mr. Atkins revised his propsal, suggesting
that he would discuss with the Cctmdssion the possibility of a six-month
waiver rather than a one-year waiver. Mr. Atkins agreed that he would
contact Mr. Brophy to let him know how this works out.
Mr. Brophy thanked Mr. Fermano and Mr. Atkins for their time in attending
the meeting and they left, with the others still in attendance.
Mr. Brophy asked Mr. O'Leary to send him a listing of the data required
when we go before Rate Setting Ce mission in September. Mr. O'Leary
replied that it would perhaps be easiest to take a few minutes at this
meeting and to pull together this listing, so that we would be able to
comnence working on it. Accordingly Mr. O'leary reviewed the requirements
and evolved the listing which is attached hereto and marked as "APPENDIX A".
Meeting adjourned at 5:05.
Respectfully submitted,
c
Joanne McManus
Executive Secretary
APPENDIX A
Meeting of 7/13/79
Blue Cross
in response to Mr. Brophy's inquiry as to exactly what substantiation he
would need for the CR-1 contract, Mr. O'Leary listed the following:
1. Document the case for meeting all of the Criteria of Eligibility
listed on Page 8 of 63 of the contract.
2. Documentation regarding organized Medical Staff.
3. Substantiate the formal mechanisms on a team basis (minutes of
all meetings, etc.)
4. Establish that the program is individualized.
5. Some idea of how things are going with respect to new admissions.
(Check out definition of "Covered Rehab Care" on page 2, definition F
and see if we are in compliance.) Suggest that we make a study of
admissions for the past 6 months and the same 6-month period a year ago,
comparing statistics on patient origin, average age, number of rehab
candidates, where discharged, etc.)
6. Marketing - Would like. to. kncw from Dr. Wbll about how we are changing
referral patterns of the doctors who refer patients. (document speaking
before Medical Staffs of other hospitals)
7. Regarding financial viability of the hospital, Dr. Woll and Van should
address the question of the extent of rehab and whether we need increased
staffing to sustain the level of rehab as required by the contract.
8. Get copy of letter from Beverly Hospital about trnasfer of rehab patients.
9. Updated statement on need, from the following sources: Health Planning
Council, individuals, groups who can be used as a consensus.
(refer to original Certificate of Need) Also check report of staff to
Public Health Council on DON regarding Beverly application. Find out
if report of staff was accepted in total; otherwise refer to Health Counci.
report.