SHAUGHNESSY REHAB HOSPITAL - BOARD OF TRUSTEES MEETING MINUTES SEPTEMBER, 1979 DR. R ERT SHAUGHNESSY CHRONIC DISEASE/REHABILITATION HOSPITAL
MEETING OF THE BOARD OF TRUSTEES
September 18 , 1979
The September meeting of the Board of Trustees was held in the Board Room on
Tuesday, September 18, 1979. The meeting was called to order at 7:05 p. m. ,
Mr. Brophy presiding.
Trustees present were: Messrs. Blenkhorn, Brophy, Carnevale, Jennings, Noonan,
Pelletier, Richards and St. Pierre; Doctors Shaughnessy and Kaplan; Mesdames
MacDonald, Moulton, Norton and Sullivan.
Mr. Brophy opened the meeting with an introduction of Mrs. Christine Sullivan,
newly appointed Trustee, to the members present, as well as Mr. Louis Kausel,
newly appointed Director of Fiscal Services.
MINUTES OF THE PREVIOUS MEETING
Reviewing the minutes of the meetings of June 26, 1979 and July 24, 1979,
the President reminded the Board that it is the prerogative of the Board
to ask questions about the minutes and that they should be aware that a
vote to accept the minutes is a vote in agreement with its contents.
Thereafter, upon motion duly made and seconded it was VOTED TO APPROVE THE
MINUTES OF THE MEETINGS OF JUNE 26, 1979 AND JULY 24, 1979 AS WRITTEN.
The President reviewed the minutes of the meeting of August 13 with members
of the Board, staff, our attorney and account and Blue Cross representatives
wliich was held in preparation for a meeting before Rate Setting scheduled
for August 22. It was the President's feeling that the hospital was not
well prepared to appear at this hearing regarding our capabilities to provide
the services under the CR-1 contract. At this meeting Mr. O'Leary brought
to our attention House Bill 6430 which if passed by the House and Senate
would force Blue Cross to provide us with the same contract as is held by
the acute hospitals. It was the attorney's feeling that we should not sign
the contract at the present time, awaiting the outccme of this bill, as we
would be bound by the terms of the CR-1 contract. The third reading of the
bill was scheduled for September 17, but we have not heard anything as yet.
Mr. Carnevale added that Blue Cross was presently putting together an alterna-
tive to this bill which might be worthwhile.
REPORTS
FINANCIAL The,Treasurer reviewed the Financial Statement for the year ended June 30,
REPOR.P 1979. The Income Statement indicates a deficit of $176,065 for the year,
as ccupared to $866,302 for last year, which indicates a significant improve-
ment. The Schedule of Revenue shows actual revenue of $6,396,000 as compared
to last year's figure of $5,455,000, indicating increased volume as well as
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1979 - Page 2
an increase in rates. Mr. Carnevale indicated that a breakdown had been
done of the Day Care revenues, that the Finance Ccumttee had reviewed
it and was satisfied with it. ' Total expenses for the year were $4,437,805
which was under budget by $289,032. The Schedule of Cash Receipts and
Disbursements shows a total of $4,738,144 received for the year and $4,456,054
disbursed, leaving an excess of $282,090 for the year in cash. Last year
resulted in a deficit of $287,000 on the cash basis.
The Accounts Receivable Summary showed a balance of $1,419,766 at the end
of the year. Mr. Carnevale indicated that monies such as the $143,270 due
from Medicaid Rate Adjustment and the state running out of money were res-
ponsible for this figure being unrealistically high.
BAD DEBTS Reviewing the Schedule of Bad Debts, Mr. Carnevale reported that they had
been reviewed by the Finance Committee who had voted to write off $188,565 and
to put these accounts out for collection. This would be a direct reduction
on our receivables balance.
Mrs. Sullivan asked whether Hill-Burton monies were written off on bad debts.
Mr. Kausel replied that they were not written off, but were a deduction.
He also stated that the policies governing Hill-Burton were being revised and that
he would prepare an update for the next meeting.
MEDICAL In the absence of the President of the Medical Staff, the Secretary reported
STAFF that there was an item on the agenda for the upcoming Quarterly Medical Staff
meeting scheduled for September 20 which requires Board action, the approval
of various physicians for medical staff membership. After discussion, ON
MOTION MADE AND SECONDED IT WAS VOTED THAT SUBJECT TO THE APPROVAL OF THE
MEDICAL STAFF, THE FOLLOWING APPOINTMENTS BE CONFIRMED:
William P. Adams, M. D. Associate Staff with privileges in Surgery
Frederick O. Buckley, Jr. , M. D. Active Staff with privileges in Surgery
James J. DiResta, D. P. M. Consulting Staff with privileges in Podiatry
William J. Goldman, M. D. Active Staff with privileges in Internal
Medicine
Murray J. Goodman, M. D. Active Staff with privileges in Orthopedic
Surgery
Maurice Greenbaum, M. D. Active Staff with privileges in Internal
Medicine.
Roger Mason, M. D. Active Staff with privileges in Surgery
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STANDING COMMITTEE REPORTS
BUILDING & SPACE Mr. Pelletier reported that he had been in contact with Mr. Foley of
COMMITTEE the Park Department who has agreed to provide us with two park benches
and that he would replace the missing tree from the median strip in
the road, with the cost of the tree to be billed to the hospital.
NURSING There was no report from the Nursing Committee.
COMMITTEE
NOMINATING Mr. Richards reported that the Nominating Committee had met and submitted
COMMITTEE the following slate of officers for the year 1979-1980:
President: Robert S. St. Pierre
Vice President: Effie MacDonald
Treasurer: Anthony Carnevale
Secretary: Mildred Moulton
It was moved and seconded that the nominations be closed. It was then
VOTED THAT THE NOMINATIONS BE CLOSED.
On motion made and seconded, it was VOTED THAT THE SLATE OF OFFICERS
PRESENTED BY THE NOMINATING COMMITTEE BE ACCEPTED BY THE BOARD OF TRUSTEES.
FUND RAISING Reporting for the Fund Raising Committee, Mrs. MacDonald stated that the
CODMLIT'i Auxiliary planned to donate $1,200 to the Rehabilitation Department for an
exerciser, $1,200 to the Recreation Department and $200 for pedals for the
Nursing Department.
ITUMM RESOURCES Miss Norton reported that a new Director of Volunteers had been selected
COMMITTEE by the new Personnel Director and that Mr. Kausel was the last person
selected by her ccmmittee and he had just come aboard this week.
SALEM HOSPITAL Mr.Noonan reported that the Salem Hospital Board had reconvened recently
but that he had no report.
On motion made and seconded it was VOTED TO ACCEPT TI- STANDING COMMITTEE
REPORTS.
UNFINISHED BUSINESS
Reviewing the status of the Executive Director's position, Mr. Brophy
reported that he had spoken with our attorney, Mr. Quinn who stated that
negotiations were underway and that he expected to report some progress
in the near future. He stated that he anticipates a chance to review
a draft of the offer prior to the offering. Some concern was expressed
about the legality of the Board's operating the hospital under the con-
ditions existing. Mr. Jennings summarized the situation by stating that
there were only two ways to go: (1) to proceed to negotiation or (2)
to proceed to go to court. It is his opinion that we have not allowed
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18, 1979 - Page 4
a sufficient amount of time to get a response.
BLUE CROSS Referring to the study which was requested by Mr. O'Leary in preparation
for going before Rate Setting on the Blue Cross contract, Miss Dumont
presented her report which is attached. Mr. St. Pierre requested that
Miss Dumont acquaint Mr. Affanato with her study as he might be asked
to work as a consultant on this matter.
Summarizing her report on utilization of the hospital, Miss Dumont stated
that it was apparent that we were not seeing the Blue Cross type of
patient, and that there was a routine for these rehabilitation patients
to go first to an acute hospital and then to one of the other rehabilita-
tion hospitals for a period of time. Doctor Woll stated that in reviewing
these studies he sees that the Blue Cross CR-1 contract offers this hos-
pital little or nothing and is very unrealistic. He made a very strong
appeal that we go slowly on this contract and bide our time to see what
is happening in the Legislature. He complemented Miss Dumont on the
excellence of her report.
PERFORMANCE Mr. Brophy reported that he had asked Mr. Affanato to fill out a Performance
APPRAISALS Appraisal form which he had provided for Miss Dumont, Doctor Woll and Mr.
4 Corrigan. He read the memorandum received from Mr. Affanato (attached)
and requested the Secretary to send copies of these appraisals together
with the suggested forms to each Trustee in preparation for review at
the October meeting.
TIME CLOCKS Time clocks were discussed as well as the recent article in the Salem
Evening News announcing that clocks had been purchased and it was anti-
cipated that all union personnel would soon be required to punch. It
was agreed that the hospital should wait to see what the directive is
from City Hall regarding time clocks.
OLD BUSINESS
SERVICEMASTER Mr. Brophy reported that he had received a new contract from Servicemaster
along with a letter stating that-it was their intent to keep Mr. Greene at
the hospital for at least one year, although their legal department did
not deem it proper to include this in the contract. Copies of the contract
are to be distributed to the Finance Committee for approval at the next
meeting.
Mr. Brophy, outgoing President, expressed his appreciation to those
present for their considerable efforts, guidance and direction during
the term of his presidency. The meeting was turned over to the incoming
President, Mr. St. Pierre, who welcomed the new Trustee, Mrs. Sullivan,
and said he looked forward to working together with both old and new
Trustees.
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There being no futher business, the meeting was adjourned at 8:30.
Respectfully s t�,�_tt , APPROVED: