Who knew what and when???
We will probably never know the whole story related to Floyd's financial situation. As questions continually arise about who knew what and when the problems were known, we seem to be getting the “run-around”.
But if one looks to what has been reported in just the past year, there are some interesting questions and coincidences.
Looking at just two articles published locally; one from August of 2006 and one from February of 2007, we see some similarities. The number being quoted is not only similar, it is the exact same figure.
2006 article: Clark, Floyd County hospitals maintain "community" partnership
“Elaine Hayes, director of finance for Floyd Memorial, said the hospital provided $11.5 million last year in uncompensated care.”
2007 article: The News and Tribune - Floyd Memorial's bad debt rising
“Many patient bills from 2006 haven’t been collected yet, Miles said. The hospital always maintains a reserve fund to cover bad debt, but with Medicaid and insurance contributions dropping in some cases and with more patients who can’t pay anything, the hospital needs to add another $11.5 million to that fund.”
So the question still remains as to how long these problems have been known and why it has taken so long to address them and hold people accountable.
Further delays in rectifying the real problems jeopardize the future success of Floyd as well as its employees.
Let’s get the facts out and the cover-up unveiled so that the people responsible can be held accountable.
But if one looks to what has been reported in just the past year, there are some interesting questions and coincidences.
Looking at just two articles published locally; one from August of 2006 and one from February of 2007, we see some similarities. The number being quoted is not only similar, it is the exact same figure.
2006 article: Clark, Floyd County hospitals maintain "community" partnership
“Elaine Hayes, director of finance for Floyd Memorial, said the hospital provided $11.5 million last year in uncompensated care.”
2007 article: The News and Tribune - Floyd Memorial's bad debt rising
“Many patient bills from 2006 haven’t been collected yet, Miles said. The hospital always maintains a reserve fund to cover bad debt, but with Medicaid and insurance contributions dropping in some cases and with more patients who can’t pay anything, the hospital needs to add another $11.5 million to that fund.”
So the question still remains as to how long these problems have been known and why it has taken so long to address them and hold people accountable.
Further delays in rectifying the real problems jeopardize the future success of Floyd as well as its employees.
Let’s get the facts out and the cover-up unveiled so that the people responsible can be held accountable.
posted by Anonymous at 6:08 AM
24 Comments:
Regarding: "Let’s get the facts out and the cover-up unveiled so that the people responsible can be held accountable."
Declaring that there is a cover-up is a very serious charge. What is your proof?
Could you elaborate on your comment that "Further delays in rectifying the real problems jeopardize the future success of Floyd as well as its employees."
Does this mean that you think the current board is not acting with appropriate speed and professionalism? According to what I have read here, they are engaging an outside audit firm to determine the exact scope of the problem. I would assume that such an audit will also suggest how the problem developed and over what period. What else should they be doing?
I would add that with regard to "accountability" the CFO lost his job. If the CEO or board was engaged in a "cover-up" wouldn't they have tried to prop up the situation instead of dealing with it directly?
In my opinion, the current chairman is doing an excellent job thus far.
I have told him personally that the speed of which things are happening is slower than I would like especially since I have voiced the concerns for well over 2 years. That is the real frustration.
The CFO lost his job supposedly before this problem was announced.
Surely most people with common sense would understand that in an organization of this size and magnitude, the CFO could not have been the only person who was aware of the problems.
If that is the case, there are even deeper problems.
If we cannot turn things around and begin building programs and increasing revenue, we will never be able to pay for the debt we have incurred.
Cost cutting and staff reduction can only go so far. It becomes a downhill spiral if you cut too much.
There needs to be a new vision. The old one is not working and it has been evident to most people willing to open their eyes.
It appears we have several on the Board who are opening their eyes.
This is reassuring.
"Surely most people with common sense would understand that in an organization of this size and magnitude, the CFO could not have been the only person who was aware of the problems."
Based on what? This is pure speculation on your part. If there was any proof at all for your charges, immediate termination would have been called for. As to your "voiced concerns" over the past two years, I don't recall that you ever suggested that there were large uncollectables out there. Why should your repeated attempts to get the CEO (whom you don't like personally)fired have any bearing on this situation. If you have proof that he was engaged in a cover-up you should produce it. Otherwise your charges are unwarranted and shameful.
There has been ample information brought up in meetings and the minutes as well as the "dashboard" reports have shown the declining trend.
Board members continually voiced the concerns and were continually given answers that were misleading at best.
$11.5 million dollars worth of misleading.
So who, specifically, are you accusing of a cover-up? You want fast action so name names. Oh...and list your proof along with the name(s) so you can avoid any risk of getting sued for defamation.
Anonymous 1:26 makes a good point HB. You are calling for action but you aren't being very specific.
Are you trying to railroad someone or do you have the goods?
You also seem to be up to your old method of dealing with anyone who disagrees with you. Saying: "Surely most people with common sense..." So, if I disagree with you, you know for a fact that I don't have commone sense? Seems like a big assumption.
If it looks like a duck, walks like a duck, and quacks like a duck...
Well, HB, you have me totally confused by your position (or positions). You appear to be saying that someone (or many someones)in leadership roles should be held "accountable" (I assume you mean dismissed)for the current financial problems. And about the board chairman, you say above,
"In my opinion, the current chairman is doing an excellent job thus far."
How does this square with the Chairman's Corner message currently posted on the hospital website which includes the following comments:
"I am astounded by the dedication and commitment of Floyd Memorial's management and staff." and
"Finally, I would like to say that I am wholly confident that management will continue to ensure a strong financial output. Our volumes are up and constantly growing, and there are many positive trends. I have full confidence that Floyd Memorial will remain a financially strong not-for-profit organization."
Do you believe what he is saying? If not, does he lack common sense or what?
the marketing people write these things and the chairman just signs off.
As HB stated in a previous post, the chairman is supposed to make the hospital look good to the public.
This is typical word manipulation.
My daddy always said there is no such thing as a coincidence.
The $11.5 million dollar number showing up months apart is much more likely to prove there is a bigger problem and one that has been known for a longer period of time.
I agree with anonymous 3:33. It's a duck
What is the status of the CFO? Is the board or administration going to hire someone? IF the problems are primarily financial, should'nt hiring a CFO be a top priority? It will take a seasoned professional CFO well versed in healthcare finance to be able to lead the charge to advise and correct this situation.
If the financial situation is dire, what is the hold up?
So Healthblogger, in your comparison you show a past statement by Elaine Hayes, the current interim CFO and Finance Director stating the the uncompensated care was 11.5 Million. So are you saying that Both the ex CFO and Elaine Hayes were aware of this issue long before now?
Some of you people are just like members of the prior Board.
You continually want to demonize HB rather than address the obvious problems.
I'd say there is more than just coincidence in these numbers.
Your hatred of HB is getting really tiresome.
Address the issues or go back to your condo in Florida or your house on the hill.
Take some resonsibility and quit acting as if nothing is wrong. Wasn't the previous chairman a bank president? Is there no accountability on him while all this transpired?
Yes Floyd is stlll the best place to work,if you do not like it here just leave.The sooner the better
None of us can do a dang thing about what is going on because we do not have all the facts with the financials of Floyd. I am a long timer; have obstacles beyond my control; see and hear of wrong doings on a daily basis; used to observe the back stabbing power struggle amongst the "named leaders" and chose long ago to ignore the games, favoritism, and politics in that place because the bottom line is I need the job and just force myself in each day and try to put a fake smile on my face and display the role of a positive employee while I perform the job I am paid for to the best of my ability. I have noticed the leaders are all doing the same. Some are almost robotic probably because they are scared of being the next one to go since salaried "exempt" employees can be dismissed without a reason. How sad. Such is life eh?
I can't help feeling sorry for employees who have been seduced by HB's desire to get rid of the CEO. If the CEO goes, HB will be happy because he doesn't like him and has made it his goal to see that he is gone. But what about all the employees in the hospital? Will a new CEO cause pay to increase? Staffing levels to increase? Reimbursements to increase? Just what is it that will change in their lives. The answer is probably nothing good and, most likely, they will see things tighten up even further. If the CEO is replaced, the board is likely to look for a person with a strong financial management background. Those kind of folks are belt tighteners, not lavish spenders. Employees should talk to their peers in other hospitals in this region and they will find that staff in those facilities face exactly the same daily challenges as do the folks at Floyd. A new CEO might make HB happy...for a short while--he isn't made to be a happy person. But for hospital employees, it is hard to imagine a scenario that will be any better for them. And it is VERY easy to imagine multiple scenarios that could be much more challenging. Be very careful what you wish for.
Be careful what you wish for....indeed. Mike Harlowe would be a dream for some but a nightmare for some of those Directors. Think for a moment, he was a previous VP, Bryant his mentor, pride and joy; his Daddy a doc from long ago, his Dad's partner the liason for the medical staff..........wow.........the noted micromanager before Bryant......and a possible replacement?? He was pretty darn nice.
A new CEO would make a whole lot of people happy.
HB is just one of a few willing to publicly state it.
We are at a point of no return. If this CEO isn't replaced, Floyd will fail.
But maybe that is the goal for some people.
Address the issues. How do you account for these numbers.
HB has an excellent question.
Who knew what and when?????
This is absolute nonsense:
"We are at a point of no return. If this CEO isn't replaced, Floyd will fail."
How many years has the current CEO been in charge? Get a grip!
RE: HB "isn't made to be a happy person."
Unfortunately, there couldn't be a truer statement. Hence the obsession with pointing fingers instead of working toward positive solutions, and the persistent refusal to outline specific (and reasonable) solutions when asked.
Let's get a grip here people.
The administration and ultimately the CEO (not the CFO) is responsible for the accuracy of the financial statements. There is no presumption of innocence to hide behind - this is not a criminal proceeding. The burden of proof is now on the administration to explain what happened, explain what has been done about it, and illustrate why it will not again happen in the future. Financial reporting is not a 50/50 propostion - hey, the financials may be right, they may be wrong. It takes quite a bit more to restore trust and credibility at this point.
If the direction Floyd is on is wrong, you replace the CEO. The new CEO implements his/her plan using their knowledge, experience, skill and judgment. That's what a professional hospital administrator does. Neither HB or any of us can design a plan for Floyd on a web blog -- it is no where near that simple.
I am an employee who began working at Floyd right after Mr. White took over as CEO. I heard the horror stories about the previous administration. They say that history repeats itself and I am now hearing some of the same stories about the current administration.
I have worked at Floyd for twenty years and have seen a steady decline in employee morale. Many employees feel like they are being lied to; or at the very least not informed of what is going on. It's scarey when you hear months later that parts of the hospital have been sold off like the occupational health department, or that the mammography center at Highlander Point is closing.
I think it is time to start looking for a new CEO.
Has anyone heard which accounting firm is doing the 90 day audit? I am sure the result will be very interesting.
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