NRMC board discusses staff benefits, equipment upgrades

The Nevada Regional Medical Center has saved more than $400,000 on health insurance since switching to a self-pay plan six months ago according to Ronald Dutton, CEO of the employee benefit and consulting service, R.J. Dutton, Inc. Dutton gave his report to the hospital board Tuesday evening during the boards regular monthly meeting. The hospital paid out $827,273 in health care claims compared to an insurance premium cost of $1,246,549 for the same period.

Dutton said that the hospital was the most highly utilized health care provider and said that the way the plan was crafted created incentives for employees to use the facility.

"The plan incentives to use Nevada Regional Medical Center are working," Dutton said. "Dropping the deductible on services provided here helps."

Dutton explained that the plan was administered by FMH Benefit Services, Express Scripts, Inc. is the pharmacy benefit manager and the plan is part of a Preferred Provider Organization network which allows those covered under the plan to get services from a wide variety of providers. The plan is protected from exposure to excessive claims through reinsurance.

There was some confusion at one point when Dutton said that the medical and prescription claims were at 60 percent of the YTD attachment point, the point at which reinsurance would start paying.

Dr. William Turner asked if that meant the hospital had gone through a half a year of the plan but had used 60 percent of the plans funds. Dutton explained that the figure didn't mean that the plan had used 60 percent of the amount that would trigger reinsurance.

"Reinsurers are very conservative when it comes to underwriting these policies," Dutton said. "They take 125 percent of what they believe will be the amount of claims and use that figure as the attachment point. The 60 percent figure is actually relatively low and it is for the six months, not the whole year."

Dutton said he would start working on the figures for the 2008 year and come up with an estimate of what it would take to fund the plan for that year.

"In August I'll begin the process of figuring out the premium equivalent for 2008," Dutton said. "While the figures will undoubtedly go up it should still be quite a bit less than what the cost of insurance was last year."

Hospital CEO Judy Feuquay told the board the hospital had received another award from Avatar International, Inc. for excellent customer service.

"This is the second year in a row the hospital received the award for Exemplary Service - Exceeding Patient Expectations," Feuquay said. "We're so proud of our staff for working so diligently to give their patients the service they need."

Feuquay said that the upgrade to a new computer information system could take up to two years.

She also said the information system would include the telephone system, which until now has been a part of the physical plant responsibilities.

"The information system replacement will take up to two years," Feuquay said. "It means we will have to work to minimize the impact on patients and we will not take on other major changes until it is completed. We're also moving the responsibility for the phone system."

Feuquay updated the board on several projects in various stages of completion during her report.

"The majority of the contracts for the new phone system have now been signed," Feuquay said. "I signed four or five contracts earlier today. The contract with MoDOT has been received and construction can begin. Work is scheduled to begin on the south tower entrance to replace the automatic doors and retile the threshold."

The board voted to purchase an $27,000 automated blood culture system which will be partially paid for with money the hospital foundation raised during the 2007 Caring With Pride Golf Classic.

"This updated equipment will continuously monitor blood cultures to provide the earliest possible detection which will result in better patient care," Feuquay said. "Earlier detection translates to shorter patient stays when appropriate is begun earlier. The unattended system leaves the technologist free to attend to other duties, improving productivity. The proceeds from the NRMC Foundation 2007 golf tournament, approximately $19,000 were designated for this system."

The board is also updating its bylaws, according to a report from board member Glenn Rogers.