Hospital board discuss using CARES Act funds for improvements

DAYTON—Last week, the Hospital District board of commissioners was invited by Commissioner Bob Hutchens to share their thoughts about whether some of the remaining Coronavirus Aid, Relief, and Economic Security Act (CARES Act) funding received by the District should be used for hospital projects and services. Hutchens serves on the District’s Finance committee.

CCHS CEO Shane McGuire explained that any project or service must meet COVID-19 criteria.

Many hospital districts have received CARES Act money, and all are facing reporting requirements, possibly as soon as Aug. of next year. If the funds are not spent, they will need to be returned. Although the hospital District is seemingly “flush” with cash because of that infusion, spending could pose some potential risk for the District’s finances.

McGuire said there is also real possibility vendors and contractors might not get to projects in a timely fashion.

One project the administration has been thinking about is upgrading the hospital power plant.

McGuire said when the generator kicks in for its weekly test, the in-rush exceeds the capability to power equipment and all else in the hospital. To avoid this, the electrical engineer has to delay-start certain systems.

Hospital Controller Tom Meyers and Finance Manager Matt Minor both believe an upgrade to the power plant is a CARES Act defensible project.

“Everything we do is to buy time, but now we are in a situation with the CARES money we could take on a $300,000 plant upgrade,” McGuire said.

McGuire posed the question, “Do we want to be more conservative or less conservative with how much we are holding on to knowing we may just have to give that money back at the end of the day?”

Commission Chair Wes Leid and Commissioners Jim Kime and Colleen Sproul all agreed that it makes sense to spend some of the money for projects which meet the criteria set for CARES Act distribution but to proceed with caution.

Administrator’s report:

McGuire said the District has not returned to business, as usual, due to lower patient volumes in the clinics and the hospital. Six hundred fewer claims have been processed each month since the COVID-19 challenge began.

“If we didn’t have the CARES funding, and other sources, there would be a different discussion at the table. We are very thankful for the position we are in and the work that is being done by the teams around the table.”

Dental office and other projects:

“I do think we have a lot stacked against us to get any of our large projects off the ground this year,” McGuire told the commissioners.

A general contractor administrator told him the outlook for construction this year is poor because of the backlog of projects, high lumber prices, and lack of available workforce.

McGuire said the dental office for Medicaid patients won’t be up and running until the summer of 2021.

The good news is the Washington State Department of Health is providing $86,197 for that project, which will be added to the $250,000 already received from the Washington State legislature

McGuire will be asking the commissioners for additional money for operations.

The commissioners authorized McGuire to rebid the project, looking for a general contractor who will accept the total project, in an amount not to exceed $350,000.00

Plans for the assisted living project and for improving the Med gas/Med air and suction in the hospital will be presented to the board of commissioners at the next board meeting on Sept. 23.