Becker's Hospital Review

24 CFO / FINANCE University of Iowa Health Care to Stop Accepting Checks, Cash July 1 By Alia Paavola E ffective July 1, Iowa City-based University of Iowa Health Care stopped accepting cash or checks for co-payments or oth- er medical expenses, according to The Des Moines Register. The move to "cashless" will help the health sys- tem reduce administrative costs by removing cash-handling expenses. An average of 3 per- cent of payments to UIHC are currently made in cash. "We are always looking at how to reduce ex- penses in ways that do not affect patient care, quality and safety," Tom Moore, a spokesman for UIHC, wrote in an email to The Des Moines Resister. Mr. Moore said similar policies exist at Stanford University and other West Coast facilities. How- ever, UIHC is the first Iowa system to make the change, according to the report. n Louisiana Hospital Overstated Expected Collections by $8.9M, Audit Finds By Alia Paavola M arrero, La.-based West Jefferson Medical Center overes- timated anticipated hospital collections by $8.9 million in 2014 prior to leasing the hospital to a private operator, ac- cording to the New Orleans Advocate, which cited a recent audit by Ernst and Young. Other financial statements produced by the parish-owned medical center were off the mark as well, including the hospital's net position, which was revised downward by $7.4 million. The erroneous 2014 financials were the basis for the terms of a $500 million deal between WJMC and New Orleans, La.-based LCMC Health, the private operator. The audit revealed poor protocols but found no evidence of inten- tional manipulation of the financial statements prior to the lease agreement. "The biggest thing we were looking for was whether there was any sinister activity or intentional under-reporting or anything like that," Chris Roberts, a parish council chairman, told the New Orleans Advo- cate. "I don't see that to be the case." n Change of Plan: Adventist to Close Washington Hospital, Medical Group By Molly Gamble R oseville, Calif.-based Adventist Health called off plans to transfer ownership of its 72-bed Walla Walla (Wash.) Gen- eral Hospital to Providence Health & Services and is instead closed the facility — along with its affiliated home health division and medi- cal group — July 24. Under the agreement Adventist and Rent- on, Wash.-based Providence Health & Ser- vices disclosed in April, Providence would as- sume ownership and operation of Adventist's Walla Walla campus — the hospital, Adventist Health Medical Group and Adventist Health Home Care Services. e proposed transac- tion was not a sale, but a "membership sub- stitution." In exchange for the three entities, Providence agreed to disburse $14 million over 24 years into a special fund for communi- ty health that Adventist would direct. e systems said the handoff was set to close early this summer. On June 19 came word of the very outcome the deal aimed to avoid. Adventist said it encountered "unexpected regulatory challenges" that "could linger for an undetermined duration of time" and pos- sibly block the membership substitution. It informed Providence it was discontinuing ne- gotiations and would instead close the campus. Joyce Newmyer, president of Adventist Health Pacific Northwest Region and board chair of Walla Walla General Hospital, said the closure is "one of the most heart-breaking decisions we have had to make as a company." e system stated that Walla Walla General Hospital has faced financial challenges for the past decade. "Adventist Health has invested more than $68 million into Walla Walla General Hospital during recent years in the hopes of securing its future as a healthcare resource in Walla Walla," said Ms. Newmyer. "We respect the legacy of this hospital, its place in the heart of our community, and the investments we have all made to sustain it for more than a centu- ry. Unfortunately, we must now acknowledge the current healthcare environment creates an unsustainable future for the local hospital." "We are, of course, disappointed and sad- dened by the decision to not continue with the proposed transaction and to close the Adventist facilities in Walla Walla, but un- derstand and accept their decision," Provi- dence stated. Walla Walla General Hospital was founded in 1899 and has more than 400 employees, in- cluding a medical staff of more than 175 cli- nicians. With its closure, Adventist will cease hospital operations in Washington. In June, Adventist said it had positions open at 19 other Adventist Health hospitals in Cal- ifornia and Oregon for employees interested in relocating. Wheatland Village, the retirement center on Adventist's campus in Walla Walla, will re- main open. n

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