PRESS RELEASES

Contact: Jeff Teal
Phone: 509.773.1009
Email: jteal@kvhealth.net

8/20/08: KVH Board Meeting

The Board of Commissioners of Klickitat Valley Health held their regular meeting on 8/20/08. Discussion included Board membership, nursing recruitment and retention, and the performance improvement program. The Board accepted the resignation of Bill Martin as a Board member. Bill notified the Board that the time expectations for Board activities were more than he was able to continue doing. Ron Ihrig, Board President, said " I am sorry that Bill can not continue on the Board. We valued his contribution to the Board. The process for appointing another Board member has been discussed and we will be requesting applications from interested persons."

Marybeth O’Brien, Director of Nursing Services at KVH hospital, presented a nursing recruitment and retention plan for Board approval. The plan is titled "Home Town Nursing" and it includes components addressing compensation and working conditions, education and marketing, and involvement with the community. Marybeth O’Brien reported that KVH has recently hired three additional nurses from the Goldendale community, which will reduce the reliance on temporary or agency nurses.

This was the first Board meeting with a public session report on the performance improvement program. Approximately 15 minutes of every regular Board meeting will now feature a report on some of the performance improvement projects at KVH. There are over 50 current projects that address improving the efficiency and effectiveness of care or customer service. The Performance Improvement Team awards for the first half of 2008 were awarded to Housekeeping for customer service and to Diagnostic Imaging for efficient and effective care.

8/05/08: KVH Hires Interim CFO

Mark Wishard will be starting 08/13/08 as the new Interim Chief Financial Officer for Klickitat Valley Health. Mark has a strong background in healthcare finance including an MBA, CFO experience in larger hospitals, and interim experience in a Critical Access Hospital similar in size to KVH. KVH is in the process of hiring for the regular CFO position and Mark Wishard is expected to fill the interim position until the regular CFO position is filled.

7/10/08: CFO Resignation

Wade Sturgeon, Chief Financial Officer at Klickitat Valley Health since January 2005, has resigned to pursue other opportunities. During his tenure, Mr. Sturgeon was a driving force in the significant growth and increased financial strength of KVH. His last day at KVH will be Friday July 11. Efforts are underway to appoint a full time replacement.

On July 7, 2008 the Klickitat Valley Health Board of Commissioners voted to proceed on its own without a management contract. The impact of the decision is that KVH will not renew a contract with Brim Healthcare for management services in July 2009. KVH will then directly employ a CEO that reports solely to the Board, and additional specialty consultation will be arranged as needed. Under the terms of the current contract between KVH and Brim there will be an orderly transition including a Brim interim CEO and continued consultation with fiscal and clinical resources.

About 35 persons watched as the Board heard additional information from Brim and KVH staff and then discussed the advantages and disadvantages of a continued management contract with Brim. Board President Ron Ihrig said "This is not about whether Brim did a good job for KVH. They did what they said they would do. This is about whether we are ready to be on our own to keep moving ahead." Commissioner Bill Martin said "Health care is a complicated business in an increasingly complicated business world. A professional management team like Brim is important for continued success." The 3-2 split vote indicates the complexity of the issues. After the decision was made there was a consensus agreement to place the transition and CEO recruitment process on the agenda for the 7/16/08 regular Board meeting.

6/10/08: Board Meeting on Brim Management Contract

The Klickitat Valley Health Board of Commissioners held a special meeting on 6/9/08 to review issues relevant to the management contract with Brim Healthcare. Steve Kinder, Vice President with Brim Healthcare, made a presentation about the changes that have occurred since the first KVH/Brim management contract was effective about 4 years ago. An audience of about 25 persons, several KVH management staff, and the Board then asked questions about the performance of KVH under Brim management. Comments and questions included issues such as services provided by Brim, alternative management contract options, obstetric services, audit findings, and CEO selection/retention. The Board has at least one more special meeting to review Brim issues planned for 5 PM 6/18/08 at the Grange Hall.

Last week there was a large scale three day disaster preparedness exercise that involved the hospitals and public health departments of the five Washington counties in Region 8 Public Health Emergency Preparedness and Response Disaster. The exercise scenario involved a world wide flu epidemic (named the Bugga Boo Flu for the exercise) with approximately 25% of the population in Klickitat County contracting the flu. In the exercise, about 18% of the population needed emergency medical treatment, and about .3% needed inpatient treatment. Klickitat County Public Health Department and Klickitat Valley Health were involved locally. Kevin Barry, Director of Klickitat County Public Health Department, said "The Health Department fully supports the opportunity to collaborate with our health systems throughout the county. Engaging in processes that ensure effective communication strengthen our ability to provide support to Klickitat Valley Health and our first responder agencies in the event of an emergency."

In the scenario the numbers of persons who needed medical care greatly exceeded the normal capacity of the health care system. The purpose of the exercise was to identify the ways that public health and hospitals can best meet the increased demands by working collaboratively. Examples of exercise activities included a 24/7 telephone information resource by public health, additional supplies and staffing at the hospital, and use of cots and heated tents at the hospital. John Rohrer, KVH CEO, said "I was really impressed with the enthusiasm and expertise shown by staff. If this had been the real thing KVH would be ready."

This was the first regular Board meeting since the appointment of two additional members, which increased the membership to five persons. Business items included approval of the transfer of a surplus ambulance vehicle to Fire Protection District 12; a special meeting at 5:30 PM on 4/21/08 for review of Bylaws and to consider Board committee assignments; and a 4 PM 5/19/08 special meeting to review the management contract with Brim Healthcare. There were special reports about changing the zoning of all KVH land to Medical Center; and ambulance staff issues. There was one comment from the public advocating for the audio recording of meetings. The Commissioners commended the Home Health and Hospice programs for having zero deficiencies in surveys from the State.

Regular reports were presented, discussed, and approved on a number of topics:
• Financial data indicates a small positive operating margin for 2008
• Two new registered nurses have been hired in the past month
• Nine of the new hospital beds purchased will be replaced under warranty
• Laboratory services recently passed their State survey
• Statistics for staffing changes show less turnover in the last quarter
• Remodeling projects are on target
• 28 procedures have been completed since the surgery department
  re-opened with the new humidity control system

The Washington State Hospital Association recently released patient satisfaction ratings for selected hospitals in Washington and Klickitat Valley Health data was not included. The Hospital Association ratings are based on patient satisfaction surveys that are now sent out to patients at most hospitals nationwide. Hospital participation with the surveys is voluntary for Critical Access Hospitals like KVH, and KVH chose to use the surveys starting in 2007. The ratings that have been recently released did not include KVH because the reporting period also included 2006 data. When patient satisfaction ratings are released the next time KVH will be included.

KVH sends a patient satisfaction survey to almost all inpatients and to about 10% of all Emergency Department patients. The patient satisfaction ratings are used to help focus improvement efforts. KVH is working on a report about patient satisfaction and quality of care that will be available to the public later this year.

Klickitat Valley Health Board President Ron Ihrig announced that two persons were selected, appointed, and sworn in as KVH Commissioners at a special Board meeting on 3/24/08. Bill Martin and Michael Macy were appointed by the Board to fill the vacancies created when the number of commissioners was expanded from three to five in the February special election. The appointments are effective through the general election in November, 2009.

Ihrig said “I want to thank all of the applicants for their interest in serving the community. We had 12 good people to select from and they all had experience that could make a positive impact on KVH. Now that we have a five person Board we will proceed with evaluating our current status, determining the direction and focus for changes, and deciding on the best management structure to achieve our goals for healthcare provided by the District.”