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orthopedics, abdominal transplant ICU, and rehab spaces. With the opening of Pavilion A,
Chandler Hospital will have a potential maximum capacity for 568 beds, including 98 critical
care beds.
There are still a number of remaining elements of Phase I that have yet to be completed
and will come on line in planned phases. Into the future, the construction phases under
prioritized consideration include the need for 24 additional ICU beds, complete privatization of
all rooms, and the redesign and modemization of equipment for a new kitchen.
The project is still under budget.
Mr. Sergio Melgar presented the financial report comparing the balance sheet at January
in fiscal year 2011 with fiscal year 2010. Cash decreased $117.7 million. The $51.3 million
balance is $30 million lower than the December 31, 2010 balance. The decrease from 2010 is
due to the use of cash reserves for the remainder of Phase I-A ofthe Patient Care Facility
Proj ect. Accounts receivable have decreased by $1 million compared to last year, or $103.5
million versus $104.5 million, and net patient service revenue increased $27.5 million. The
value of board-designated investments now totals $203.6 million, which is a $24.5 million
increase from January of last year. Net capital assets have increased $134.7 million due to the
planning for the patient care towers, the groundwork on the new site, and the construction of the
patient care facility. Accounts payable have decreased $3.6 million, net assets have increased to
$616.6 million from January 2010, and total assets are at $1.2 billion. UK hospital system
posted an operating profit of $1.2 million in January. Year-to-date income from operations is
$18.4 million, which is $5.8 million less than budget and $8.1 million less than the prior year.
There is continued concem about an increasing volume of bad debt, which is almost twice what
it was last year. Current month investment income is $2.6 million, and year-to-date investment
income is $28.9 million.
Mr. Melgar also gave a very brief financial overview for the months of February and
March, which have not quite closed yet. Overall, volumes are up. February was a break-even
month, and for the quarter, the numbers are fairly positive compared to last year, where the
system lost money.
Dr. Richard Lofgren presented a UK HealthCare Enterprise perfonnance update,
reporting that quality and outcome scores continue to be strong. Patient satisfaction has
improved in the last quarter. The efficiency metrics are near target, with the increase in labor
costs reflecting the combined effects of seasonality and preparation for the opening ofthe new
facilities. Compliance with Medicare 4 measures is strong. However, a handful of specific
metrics are still commanding some special attention. The stroke unit received the gold plus
recognition from the American Heart and Stroke Associations for its perfonnance on stroke
guidelines. And finally, mortality scores have declined significantly for the past six months, as
have nursing vacancy and tumover rates.
The committee had two action items. Dr. Kevin Nelson presented for approval the
privileges and credentials for Chandler and Good Samaritan Hospitals. The committee made a
motion, and all privileges and credentials were approved. Upon the recommendation ofthe