Finances for New Trustees
Mike Herrick, a partner with the Kansas City office of Arthur Andersen, will explain what every hospital trustee needs to know about hospital finances – a must for all governing board members.

The role of trustees in today's healthcare environment requires a level of understanding of the organization's financial statements which will enable them to make informed decisions, maintain marketshare, monitor risk and improve overall financial viability. 

The session will include the unique financial lexicon, an explanation of financial statements, financial responsibilities of trustees, how to recognize early warning signals of financial disaster, and how to monitor financial performance.

Tour of Baptist Health Baptist Memorial Medical Center
Baptist Health Baptist Memorial Medical Center in North Little Rock is Arkansas' newest acute care facility. The new medical center focuses on wellness, preventive and health education; increased outpatient services; greater access to facilities and services; and patient-centered services.

Seminar participants will hear a short description of the facility, then board buses to travel the 20-minute distance to the hospital. Tours will be conducted by hospital CEO Harrison Dean and administrative staff.

AAHT Slate of Officers
The AAHT nominating committee proposes the following slate of officers for 2000-2002 (to take office May 19):

President – Ray Kordsmeier, Conway

President-elect – Lathan Hairston, Warren

Secretary-Treasurer – Peggy Talkington, Russellville

Past-President – John Collier, Wynne

Arkansas Valley – Peggy Talkington, Russellville

Metropolitan – Ray Kordsmeier, Conway

North Central – Karen Clark, Mountain Home

Northeast – Alan Patteson, Jonesboro

Northwest – Rob Brothers, Rogers

Southeast – Lathan Hairston, Warren

Southwest – Steve Smart, El Dorado

The slate of officers will be voted on at the May 19 business meeting.

Y2K vs. HIPPA
Now that your hospital has successfully survived Y2K, which, thankfully, was a nonevent for healthcare organizations, what's next? HIPPA!

HIPPA (the Health Insurance Portability and Accountability Act of 1996) mandated regulations that govern privacy, security, and administrative simplification standards for healthcare information. 

Several proposed and final regulations to the mammoth act are expected this year. They will require major changes in how healthcare organizations handle all facets of information management, including reimbursement, coding, security and patient records.

It is projected that the cost of complying with HIPPA will greatly exceed the cost of preparing for Y2K — all at a time when hospitals are battling the effects of the Balanced Budget Act of 1997.

The American Hospital Association is very concerned about the privacy of health information, which is just one portion of the HIPPA. In a letter to Secretary of Health and Human Services Donna Shalala, the AHA says hospitals "take their responsibility to protect patient confidentiality very seriously and are conscientious about implementing internal policies and practices designed to ensure such confidentiality."

The "prescriptive nature" of the standards will require hospitals to undergo very costly measures by rewriting standards, training staff, renegotiate contracts, and put into place comprehensive systems to track all uses and disclosures of information.

The Arkansas Hospital Association will host a series of educational sessions about HIPAA, the first of which took place March 15. Three AudioNet conferences are planned for June 1, 8, and 21. Call Beth Ingram at 501-224-7878 for information about these telephone/Internet conferences.

AHA Committee on Governance
Trustees have a voice unlike any other.

First, while trustees bring many personal experiences and professional strengths to the board, they are usually asked to serve their hospitals because of the leadership positions they already have in their communities. This gives trustees superior access to elected officials.

Second, trustees are usually volunteers. They give their time and energy to serve the best interests of their organization's communities and patients, not their own.

Third, as established and successful community leaders, trustees are often better equipped than others to attract financial resources.

This unique combination of powerful connections, broad interests, and financial wherewithal makes trustees uniquely effective when it comes to political advocacy.

Your community needs your help in the political arena now more than ever. In order to survive financially, many hospitals are eliminating community health programs, reducing services, and downsizing capacity. And the worst is yet to come unless you do something about it.

Sixty percent of hospitals expect to lose money on Medicare by 2004. This year's cuts in Medicare payments to hospitals, resulting from the BBA, will result in suffering for increasing numbers of people.

The American Hospital Association's Committee on Governance is making political advocacy its primary job this year. To make your voice heard, contact your state hospital association.

You can also get information from the AHA at 877-4-BBA-FIX, or at www.aha.org/grassroots.

Reprinted from Trustee, March 2000