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MESSAGE FROM Greetings from the Eastern Plumas Health Care Medical Staff. I can honestly say that the present Medical Staff at EPHC are the most highly qualified, talented and bright collection of professionals we have ever assembled in over 19 years. I have always been proud to work at EPHC (even during tough and lean times), and I invite you to come to our facilities in Portola or Graeagle. I think you will like what you find. Healthcare is a complex and constantly changing endeavor. Finding reliable and trustworthy medical personnel can be a daunting and frustrating prospect. We are determined to earn your confidence. Thus, I extend to you a warm invitation to avail yourselves of the valuable community resource you have at EPHC. Christopher Stanton MD, Chief of Staff
EMPLOYEE OF Every December a EPHC employee is honored by their peers as the Employee of the Year. The selection is based upon dedication, attendance, enthusiasm, and customer service. Jodi Benson was selected from twenty-one employees who were nominated by the staff. Charles Guenther, CEO praised the entire EPHC staff saying, “We have a truly outstanding staff of dedicated, hard-working and congenial people here.”
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AUXILIARY GIFTS THAT KEEP ON GIVING Once again the EPHC Auxiliary has made a substantial contribution to Eastern Plumas Health Care with the gift of more than $36,000 in medical equipment for the hospital and clinics. The Auxiliary has served the patients of the hospital in Portola for more than 40 years. They have given more than a million dollars for equipment purchases in that time. The Auxiliary raises money for patient services and new equipment for the hospital and the clinics. Their major fund-raising operation is the Nifty Thrifty, on Commercial Street in Portola, selling second-hand clothing and merchandise. In December, they were able to purchase the following equipment from the “wish list” prepared by the EPHC staff. The hospital received instruments for laparoscopic surgery ($3,000) and a mammography viewer ($3,850). The paramedics and ambulance service received a portable suction unit and case ($594) and a data scope ($3,827). And for the clinics, they received a procedure room exam table ($6,975), a patient monitor for cardiac monitoring ($8,000), a colposcope ($5,355), several thermometers ($550), a compressor for respiratory treatments ($85), a cryotherapy gun ($900), and a urine analyzer ($2,500). In thanking the Auxiliary for their continuing support, Charles Guenther, CEO, said, “ the EPHC Auxiliary has once again demonstrated why they have been a crucial part of this organization for over 40 years.” CONGRESS ACTS TO HELP STABILIZE RURAL HOSPITALS In 1997, Congress and the White House were projecting that the Medicare Hospital Insurance Trust Fund would be bankrupt by 2002 unless action was taken to cut costs. Congress responded with the Balanced Budget Act of 1997. BBA, as it is known, was intended to cut $116 billion from Medicare spending between 1998 and 2002. More than $50 billion was to come from reduced payments to hospitals. The intent was to save the Medicare program, but the cuts were so deep that they ended up threatening the very survival of hospitals and health systems across the country. Rural hospitals were especially hard hit and EPHC was no exception. To make things even worse, BBA came along just as EPHC was struggling to emerge from its own bankruptcy in 1995. Instead of cutting $116 billion as intended, BBA had actually reduced payments to hospitals, doctors and home health agencies by over $220 billion at of the end of 2000. These unintended cuts have devastated hospitals across the country. In 1999, Congress restored $17 billion in funding which was helpful, but not nearly enough. Over the last year, the hospital associations, aided by the U.S. Chamber of Commerce and the Merchants and Manufacturers Association, undertook a public education effort designed to encourage Congress to restore BBA funding. In early December, a small group of hospital representatives from around the country met in Washington, D.C. in a final effort to convince Congress to act. Charles Guenther, Chief Executive Officer of EPHC, was a member of this task force. Just before the Christmas holidays, Congress and President Clinton reached agreement on what is called the “Benefits Improvement and Stabilization Act”. This act will restore $37 billion dollars in Medicare cuts, a good share of which will benefit rural hospitals and home health programs such as ours. And as the only Critical Access Hospital currently certified in California, EPHC will receive additional benefits under the new Act. While not a panacea, these changes are expected to help EPHC return to profitability in the current fiscal year. NEW HOSPITAL WING NEARS COMPLETION
The new wing includes an additional 15 beds with a combination of private and semiprivate rooms, an additional nurse’s station, two patient dining rooms, activity room, library, office and a nurse’s lounge. On the first floor, there is space for expanded physical therapy services, mechanical equipment and storage. Also, there is access from the first floor to the “restorative garden” immediately adjacent to the new wing. The project boasts Portola’s first commercial elevator, providing access from the patient care areas on the second floor to the therapy rooms and storage on the first floor. Another part of the project is a new central plant that is expected to meet the needs of a growing hospital for at least the next twenty years. The existing hospital and new wing are heated and cooled through industrial style heat exchangers that rely on hot and cold water. The new plant includes additional boiler capacity, a high capacity chiller and a new 350KW diesel electric generator for emergency power. NEW EMERGENCY RADIO SPEEDS CARE
AFTER FOUR PROFITABLE YEARS, EPHC POSTS A BIG LOSS As expected, EPHC’s efforts to recover from its past financial problems suffered a significant setback as a result of the Balanced Budget Act of 1997. Operating margins declined in 1998 and 1999, but turned seriously negative in the 1999-2000 fiscal year, which ended June 30. The district’s independent auditor has now finished his audit for the year and reports that expenses exceeded revenues for the year by $439,769. Losses would have been even higher, had it not been for the layoffs and other aggressive cost cutting that was implemented after the failure of the district’s supplemental tax proposal in November of 1999. “Expenses exceeded Jeri Nelson, EPHC’s Chief Financial Officer, reported that gross revenues increased over the prior year by 5% to $13,707,403. However, due to cuts in government reimbursement, net revenue after bad debt, government and insurance contractual adjustments, increased by only 2% to $8,717,307. Expenses increased significantly due to more patients being treated, additional regulatory requirements, higher worker’s compensation premiums and legal fees associated with the District’s lawsuit against Brim Healthcare, which has since been settled. “While we did better than many hospitals in the wake of the Balanced Budget Act, there’s no doubt that the last year was a significant setback for us,” said Charles Guenther, EPHC’s Chief Executive Officer. “The fact that we were profitable for four years and then gave back half of those gains in just twelve months demonstrates how fragile our finances continue to be.” But Guenther is optimistic about the future and predicts that EPHC will return to profitability in the current fiscal year. “I think we’re entering a period of relative financial stability that will allow us to continue to expand and improve services to the communities we serve”, said Guenther. LOCAL HOSPITALS DISCUSS POSSIBLE MERGER EPHC and representatives of the Sierra Valley District Hospital (SVDH) in Loyalton have had preliminary discussions regarding a possible joint operating arrangement. The Loyalton hospital, which has been without a full-time administrator since last summer, is questioning its ability to continue to operate as a freestanding facility. Preliminary analysis suggests that both hospital districts could operate more efficiently by sharing the cost of administrative resources and staff. For example, both facilities could gain hundreds of thousands of dollars in savings by sharing one computer system, one billing office, one administrative team and certain clinical resources. It also seems likely that by working together, medical services could be better coordinated for the entire region. A detailed plan is being developed by a joint committee to serve as a basis for further discussion and decision making. Aggie Keese and Don Donato represent EPHC’s Board on the planning committee, while Don Bowling and Sandy Crippen represent SVDH’s Board. Charles Guenther, EPHC’s Chief Executive Officer is coordinating the planning process. The committee is also being assisted by the health care consulting firm of Clark, Lowry and Koortbojian and health care attorney Cathy Salenko. THANKS TO EASTERN PLUMAS HOSPITAL AND EVERYONE WHO HELPED ME
Shortly after my accident a group of volunteers arrived in an ambulance and a fire truck who made my condition safe and transported Henry and I to the Eastern Plumas Hospital in Portola. From the moment I arrived in the emergency room until I left the hospital, every single person treated me as if I were the most important patient in the world. They provided me with a level of treatment and care as good, if not better, than I could have received in the Sacramento area, where I reside. As for Henry, one of my nurses summoned a veterinarian who came out on a cold Saturday night to examine and treat him. The veterinarian even left and then returned so he could bring Henry medication which he needs to control seizures. When I was ready to leave the hospital, I learned that the emergency room doctor who lives in Sacramento stayed in town an extra night missing his mother’s birthday party so he could personally drive Henry and I home to my wife. This is not a movie from the 1930s - this is my story about the hospital staff and others whom the residents of your area are blessed with. Henry and I are thankful for their extraordinary professionalism, love and commitment. We will always be grateful to them beyond measure. Everyone in your community should be very proud. |
Construction on the new hospital wing is moving toward completion with occupancy anticipated this spring. Originally planned for the early 1990’s, the building fell victim to the Hospital District’s financial problems during that era. Updated and expanded plans were re-approved by the state’s Office of Statewide Health Planning and Development in 1999. Construction began in the fall of 1999. Construction financing for the $3.6 million project is being provided by Plumas Bank and the USDA Rural Development Agency. 
Eastern Plumas Health Care recently installed a new emergency communications center in the hospital through a generous grant from the Sierra Health Foundation. The unit is capable of monitoring all frequencies in Plumas County as well as Reno, Nevada, has a built in timer mechanism and two recording decks. EMTs can complete their reports from the recorded transmissions, thereby reducing time spent in the field and getting the patient to the hospital faster. All nursing staff involved with ambulance dispatch received advanced training in the use of the equipment. Pam Ihrig, Emergency Services Manager, noted, “EPHC is very grateful for the assistance from the Sierra Health Foundation in bringing this important emergency communications upgrade to Eastern Plumas County.” 
Early in the morning on Saturday, December 9, 2000, I was driving my vehicle on highway 89 when I hit a large patch of “black ice,” which caused me to lose control of my vehicle. My vehicle went up a large embankment and rolled over twice. No one was with me except for my dog, Henry.