Community Memorial Hospital Stays Open…for now

PICTURE: The CMH governing board sits to the left of president Kermit Riehle and CEO Roy Davis.

Like swirling leaves in autumn, such has been the last few months with many rumors about the future of a local hospital. Most are not entirely true, but all seem to have some basis in reality. A grim picture was painted, but with hope, at the Community Memorial Hospital meeting that took place with the community of Hicksville and the surrounding residents on Wednesday, December 6. The community found what was true and what was not. The current CEO, Roy Davis, was introduced by Board of Governors president, Kermit Riehle. Davis came to the struggling community-owned healthcare facility in December of 2021 only to find what appears to be past malfeasance. In February of 2022, a box was found with affidavits and other legal requests that were never presented to the board.

Employees, doctors, and community persons were there to question the actions of past executives and the board for their decisions that led the hospital to financial dereliction.

Explaining the financial position, Davis told of the current debt burdens, including fines of $25 million to an insurance company due to a scam that has shuttered numerous hospitals (47 so far) and OPERS (Ohio Public Employee Retirement funds) in the range of $17+ million. A billing system called Meditech, implemented several years ago, has cost the hospital significantly – in the range of the hospital only receiving $0.50 on every dollar billed, and has been broken on numerous occasions. There were other penalties and fines mentioned that have also hurt the hospital credit and bond holders. To be fair to the more recent past, it was stated that the last twenty years have not been “in the black”.

The hospital had reached out to see if other medical groups might be interested in acquisition and one was in the process until their attorneys recommended against because of the OPERS liability. 

The positive side of things is that the hospital board has recognized the problems and has made major cuts. Many of the fines have been paid but there are more and the hospital credit has been severely hurt. The staff made it clear they like working at the hospital and very much appreciate what Roy has been doing for the hospital by becoming more transparent to the employees and community. The Family Health Center offices in Harlan, Edgerton, and Antwerp will continue to remain open. Finally, the hospital will continue to be able to offer surgeries through Dr. Grothaus and Promedica.

There were many questions asked concerning the future of the hospital and Davis confirmed to the employees that if the hospital were to close, they are required to give a 90 day notice to the employees. 

Davis also stated that they will have letters to sign and ready for the people to send to politicians to help get support for the community hospital. He stated that the return to viability begins with becoming transparent with everything. Then, to identify and work on fixing the problems that are causing the the hospital to not get the payments due, including increasing the amounts that Medicare/medicaid and insurance will pay for prescribed procedures. Next is to pay back bonds and debts so their credit rating can increase once again. 

Community Memorial has a long history of serving Hicksville, Defiance County, and surrounding counties. Being a $30 million dollar business, which is quite large for a small town like Hicksville. It would be wise to pray for the hospital, employees and the board to help in this time where many hospitals are struggling.

The entire video of the meeting is on the West Bend News youtube channel.