December 16, 2003
In a remarkably short meeting, The Watonga Hospital Board was told that November was a little better financially with a loss of $4100 compared to last months loss of $100,000. Through the first 5 months of the fiscal year, the Hospital has a total loss of $169,000. Accounts sent to collection totaled $25,000.

Administrator Brenda Doyel has spent most of her time preparing documents for her testimony in the Quorum lawsuit. She is to make that deposition Friday.

The number of patients in the past month due to the flu bug has caused an increase in the number of nursing hours; but it should be offset by the increased revenue.

Doyel also said she is working to build the Physical Therapy department back up to the level of care it had 3 or 4 years ago and she said the number certainly reflected that.

October 27, 2003
The Watonga Hospital Board heard from Lou Rother during the public comment period of their meeting last night. She expressed regret that the Hospital had not done more to retain Dr. Byron Carpenter whose resignation the Board accepted last night. Board member Dr. Susan Lee hoped Dr,. Carpenter would establish a private practice in Watonga and remain in the community.

The Board spent over an hour in Executive Session last night discussing the pending litigation with Quorum Management Services. The Board voted to continue with their lawsuit alleging mismanagement by Quorum.

Board members decided that attorney Clay Christiansen should begin preparing documents for Chapter 11 Bankruptcy reorganization for the Hospital. The Board said the debt load was one of the reasons the negotiations with the Schuster Group had not progressed toward a long-term lease of the Hospital. But nobody could say whether the reorganization would make Hospital more attractive to Schuster.

There was good news; after the massive layoffs, the Hospital finally showed a $15,000 profit; but unfortunately, that was overridden by another $53,000 bill from Medicare. The notice that the malpractice insurance was going to increase by 82 per cent.

September 22, 2003
Watonga Hospital Board members spent an hour in Executive Session last night before they decided to continue negotiatins with the Schuster Group. They will continue to discuss the written agreement provided by Schuster and continue to keep it confidential. Schuster is proposing a long-term lease leading to purchase of the hospital.

The Board also spent 43 minutes in Executive Session to discuss the contract for Dr. Mohammed Ash-Fack. They will continue negotiations with him also. It was reported that Ash-Fack will be leaving the hospital to work for the Veterans Administration in October and they are hoping to use him for emergency room coverage at Watonga Hospital.

The August financial report was still bleak with the Hospital having a net loss of $43,000 with $27,000 in accounts sent to collection.

The hospital was told they need about $5,000 in upgrades to remain in compliance with the guidelines of a "critical access hospital".

The Board agreed to a contact with Madole & Wagner for the annual audit at a cost of $17,000.

The Contract with Dr. Brent Kourt says he will do "scope" procedures for the hospital and will receive $100 per procedure from the hospital.

August 25, 2003
The Watonga Hospital Board spent over an hour in Executive Session last night and said they would continue negotiations with the Schuster Group for possible lease-purchase of the hospital. Board Chairman Kyle Goerke said they are getting closer to an agreement. If the hospital's Medicare Debt doesn't hold up "due progress". He said the good news is they are still expressing interest in the hospital and are willing to talk.

The bad news is Medicare has not yet sent a proposal to the Department of Justice for any kind of disposition; but they did say if the hospital were to offer a dollar amount, they might be more willing to negotiate a final settlement; but they gave no indicatin how much that amount should be.

Financially, the hospitqal suffered a loss of $33,000 in July with $92,000 in accounts sent to collections and the budget for next year is still not completed.

The Hospital will be participating in a disaster drill September 13 in Canton and they are working on a grant to purchase the protective equipment that will be needed.

The Board authorized Administrator Brenda Doyel to pay the insuranc ein the smallest increments possible beginning with a $15,000 down payment.

August 18, 2003
Watonga Hospital Board members said they would continue negotiations with the Schuster Group who is wanting a long-term lease leading to eventual purchase of the hospital. After a 2-hour executive session, Board Chairman Kyle Goerke said there are several issues that need to be resolved, not the least of which is the $1.4 million dollar debt to Medicare who sent a letter August 5th telling the Board that the matter is to be reviewed by the Department of Justice within 60 days.

However, Goerke also said that Schuster still might be interested in the Hospital even if the debt is not forgiven.

July 27, 2003
After 90 minutes in Executive Session last night, the Watonga Hospital Board gave the Administrator leeway to make staff reductions totaling $43,000 per month. It was unclear how many positions would be cut. The reductions will take place in the next 30 days.

An Executive Session to discuss the pending lease agreement with the Schuster Group was not held. Board members will discuss that in a special meeting, August 11th.

In other business, the Hospital lost $22,000 in June. The accounts sent to collection were $667,000.

The Board also voted to purchase their insurance from Hospital Casualty Company for $89,000 per year; a hefty increase from last year.

June 24, 2003
At their meeting last night, Watonga Hospital Board Members spent nearly 2 hours in Executive Session; but again, there was no action. Chairman Kyle Goerke said the Schuster Group was still interested in a long-term lease of the hospital and they will continue their evaluation of the operation; but for now, no news. Schuster has been sending representatives to different departments in the past weeks and is getting ready to set up their Home Health Office soon.

In other business, the Hospital shows a loss of $12,000 in May despite an influx of $27,000 in sales tax. The loss for the year is $322,000. The Hospital sent $40,000 in account to collection.

Administrator Brenda Doyel said that she and attorney Tom Stephenson had attended a settlement conference concerning the Hospital's lawsuit against Quorum Corporation; but no settlement was reached and the case is set for the December docket.

Doyel also reported that Dr. Ash-Fack is making more visits to the prison without hurting his clinic practice and is generating more revenue for the hospital.

The Hospital may be in line for a $10,000 grant to upgrade their privacy codes; but at the same time, the Hospital may get hit with a 37 per cent increase in their liability insurance, about $26,000. Physician liability may go up as well.

Doyel also reported the Robert Sinclair Memorial Garden has been completed. It was set up with donations to honor the Hospitals groundskeeper who died recently.

May 19, 2003
The Watonga Hospital Board spent an hour and 20 minutes in Executive Session last night discussing the possible lease with the Schuster Group. The Board's only comment was they will continue negotiations.

Board members authorized Chairman Kyle Goerke, newly restored to his position after his military service, to sign an agreement with David Payne and Associates to prepare a plan for Alternatives of settlement with various creditors of the Hospital. Payne's company will also prepare a cash flow projection that will be used by both sides in further negotiations.

In other business, the Board was told the Hospital had lost $71,000 in April with $28,000 in accounts being sent to collection.

After the meeting it was revealed that Board member Tacy Nitzel along with Kyle Goerke will be traveling to Washington D.C. this week to meet with legislators and Medicare Representatives to have the million dollar debt to Medicare forgiven or at least reduced.

April 8, 2003
The Watonga Hospital Board spent 2 hours in Executive Session last night and appointed Financial Officer Brenda Doyel as Administrator at no increase in salary. She will earn her current $50,000 per year plus benefits.

March 24, 2003
The Watonga Hospital Board spent over an hour in their first executive session last night; but failed to take any action claiming that 'disclosure would seriously impair the ability of the pubic body to process the litigation between the Hospital and Quorum Management Company.

The second executive session took only 20 minutes and when they returned, the Board agreed to renew the contract for Dr. Mohammad Ash-Fack for one year at a salary of $145,000 which is an increase from just 3 months ago.

A third executive session took about 30 minutes. The hospital decided to interview 2 applicants for the position of administrator out of the 11 applications received. They will conduct those interviews at a special meeting April 7.

Financially, it hasn't been a good winter for the hospital. They lost $26,000 in February and $32,000 in accounts were sent to collection.

January 27, 2003
Watonga Hospital Board Members spent 38 minutes in executive session last night discussing the pending litigation with Quorum Health Resources who is suing the hospital for $271,000 in management fees. The Hospital meanwhile is countersuing Quorum for mismanagement claiming Quorum failed to advise the Hospital they were being overpaid by Medicare; that amount is now close to a million dollars. The Hospital is also asking for $5 million in punitive damages. Board Member Tacy Nitzel made a motion to offer a settlement to Quorum after they pay the hospital $2.3 million; then both sides will dismiss their lawsuits. The Hospital put a 30 day time limit on the offer.

Financially, the Hospital showed a $17,000 loss in December. The Hospital sent $66,000 in bad debts to collection.

Board Member G. L. Alexander was assigned the task of investigating the possibility of an assisted living center to the Hospital to increase revenue. Tacy Nitzel will investigate the dialysis unit; Susan Lee will find out more about adding cataract surgery and Alvin Woodruff was assigned the task of investigating a dermatology clinic. Several cost-cutting items were approved; mostly deleting phone lines and modem lines, some reductions in the lab expenses and eliminating some storage facilities. The hospital will also investigate moving the clinic to a different location; but that may not save enough money to be worth it.

Hospital Board Chairman Kyle Goerke again refused to grant a reporter's request for information regarding the salary of Dr. Mohammed Ash-Fack even after being presented with the open records act which includes that provision. Goerke said he 'would turn it over to counsel'. December 16, 2002
At their meeting last night, Watonga Hospital Board members decided to terminate their "excess" policy with Hospital Casualty Company saving about $7,000 in the process. The Hospital is continuing to search for ways to reduce expenses. The resignation of Physicians Assistant Robert Peevy ha resulted in an agreement with the remaining doctors to cover weeknights in the emergency room; something that hasn't been done in 2 years. The Hospital will maintain its supplemental weekend coverage with a outside firm.

The Board was also told that the wrongful death suit filed on behalf of Rhonda Haag was dismissed; but no further details were given.

The Board voted to transfer expenses from Delta Dental directly to the employees.

Board members also decided to change their meeting time to 7:30 pm starting in January.

The Hospital showed a $36,000 profit for November; but $35,000 in bad debts were sent to collection.

There has been no development in the Hospital's one-million dollar Medicare debt. They are still considering the possibility of waiving the interest; but it may take Congressional intervention before any progress is made.

December 4, 2002
The Watonga Hospital Board decided after a one-hour executive session by telephone with city attorney Dan Webber that they would file an answer to the summons issued by Quorum Health Resources. The Board will present all relevant defense motions and counter-claims in their answer. Quorum is asking for $271,000 in reimbursement for management fees that were not paid. The deadline to file an answer is December 9th. Board Chairman Kyle Goerke also said that the Board will file a counter suit charging Quorum with mismanagement for failing to advise the hospital that their now $1 million Medicare debt was getting out of control.

In other business, new board member Tacy Nitzel assumed the vice-chairman position that used to belong to Steve Smola who resigned.

The Board also signed the resolution asking for a 90-day extension on their loan with First State Bank & Watonga State Bank.

After a presentation by Travis Bradt, The Board decided to sign a resolution of support for a proposed 20-bed assisted living center.

The Board took no action on termination of their liability umbrella policy. The Board wants further clarification of how the cancellation would affect the Board Members & Officers Liability.

November 25, 2002
The Watonga Hospital Board had a short meeting last night after swearing in new board member Tacy Nitzel. The Board tabled the election of officers for the year.

They also tabled the financial report until Brenda Doyel can present it. However, her report indicates the hospital had a loss of $75,000 in October. A total of $55,000 was sent to bad debt collection.

They tabled any action on a proposed assisted living center because the representatives did not appear at the meeting to give a presentation.

They also tabled any action on terminating their umbrella liability policy.

They did approve extending the$150,000 note with First State Bank and Watonga State Bank for another 90 days.

The administrator's report which was not discussed by the Board, indicates the Hospital has hired Tammy Gallo as Physical Therapist. The report says the Hospital Auxiliary and The Hospital Foundation have both agreed to share the cost of new IV pumps.

The Board set a special meeting for December 5 at 7:30 pm. November 12, 2002
At their meeting last night, Watonga Hospital Board members were told that Board member Steve Smola had resigned.

In other business, the only discussion of the Quorum Management Contract was a letter from the company declaring the formal end to the contract with the hospital effective October 31st. The letter says Quorum intends to pursue all legal remedies available including litigation to collect the debt that is owed.

However, in a related development, a reporter's request for a copy of the Quorum Contract was refused by Chairman Kyle Goerke.

The Board also authorized city attorney Dan Webber to request an attorney general's opinion regarding the legality of the Board's Executive Sessions to discuss the Quorum Contract.

The Hospital Board took no action on a letter of support for a proposed assisted living center.

The Hospital Board decided to buy refurbished IV Pumps from Grady Medical of Oklahoma City for $8,640 if they can get some assistance from the Hospital Auxillary and the Hospital Foundation.

The Board agreed to an exclusive contract with Premier Partners of Oklahoma City for purchase of drugs and other medical supplies.

A measure to terminate the Hospital's Umbrella Policy for liability insurance was tabled. The umbrella policy was only required while the hospital was using Quorum's Management Services.

The Board signed a contract with the State Health Department that would partially reimburse the hospital in the event a trauma patient could not pay the emergency room bill.

October 28, 2002
Watonga Hospital Board Members were told at their meeting last night that the Hospital lost $41,000 in September. The bad debt total was $48,000.

The Board agreed to sign a release from the Discovery Channel regarding the filming of the emergency room activities on June 9 subject to obtaining copies of all the other release forms that were signed by the individuals present. The footage is either going to be broadcast in November or January.

Board Members asked financial Director Brenda Doyel to draft a letter to the legislators regarding the recent response from Medicare concerning the Hospital's outstanding debt. The letter will inform the Legislators of the progress and renew the Hospital's request for a 10-year payout period with no interest and all interest previously paid to go toward the principal.

The Board voted to table an item where they were asked to send a letter of support for a proposal to construct an assisted living center. The Board wanted the city attorney to review the document.

The Board took no action on a contract for I-V pumps. The previous contract cost $449 a month. The Board was told they can purchase 8 remanufactured pumps for $9800. They also wished for the city attorney to review that document, plus they wanted more price quotes.

It appears the Hospital will be able to purchase goods at a cheaper rate now than they could with the previous management company. Oklahoma Community Health Care, of which the Hospital is a member, says their prices will be lower without Quorum through their company, Premier Purchasing Partners.

Board Chairman Kyle Goerke said after the meeting that the Board had received correspondence from Quorum concerning termination of the contract; but no other details were given.

The Board also set a tentative special meeting for November 12.

September 30, 2002
The Watonga Hospital Board spent 33 minutes in executive session last night; but apparently failed to come up with a compromise plan to allow them 'early exit' from their contract with Quorum Health management. Board Chairman Kyle Goerke refused to comment other than to say the talks 'are progressing'. In answer to a reporter's question, Goerke said, "If key matters are resolved, they anticipate meeting again next week."

The Board also rescinded a portion of the contract that requires Quorum to furnish 'key personnel' while the contract was in place including an administrator. Quorum spokesman Ron McArthur said that former Watonga Administrator David Jordan had an interview in Sandusky, Michigan in 2 days. However, the hospital board only rescinded that portion of the contract for 30 days. McArthur was asked if he would be expected to come up with an administrator after that time. The board said the 30-day time limit is only in effect while they are still negotiating the contract.

The Board was also told that Watonga Hospital will be part of a broadcast on TLC called "Trauma: Life in the ER" in January. The company had asked for a signed release form from the Board; but they refused to act on it since it was not on the agenda.

September 23, 2002
Watonga Hospital Board Members spent over an hour in executive session last night and would only say that they discussed, with counsel, the contract with Quorum Management Services and that discussions will continue. When asked by a reporter how many more discussions would be needed, Board Chairman Kyle Goerke had no answer. When asked if the discussions would be completed by September 30, the date of Quorum's departure, Goerke would only say, "We are working along those lines."

Board member Alvin Woodruff asked that his proposal to the city council to forgive the old utility bills and discontinue any future bills be presented at the next council meeting.

Board members agreed to put Carol Holliday's name on the bank signature card to replace administrator David Jordan who will be leaving when Quorum does.

They decided to offer Dr. Ashfao a one-year extension on his contract with the hospital.

In his medical staff report, Jordan reported that Kelly Schenk, Director of Radiology, will be retiring October 4.

Financially, the hospital had a $64,000 loss for the month. The accounts sent to bad debt collection totaled $46,000.

The hospital is continuing their attempts to reduce the Medicare Debt. They have written letters to the U.S. Department of Health and Human Services asking that their original proposal of zero interest and all payments being credited to the principal still be considered.

September 16, 2002
Watonga Hospital Board Members decided last night that they will end their contract with Quorum Health Resources effective September 30; but Chairman Kyle Goerke said that negotiations will continue. When asked by a reporter if that would include a money judgment, Goerke said, "That is one of the items that could come up". The executive session lasted over 90 minutes.

A second executive session called to discuss personnel matters regarding Kathy Vermillion was not held. The agenda item died for lack of a motion.

September 3, 2002
After spending 53 minutes in Executive Session, the Watonga Hospital Board still could not make up its mind about Quorum Management Company and deferred any decision until the full board is present. They said that because of the importance of the topic, they should wait until Steve Smola and G. L. Alexander could be present.

Before the meeting, Jeff Fritz, speaking on behalf of the employees, said none of them wished to continue under this management group and said, "We, the employees, are not your enemy." Quorum was hired to protect the Board from lawsuits and liability; but they watched the Medicare debt grow from $300,000 to over $1 million in less than 4 years while telling the financial director that "it will all balance ut". Fritz said the Department Heads at the Hospital had met their audits for 15 years. They are dedicated, honest, hard-working people. Many of them have worked for 8 different administrators. Fritz asked the Board to "let the employees run the hospital" because the transition would be seamless and the employees have access to expert consultants that even Quorum doesn't know about.

August 26, 2002
Watonga Hospital Board members got some good news last night. They were told that Medicare is still considering their original proposal that would eliminate the interest on their debt altogether. The representative expects a decision within 60 days; but they also said the money will all have to be paid back with none of the amount forgiven. The interest rate could be lowered to around 6%.

In other news, the Hospital Board was told that before the City of Watonga could take over operation of the ambulance they must have a budget in place, insurance coverage, and they must have an agreement with a doctor to operate under his license. Board members Steve Smola and Alvin Woodruff were appointed to a committee to continue discussions with the City.

The Hospital has decided to end their long-running contract with the Red Cross and switch to the Oklahoma Blood Institute. Apparently they can get cheaper units of blood from OBI, quicker delivery, and with each OBI Blood Drive, the Hospital gets one free unit of blood for each 5 donated.

The Hospital agreed to sign a contract with Consolidated Collections Service of Chickasha as soon as their legal counsel can examine the contract. They will take a 30% commission.

The Hospital was also told that the X-ray Machine needs to be calibrated.

Financially, the Hospital lost $11,000 last month in spite of the sales tax collections. There were $38,000 in bad debts recommended for action.

An executive session was not held because of questions raised about improperly posting of the item on the agenda.

August 15, 2002
Last night's public forum by the Watonga Hospital Board produced many questions about how the hospital managed to achieve a million-dollar debt in such a short time and who was responsible. Board Chairman Kyle Goerke refused to lower the blame on any one person, but did say the debt was incurred because of the balanced budget amendment, which changed the way hospitals were reimbursed for Medicare. Since the hospital was being reimbursed in advance, they continued to collect reimbursements even after they sold their Home Health Department.

Quorum Spokesman Ron McArthur, who came under fire because of their failure to use their expertise to foresee the problem, explained that Quorum's services, leadership, education, consultation, purchasing, and management had amounted to $265,000 worth of free items the hospital received. McArthur said his company had not been paid in the past year which amounts to about $240,000.

In their meeting, the Hospital Board decided to have their legal department review the Quorum contract for the purpose of determining any termination ability in the contract.

The Board also approved a reimbursement plan from Medicare that would immediately cut the hospital's payments in half; but not change the total owed. The hospital is still hoping to have the interest waived and have the interest already paid be used to reduce the debt. There has been no confirmation of that yet.

With a round of applause from the audience, the Board also decided to ask the City of Watonga to withdraw the proposal for the 1/2 cent sales tax. The Council will meet next Tuesday.

July 29, 2002
At a special meeting of the Watonga Hospital Board last night they were told that June was not a good month with a loss of $145,000 bringing the total loss for the year to almost $300,000 which was helped by $272,000 in sales tax. Bad debts for the year totaled $180,000. Most of June's loss was attributed to higher professional fees and an undervalued inventory and a bad computer model that changed the gain for the year into a loss. The Board decided to issue a directive to Quorum Management that the problem with the financial computer model be resolved. Quorum is paid about $125,000 per year for their expertise.

The Board discussed the sales tax proposal coming up in August and decided to proceed. They scheduled a public forum August 15 to allow the public to ask questions. The Board will also be requesting donations to help with expenses during the campaign since hospital funds cannot be used.

Hospital Administrator David Jordan said he had spoken with Mayor Richard Hightower who had been 'receptive' to the idea of the city taking over the ambulance. The Board is expected to appear at the next council meeting to address the issue.

July 22, 2002
At their meeting last night, Watonga Hospital Board members were told that the financial report was not ready and would be presented by the special meeting next Monday.

Board Members tabled an item concerning privileged health information from Quorum which says, in effect, that neither Quorum nor the Hospital will divulged any personal information except to authorized personnel.

The cost report for Medicare has been prepared and the Hospital's former auditor Madole & Wagner, wishes to be paid for preparing it. The cost is $17,000.

The Board accepted the recommendation of the Administrator to hire Rehab-Works of Oklahoma City as their physical therapy provider. They will take 70% of the allowable fee for each service including occupational therapy & speech therapy.

Hospital Board members also directed the administrator to offer to sell or lease the ambulance service to the Watonga Hospital Foundation. This would results in an immediate $16,000 per month cash flow increase for the hospital even though the ambulance service generates $150,000 per year in excess revenue.

The hospital was also told that their request to re-finance their $1 million debt to Medicare was denied and they would re-visit the issue in 2003. However, a letter from Senator James Inhofe, who has been made aware of the situation, said "It's not over yet." The letter from Medicare was written before the letters from the elected representatives arrived.

July 8, 2002
At their meeting Tuesday, The Watonga Hospital Board agreed to request the sales tax question be placed on the ballot by itself; but that was all that was decided. A number of Board Members said they had heard no good news concerning the proposed 1/2 cent election which was intended to be used to pay off the Medicare Debt of $956,000. Board Member Alvin Woodruff came up with a list of ten questions suggested by the public. The questions they would like to ask in a public meeting is: