Petersburg Medical Center board reviews July finances, construction progress and pending certificate-of-need questions

The Petersburg Medical Center board on Aug. 28 reviewed July financial results, construction progress at the new work building and next steps on the hospital's certificate-of-need application and grant proposals.

Board members were told operating revenues were slightly under budget for July but nonoperating and capital grants produced a positive bottom line. Jason (finance) reported gross revenues of about $2,000,730, roughly $40,000 below budget, and said total operating revenues were about $73,000 under budget. Nonoperating and capital grants totaled about $1.3 million, which contributed to a positive overall result. The board was also told that annual insurance premiums of about $300,000 were paid in July, reducing operating cash on hand for the month.

The financial update placed other activity in context: clinic visits were 790 in July versus 833 a year earlier; radiology procedures were about 253; emergency-department visits were 102 for July; hospital days were 12 (down from 34 year-over-year); swing-bed services were 54 (down from 113); and long-term care census was 426 in July versus 372 the prior year. Jason said the first month in the new work building shows the organization is covering depreciation and utility costs tied to occupying the new space.

Why it matters: the board is managing a multi-phase campus project while sustaining operations. How the hospital handles construction costs, grant timing and physician staffing affects service availability and future capital plans.

Construction and facilities: Hospital leadership described a gradual "soft opening" of departments into the new work building, with utilities coming online and staff relocating. Justin (facilities) said permitting for the Wellness Drive extension to Excel is complete, contractor pricing has been negotiated, and excavation and fill work are planned to begin in early September. Work on a retaining wall toward the hospital has progressed to footer pours and upcoming wall pours, and the project will include a delineation fence between the new work building and the future hospital site.

Certificate of need and grants: The board was told the certificate-of-need (CON) application is still under review; the team has submitted responses to a couple of questions and is awaiting further action. Leadership said the hospital's grant writer is pursuing options for rural professional housing and other supports tied to the campus plan.

Board members also discussed a recent state Request for Information (RFI) tied to the federal Rural Healthcare Stabilization and Transformation funds. Phil (staff member) praised staff for preparing a timely, detailed response and said the hospital is "shovel ready" for capital phases that would focus next on long-term care as a separate building on campus. The board was told the federal program could open substantial funds to the state and that the hospital is positioning itself to apply.

Other operational notes: leaders said summer volumes and emergency-department activity were elevated as expected. The organization is negotiating with payers; Primera Blue Cross Blue Shield contract negotiations are underway and discussions with Aetna are ongoing. Staff also reported delays in some state grant payments caused by state computer-program changes; the hospital said it negotiated with vendors to avoid late fees.

Votes at a glance: The board approved the meeting agenda for Aug. 28 and approved the July 24 hospital board minutes (both recorded as "Aye" in roll call). The board also voted to go into executive session to consider medical-staff appointments and reappointments, legal concerns and to conduct the CEO annual evaluation; the motion to enter executive session was made from the floor and passed.

What's next: leaders said they will continue CON responses with their contractor, pursue state and federal grant opportunities, and proceed with the next construction tasks on the campus site. The board also noted upcoming recruiting for a departing physician (departure referenced as November in the meeting).