A proposed extension for an information
technology consultant at Natividad Medical Center would push the cost
of a two-year contract between Monterey County and Huron Consulting
Inc. to about $7.5 million.
County supervisors today will consider extending
a contract with Michael Jobin, the hospital's interim Information
technology director, through November 2008.
Jobin was hired in January to provide technology
consulting services for a nine-month period ending in September, or
until a permanent chief information officer could be hired.
Hospital officials are now suggesting it will
take another nine to 13 months to find a permanent replacement for
Jobin, who is earning $32,000 per month or about $374,000 per year
plus expenses.
The extension would cost up to $507,000 more
through November 2008.
Interim chief executive officer Bill Foley said
Jobin's extension is also necessary because work on separating the
hospital's information technology system from the county's will last
longer than expected, and Jobin is a key part of that effort.
Foley said separating the two systems, which
Huron has recommended as part of the management team's streamlining
efforts, will save money through operational efficiencies in the long
run.
"It's just taken longer," Foley said. "It's
still not totally done."
Supervisor Dave Potter, interim chairman of the
hospital board of trustees, said there is a strong consensus among
Natividad physicians and medical staff that the hospital "needs to be
its own master," separate from the county.
But Potter acknowledged that rising costs
associated with Huron's contract are a concern. He said he wants to
see a running tally of interim management costs compared to ongoing
savings at Natividad.
"That has been a major issue of mine," Potter
said, noting there are several other hospital-related spending items
on the supervisors' agenda, including an increase in Natividad
managers' salary ranges. "We want to be able to recruit, but we don't
want to be exorbitant, and the same way with Huron."
If the supervisors approve Jobin's extension, it
will mean the original contract will have more than doubled in about
nine months since an interim management group from Huron subsidiary
Speltz & Weis took over the county-owned hospital's operations in
November.
The group was hired to improve the
fiscally-stressed Natividad's bottom line. Speltz & Weis has since
been replaced by Wellspring Management, and original interim Chief
Executive Officer Thomas Winston has been replaced by Foley.
County supervisors originally approved a $3.33
million contract with Huron through November 2008, but county
officials acknowledged at the time that additional costs were likely.
Last summer, the county signed on to an
agreement with Salinas Valley Memorial Hospital and Community Hospital
of the Monterey Peninsula that would provide Natividad with up to $8
million over two years to help the public hospital with its turnaround
effort. Natividad required a county subsidy of about $22 million in
2005-06.
Since taking over last fall, the interim
management team has already completed a needs assessment and begun
implementing a business improvement plan for further improving the
hospital's operational efficiencies.
There have been three amendments to the original
contract, two of which cost a total of $3.62 million. The first
amendment was worth about $2.17 million and added Jobin's position, as
well as a management analyst and an interim chief operating officer,
while extending Chief Financial Officer Harry Weis' contract.
The third amendment initiated the first phase of
the business improvement plan at a cost of about $1.45 million.
During their first nine months, Natividad's
interim managers have reported that the hospital has cut its losses by
about $20 million over the previous fiscal year through May.
Also today, the supervisors are set to consider
hiring a long-range strategic planning consultant to develop a
blueprint for the future of the safety-net hospital. Consultant John
Abendshien of Integrated Clinical Solutions Inc. would earn $136,000
in fees and expenses for four months of work. Abendshien would begin
work Aug. 1.
The supervisors will also consider a bump in
hospital management salary ranges aimed at improving Natividad's
ability to recruit and retain qualified department managers.
According to Foley, several of the items the
supervisors will consider haven't yet been reviewed by the Natividad
board of trustees finance committee because there weren't enough
members present. Instead, they will be reviewed by the committee when
it meets on Thursday.
Meanwhile, Natividad has hired Carol Adams, a
former vice president at Dominican Hospital in Santa Cruz, as an
assistant administrator in charge of strategic planning and
institutional relations. Adams will begin work on Aug. 13.