Nevada County Picayune and Gurdon Times Newspaper Archive

Board To Continue Collection Until April

Three members of the Nevada County Hospital Board of Directors were on hand to conduct business for the defunct facility.

However, according to the former hospital's bylaws, in order to conduct business, four members must be present. Otherwise, all action is null and void if challenged.

And, the board did take action on some matters during their noon meeting Thursday.

First, the board voted to continue working on collections until April 1, 1996, with the three on hand, William Mullins, Duncan Culpepper and board president Don Mitchell all voting for it.

The trio also decided to address what to do about monies still owed after April 1 at that time.

The other item of business the board voted on was to amend its agreement with Buneva Wood, former controller of Nevada County Hospital. She has been acting in that capacity since the hospital closed in July, primarily working on collections.

The board agreed to begin paying Wood a weekly salary of $828 as long as she continues working full time on collections and other duties as specified.

In addition, the agreement was altered so Wood would be paid 15 percent of the money collected up until the salary starts, and on all funds received on accounts she has worked on after she leaves the hospital. The agreement also stipulated the board or Wood could terminate it with no advance notice.

While no action was taken on a fourth item, the board did instruct Wood to seek possible new housing for the business office and report back on what it will cost.

During her financial report, Wood said the defunct hospital is still owed $100,000 to $150,000 by commercial accounts, Medicare and Medicaid. She said another $700,000 is owed by private pay patients.

The private pay patients will be receiving notice in their bills this month notifying them their accounts will either be turned over to a collection agency or their wages garnished if they do not pay the balance owed.

According to Culpepper, those owing up to $3,000 can be taken to small claims court, while those owing more will have to be taken to circuit court for a judgement.

Wood told the panel "quite a bit" of the private pay accounts could be collected if wages are garnished. The problem, she said, will be with those who do not have steady incomes and wages that can be garnished.

These accounts, it was suggested, could be turned over to a collection agency. Wood said such an agency charges 30 percent of what it collects.

The board directed Wood to notify those owing money to the hospital their accounts would either be turned over to a collection agency or wages garnished if not satisfied.

Wood said this will take time as there are about 1,500 private pay accounts.

She also informed the panel the hospital's final cost report has been completed by the accounting firm of Hughes, Welch and Milligan of Batesville.

According to the report, the hospital owes Medicare $23,000. She said the federal agency will most likely withhold payments to NCH until this has been repaid.

In a letter to the hospital from the accounting firm, it was stated the process of correcting what the hospital owes Medicare could take 18 to 24 months to complete.

The debt arises because the hospital's per diem rate was less than $382. Wood said this was because of the chemical dependency unit.

In other business, the board was informed the computer system has been paid off, with the title being held by the Bank of Prescott. Wood said the bank will hold the title as long as needed.

Once the business office closes, ownership of the system will revert to the hospital foundation.

The board discussed renting office space for the business office, as long as it's economically feasible to keep working on collections.

Wood suggested possibly finding somewhere in Hope, where she lives, to cut down on the drive time, which, she said, could be used working on collections.

She was directed to find possible locations, what they would cost, including rent and utilities, and report back to the board.