Grays Harbor Community Hospital

“In july 2017 the organization discovered a significant diversion of assets in the amount of $394,430. An employee diverted funds by using accounts payable disbursements to pay personal expenses. The employee also altered payroll information to increase their compensation and to compensate a non-employee. The organization was reimbursed for the diverted funds from insurance and the amount was treated as taxable wages to the employees. Additionally, the organization has taken several steps to increase segregation of duties within its internal control structure, including involvement of those outside the accounting function and independent of certain steps of the transaction process within accounts payable, payroll, bank account reconciliation, and deposits.”

“The sole member of the corporation is grays harbor public hospital district no. 2.”

“As the sole member, the district has the right and power to appoint and remove all members of the corporation's board of directors including the right to appoint the members of the district's board of commissioners as the sole members of the corporation's board of directors.”

“The district has the right and power to do the following: approve any amendments to the corporation's article of incorporation or bylaws; approve any merger or consolidation of the corporation; approve the sale, conveyance, mortgage, pledge, lease, exchange, gift, transfer or other disposition of any property or assets of the corporation; approve the incurrence or guarantee of any indebtedness of the corporation; appoint or remove the corporation's chief executive officer; approve or amend the corporation's annual operating and capital budget; approve or amend the annual operating or strategic plan for the corporation or the hospital; approve any action that would result in the hospital's closure or the loss of the hospital's license; and approve any decision to cease the corporation's activities, dissolve the corporation or distribute the assets of the corporation.”

“After preparation of form 990, it is reviewed by the cfo and submitted to the board of trustees prior to being filed with the internal revenue service.”

“Any contractual arrangement, partnership, agreement or fiduciary relationship entered into by grays harbor community hospital and any other party that will affect the mission, vision or values of the hospital, must respect and abide by the policies, procedures and directives of grays harbor community hospital. It is the policy of grays harbor community hospital that no health care provider, employee, staff member or other hospital personnel should use his or her position or any knowledge gained as a result of his or her position, in any manner such that a conflict does or may arise beetween the hospital's interests and his or her personal interests. A person violating this policy may be subject to disciplinary action in accordance with human resources policy. Board members annually sign conflict of interest questionnaires and these are reviewed by the compliance department for any potential conflicts of interest. If a conflict arises the board member must excuse themselves from discussion of and voting on the issue. If a board member is an owner in a company that is causing the conflict of interest a contact of the company other than the board member must represent the company in negotiations with the hospital for contracts at fair market value. Essentially the board member cannot be involved in the transaction in any way.”

“In december 2016, a three-year contract was offered by the board of directors and signed by the ceo. That contract set forth salary levels for the years 2017 to 2019. At the time of the contract negotiations, salary survey information from the washington state hospital association (wsha) executive survey, completed by gallagher benefits on the behalf of wsha, had been provided to the board of directors. In 2017 we participated in the milliman northwest health care executive compensation survey which gathered information on not only the ceo but also 27 other executive level positions. The survey results were given to the ceo by the executive director of human resources and utilized by the ceo in developing market-based salary information for the other executive level positions.”

“The organization makes its audited financial statements, conflict of interest policy, and other governance documents available upon request. Documents are maintained in the office of the ceo. Copies may be obtained by contacting niall foley, executive director of finance.”

“Grays harbor community hospital provides quality health care services regardless of race, creed, sex, national origin, handicap, age or ability to pay. Although reimbursement for services rendered is critical to the operation and stability of grays harbor community hospital, we recognize that not all individuals possess the ability to purchase essential medical services. Our mission "to heal, comfort, and serve our community with compassion" encompasses the provision of health care services and education to any and all members of our community. Free care and/or subsidized care; care provided to persons covered by the governmental programs at below cost; and health activities and programs to support the community are considered where the need and/or an individual's inability to pay co-exists. During 2017, grays harbor community hospital cared for 3,596 inpatients and provided medical services to 101,181 outpatients. In alignment with our mission to the community, services are provided to all patients regardless of the ability to pay. To the extent reimbursement is below costs, grays harbor community hospital recognizes these amounts as charitable care in meeting its mission to the entire community. The un-reimbursed value for providing care to these patients was $854,433. Charity care is also provided through many reduced-priced services and free programs offered throughout the year. These are activities and services; which grays harbor community hospital believes serve to meet bona fide community health needs. The community plays a major role through voluntary assistance in helping grays harbor community hospital provide quality services. In 2017, thirty-nine (39) volunteers, provided 11,251 hours of service at a value of $221,532 for grays harbor community hospital. Areas of assistance included patient assistance, gift shop assistance, sewing, receptionists, administrative aides, etc. In conjunction with providing health care in the community, educational programs, clinics and activities were provided to physicians and office personnel, long term care facilities, community members, and schools in our surrounding area during 2017, including: provided regular meeting facilities for nonprofit organizations and support groups for alcohol, drug and nutrition abuse including, alcoholics anonymous, narcotics anonymous, back to basics, diabetes prevention program, toastmasters, adult children of alcoholics, aapc coders, alanon, united way, , foster parent training, gluten free living support group, look good, feel better, breast cancer support group, narcotics anonymous, national alliance for mental illness, overeaters anonymous and tops international. Facilities are provided free of charge. Special community support was provided in 2017 which included - free blood pressure screening - free falls assessments - free vision screening - greater grays harbor, inc., volunteer chairman and membership support - career fairs for high schools and college students - job shadowing for high school students, students accompany and observe staff in the performance of their regular job duties - falls prevention programs for senior citizens - business week mentoring at local high schools - public relations and women's health presentations to local civic groups - wound healing, rehabvisions, family birth center, harborcrest and emergency department participation in local greater grays harbor free public information expo - instruction in twin harbors professional medical careers high school program - rn precepting to senior grays harbor college rn students - coordinated and hosted the annual community rock your health fair with 37 vendor partners (including ghch departments and services) showcasing products and services for children to seniors. Contributed donations to numerous community support programs and projects: - the ymca of grays harbor "strong kids" program - hoquiam logger's playday - american cancer society relay for life - united way of gr”

“Other fees: program service expenses 3,575,908. Management and general expenses 1,135,334. Fundraising expenses 0. Total expenses 4,711,242. Purchased services: program service expenses 5,770,615. Management and general expenses 1,832,143. Fundraising expenses 0. Total expenses 7,602,758. Professional fees: program service expenses 8,005,128. Management and general expenses 2,541,590. Fundraising expenses 0. Total expenses 10,546,718.”