Hospital addresses reader’s charges of financial instability

Editor:

Using the Public Information Act, Sonoma Valley Hospital financial information was requested via several requests for public records. This was done because voters are concerned the finances of the hospital are unstable. Residents have generously passed numerous Parcel Taxes and Bonds in order improve and keep our beloved hospital in the community. Information that voters receive now is through press releases by the Board, CEO and marketing consultants from the hospital.

In 2014 employees were told that because the hospital could not pay its debts in a timely manner, layoffs were necessary and a series of layoffs ensued. Employees were stunned, when two months later, the CEO was given a 10 percent raise and a $25,000 bonus, when under her direction, the hospital has been driven into debt.

Numerous times the hospital illegally used retirement deductions from employee paychecks to float themselves loans in order to pay delinquent bills. All the while, the CEO spent outrageous sums at hotels and restaurants taking friends and colleagues to dinner, and the SVH Board ignores hospital policy requiring the CEO to submit itemized receipts for expenses.

On 12/31/14, vendors were owed nearly $4 million, and about $1.5 million was over 90 days delinquent. As the hospital put off payments due, some vendors threatened to withhold future services. Loans totaling nearly $13 million that the hospital has borrowed continue to rise from prior years. Let’s keep the CEO and the Board of Directors accountable to the residents of the District.

Brian Johnson
Boyes Hot Springs

Rebuttal: Hospital financially solid, transparent

Editor:

At a time when many small hospitals are closing, SVH continues to provide our Valley with excellent care. Quality, safety and patient satisfaction scores place SVH among the top hospitals in the nation, even as the hospital has solidified its current financial stability. The physical plant has also been modernized and expanded.

Much credit goes to hospital administration and staff under the leadership of Kelly Mather, who became CEO in 2010 with the mandate to fix the problems. Their accomplishments are extensive, including the following.

SVH has increased staff salaries and benefits to industry norms, and morale is high. A recent outside survey ranks SVH staff satisfaction within the top 10 percent of hospitals nationally. SVH has increased revenue by $5 million since 2010, while reducing expenses by $2 million in the past year due to government reimbursement cuts. Care was taken to minimize impact on staff and only six full-time positions were eliminated last year. Staff reductions accounted for just 15 percent of the $2 million saved.

Finances continue to improve. Current accounts payable is under 55 days and significantly less than accounts receivable, standard for the industry. Current debt level is also within the normal range for a hospital of our size. SVH has followed regulations governing our employee retirement accounts and made all retirement payments within the specified time in the past two years. All hospital expenses, including executive charges, are audited annually and have been found in compliance with hospital policies and mandated rules.

We value our community’s trust and are completely transparent in how we operate, readily sharing financial, operating and planning details. Through this open communication, we hope the community understands the great progress its hospital has made in transforming itself for the future.

Sharon Nevins
Chair, Sonoma Valley Health Care District Board