The taxpayers’ hospital

Recent revelations about past financial mistakes inside Healdsburg District Hospital should not be taken as any reason for patients, doctors and community partners to withhold support or question its medical excellence. A business turnaround looks to be in place and elected leaders of the North Sonoma County Healthcare District last week expressed their vote of confidence in a new management team, now completing its first full year on the job.
The hospital is owned by the district, which encompasses most of northern Sonoma County, from Cloverdale south to Windsor. Healdsburg and Geyserville taxpayers pay into the district annualy through a $150 a year parcel tax.
“This is not our worst of problems,” said longtime healthcare district director E.J. Neil. “Our worst problem would be not having this hospital. The medical aspects of our hospital are absolutely excellent.”
That sentiment was shared by the nurses who recently made public comments about delayed pay increases and their frustrations over staffing changes. “Pay is not our number one goal. Patient care and team morale are more important,” said Registered Nurse Mary Doll.
That doesn’t mean the north county’s hospital is not facing critical financial and business challenges. And it doesn’t mean the nurses wouldn’t like to get a raise after having their salaries frozen almost two years ago. But the hospital’s cash problem is nothing new.
Since converting to a taxpayer-owned hospital in 2002, Healdsburg District Hospital has had to fight for its survival. It is a story that is being played out in thousands of small and rural communities as the healthcare universe keeps changing in the United States. More than 100 similar-sized hospitals have closed their doors since 2010 — one being as close as Palm Drive Hospital in Sebastopol — forced out of business by consolidation with larger medical corporations, declining government reimbursements and the challenge to recruit enough doctors.
The North Sonoma County Healthcare District was formed by voters to operate the former Healdsburg General Hospital which has been serving the residents of Cloverdale, Geyserville, Healdsburg and Windsor for more than 100 years. Through parcel tax collections to the district, property owners now contribute $3.3 million per year to district operations.
It is wonderful news that northern Sonoma County has a hospital to call its own — even with its business struggles and recently revealed past financial reporting mistakes.
The new management team, led by CEO Nancy Schmid, has worked to upgrade the hospital’s computer system and business operations. After losing $8 million in two previous years, the hospital cut its losses in half last year ($2 million) and has a “break even” budget in place for the current year.
Smaller hospitals like Healdsburg must survive with lower payments from larger private health insurance companies while faced with the same higher overheads throughout the healthcare industry. All hospitals face doctor and nurse shortages and it is a challenge to match adequate staffing levels to changing patient counts.
The communities of Cloverdale, Geyserville, Healdsburg and Windsor are all faced with an extreme shortage of primary and family physicians. Without enough local doctors, people must travel too far for their healthcare needs. This pattern takes money away from the local hospital and its ability to pay its nurses and other staff.
The hospital’s taxpayers — it’s rightful owners — deserve an open and complete accounting of recent business troubles and transitions. Running a hospital is a very complex business and like all government bodies, the more public review, the better.
Because of a recent resignation, there is a vacancy on the five-member board of trustees that oversees the district. A new set of eyes and a fresh list of questions could add more reasons for everyone to gain confidence in their hospital’s continued fight for survival and continued record of medical excellence. Interested persons can send a self-nomination to the board clerk at Healdsburg District Hospital, 1375 University Ave., Healdsburg, 95448.
— Rollie Atkinson