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HomeNewsLocal newsJFL Board Votes to Sue CMS

JFL Board Votes to Sue CMS

JFL board member Philip Arcidi presents a donation to board president Aracelis Bermudez Walcott, at Wednesday’s board meeting. The donation brought the total gift amount on behalf of his family and Greenleaf VI over the last several years to $525,000.The governing board of the Gov. Juan F. Luis Hospital voted Wednesday to sue the federal Centers for Medicare and Medicaid Services for an increase in the reimbursement rate for services to patients covered by CMS that reflect the actual cost of the medical care provided rather than costs from 20 years ago.

According to Philip Arcidi, board treasurer until last month’s election of officers, CMS typically reimburses the hospital around $10,000 for every $18,000 in services to Medicare and Medicaid patients – a lost of about $8 million a year. Almost a year ago, an appeal was sent to CMS asking for an increase from1996 prices in the base rate. Since there has been no CMS response, despite JFL follow up, Arcidi made a motion, approved by the board, to search for and contract a suitable legal firm to file suit with the V.I. Supreme Court “to get what is due.”

Meanwhile, after being cited by CMS in November for several deficiencies that involved problems with heating, ventilation and the air conditioning system, JFL was notified in December that its plan of correction was denied. According to Richard Evangelista, acting chief executive officer, a revised POC and a list of achievements was submitted this week.

“The hospital believes the documents submitted will ensure compliance with the conditions of participation as the hospital undertakes a longer term capital project to upgrade the hospital’s environment of care,” he said in his report.

The 31st Legislature had appropriated funds to begin repairing the air conditioning system and remediate the mold problems listed in the CMS report.

The board also discussed ongoing financial challenges, including a delay in receiving monthly allocations from the V.I. Government. Chief Financial Officer Tim Lessing said that currently the hospital is owed $700,000 for December and $1.7 million for January. It needs the funds to pay vendors, he added.

Repairs to the cafeteria are 50 percent complete, the board learned, and when notified the hospital cannot pay for the work, the contractor volunteered to continue and complete the job in 60 days.

Board members and Valdemar Hill, chief of human resources, also discussed the potential need to eliminate redundant staff to improve finances and cut down on overtime abuse. The hospital is for healthcare, not for the employment for individuals, said Theresa Frorup-Alie, chair of the finance and human resources committees. The hospital’s average occupancy is 55 beds per day and there are 622 employees, a number substantially higher than industry standards, she pointed out.

“We don’t wish to put anyone out on the street but we don’t want individuals coming in off the street dying,” she said and repeated several times during the discussion.

Hill and Frorup-Alie said a competency test is being developed that will be given to applicants and longtime employees.

The board also put a limit on the amount of overtime employees can work in a two-week pay period, 16 hours for medical staff and eight for non-medical staff.

Chief Medical Officer Raymond Cintron and Evangelista, updated the board the V.I. Cardiac Center on St. Croix and why it has been out of service for a week. Not only were the two cardiologists away for military duty or out on sick leave, but the air conditioner was not working. At the same time, the cardiology unit at the Schneider Regional Medical Center was down also. A rental chiller to repair the JFL air conditioner will be on line Saturday or Sunday and a physician be at work about the same time, the board was told.

“It’s a hazard to live on this island,” board member Troy de Chabert Schuster commented after discussing the VICC.

Cintron updated the board on hiring new medical staff and said two physicians and three physician assistants have accepted contracts and should be at work by March 1.

The board also approved contracting B.E. Smith Company to begin a search for a permanent chief executive officer – Evangelista has been acting CEO since last May – and a three-year capital budget. Without going into detail or providing a copy to the public, Lessing said the $23 million budget includes plans to remove mold in the building, repair and replace parts of the air conditioning system, replace electrical panels and to address roof, drainage and plumbing problems. The purchase of 25 new dialysis machines is also in the plan.

Two physicians were approved by the board for re-appointment and two others and a physician’s assistant were granted initial medical staff privileges.

The meeting was conducted by new board president, Aracelis Bermudez Walcott. Also attending were de Chabert Schuster, vice chair, Frorup-Alie, treasurer, Vera Falu, chair of the planning and the performance improvement committees and Arcidi. 

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