Michael’s view of hospital debate...”It’s my agenda”

Editor's Note: Following is Part Two of an article that was published on Page One of the Friday, Sept. 25, issue of the Cibola Beacon.

CIBOLA COUNTY - The Cibola County Commission and the Cibola General Hospital Corporation are once again at odds. What started out several months ago as a small issue has turned into today's big verbal request from County Commission Chairman Eddie Michael for a statement from the CGHC board that the county is sole owner of the hospital.

    As of last week, the hospital board had no such plans to provide a statement.

The small issue was when Michael requested the hospital board to nominate one commissioner to its board. On the contrary, the board nominated ten people who are not commissioners, four of the ten already on the board. Five seats on the board were available. The four members stayed on the board and Walter Meech replaced Bob Ewell and ultimately left Michael unhappy.

    Michael said on Thursday, Sept. 24, that the hospital board's perceiving the issues in which the county commission has with the hospital board was not the agenda of new County Manager Scott Vinson. “They are not his (Vinson's) issues, the issues are my agenda,” Michael told the Beacon.

Last week, hospital board member and past president Lawrence Sanchez said that Vinson sold the Deming hospital to a Las Cruces hospital and now Deming has a “glorified clinic.”

    “Do they think I am stupid?” Michael said in regard to the hiring of Vinson. “I made a trip to Deming because I don't trust anyone. I reviewed the Luna County projects. I visited with the county chairman of Luna County. I saw the background in which Vinson left in Luna County.”

    According to Michael and Vinson, the Deming hospital has more doctors and services available to the public than CGH does and the communities are similar in size. “But that doesn't matter,” Vinson said, “The Deming hospital was a complete different situation than the Grants hospital. It was failing. Selling it was our (Luna County) best option. Cibola General Hospital is not failing and is well run. Our intent is not to sell. The issues here are all about accountability and transparency.”

    Hospital Board Member Sanchez said, “If you look back, the community has rallied for the hospital . . . some commissioners lost their seats because they tried to get involved (in the hospital).”

The hospital board told the Beacon last week that it is in the process of hiring new doctors and a new clinic is in the plans, “now everything is on hold because the commissioners have decided not to work with us,” board member Ida Chavez said.

    In the mid 1990s the hospital was financially challenged and the county became involved and purchased the hospital while CGHC operated it. In 2004, a new contract was created in which the hospital is to pay the county $260,000 a year in which, according to Michael, the fee has been waived the last few years in order for the board to focus on hiring new staff. The county agreed with CGHC to manage the hospital.

    The hospital relies on four county mill levies earning close to $800,000 per year. The hospital also relies on the county in pursuing state and federal grants, according to Vinson.

Hospital Board President Ann Mattila concluded the interview last week by stating, “My hope is we work collaboratively. If we have to battle with the county every time we turn around then we cannot pursue the long term goals.”

    According to Michael the big issue today is who owns the hospital. Hospital officials claim that the county owns the building and the hospital owns the operation. Michael said the county residents own the hospital.

    Vinson reiterated Michael's concern last week saying, “The taxpayer owns the hospital. The value of the hospital is the value of the business, the residents own that, the business.” Vinson concluded his interview by saying, “Eddie (Michael) wants the statement from the CGHC board because of hospital CEO Ken Cochran's comments recently that the county only owned the 'brick and mortar,' and CGHC owns the business.”

Hospital Management Agreement

The agreement's effective date was Feb. 20, 2004, and is good for ten years.

The second paragraph of the county and hospital agreement reads: “Cibola General Hospital is a general acute care hospital owned by the County located in the City of Grants, County of Cibola, New Mexico.”

    Article I, 1.4, of the agreement states: “‘Hospital’ means the real estate and improvements of CGH owned by the County including the Hospital building and surrounding parking areas, driveways, and other improvements, appurtenances, fixtures, furniture and other tangible personal property used in connection with, or incorporated into or affixed to any part of the Hospital building as of the Effective Date.”

    Article I, 1.5, states: “‘Hospital Operations’ means all health care, administrative and related or ancillary activities conducted as of the Effective Date.”

    Article III, 3.1, states: “Management of Hospital. The County hereby engages CGHC to manage the Hospital, including the provision of all services necessary or required to provide for the day to day operation of the Hospital, and CGHC hereby accepts the management responsibility for the Hospital for the Term.”

    Copies of the agreement are available upon request at the Beacon.

Chairman Michael said on Sept. 24 that he has other issues with CGHC such as an architectural contract not approved by the commission and open meetings policy. However, he said his top priority now is the statement from the hospital board.

    The hospital board was expected to meet last evening. The county commission is to meet in executive session Sept. 29, at 2 p.m.