David Squire is a recognized expert on Medicare and Medicare Cost Reports.  At the HRC's request he analyzed MCDH's cost reports from 2002 through 2005.  Below is his response to the latest (2005) cost report.

From: David Squire
To: Hospital Resource Council
Subject: Re: Medicare Cost Report for 2005
Date: Tuesday, January 24, 2006 8:40 AM

Vince and others,

I had outlined 5 areas of concern in my earlier (10/11/05) review.  With the one exception of length of stay, all other issue still remain a concern.  Medicare length of stay has decreased along with the overall hospital length of stay.  That is good, but the bad news is that the hospital cost per day has increased by almost 20 % (one would expect a corresponding decrease in expenses).  Very bad!!!  An unacceptable rate of growth for expenses!!  Management is not doing their job!

I think the core issue is governance.  The hospital board is not doing their job!  Management must be held accountable.  (I know these are strong statements)  The board needs to be educated in order to do their job correctly, or be replaced.  Such drastic board changes will take time and must be started soon in order to save the hospital.

I am willing to discuss by phone in greater detail.  Hope this helps.  I still think you can turn the hospital around however, it will take some real effort.  Time is short.  If another year passes with out change I'm not sure you will be able to save the hospital.

My 2 cents worth.

-David

David F. Squire, MPA
Chief Financial Officer
Utah Medical Education Council