KINGMAN, Ariz. – On September 15, the Hospital District Number One of Mohave County met in regular session. Present was a seven-member delegation of hospital brass, including Krystal Burge, Chairman of the Board for KHI (Kingman Hospital, Inc.). KHI is the parent of KRMC (Kingman Regional Medical Center). There were no members of the public in attendance other than two people who were acknowledged by Chairman Marsh as attending online.
The Board members voted 2/0 (Dr. Newmyer arrived later) for the “acceptance, accounting treatment, designated purpose and documentation of a bona fide donation” of $1.5 million which appeared in the Mohave County Treasurer’s Report as a deposit on July 9 by KHI.
Board members were apparently unaware of the KHI donation until the August board meeting and an executive session was called. Without the KHI donation, the Board would not have been able to make payments on the most recent IGA (Intergovernmental Agreement) with AHCCCS in favor of KRMC as well as on-going IGAs.
The Board recently departed from past practices and added a “community donations” account in their budget. That is where the $1.5 million was credited. The Board seemingly did not have enough money to cover the payments on the newest IGA (Intergovernmental Agreement) nor any outstanding and future IGAs without these types of donations from KHI. KHI will receive in excess of $5 million as a result of the IGA. KHI provides the executive assistant for the board and, as well, pays some expenses for the Board.
On July 1, 2020 the hospital was paying $300,000 per month for the lease. As a result of contract renegotiation (which prior board members approved), it was reduced to $200,000 effective July 1, 2021 and then reduced to the current $100,000 effective July 1, 2025. It is unclear whether a new lease will negotiated.
The hospital district lease income was essentially reduced by $7.2 million over the past six years using the baseline of $300,000 per month. Meanwhile the district is exponentially increasing its expenditures.
In other action, the Board voted (2/0) to take up the matter of updating the By-Laws at the October meeting and to discuss, in November, the approval of a procedures manual. Attorney Tom Price is working with member Leanne Smith on these documents.
“Having 20 plus years as (an) executive strategic planning consultant working with multi-billion-dollar firms, I was really disappointed that we didn’t have a manual,” stated Smith. “Until we can know what we need to know especially in the financial department, especially with this hospital, the funds going back and forth from different entities, nobody can really understand the budget.
“Especially when you come in, and this is a volunteer position, you really need to know (these things and) to have that manual; because that will help you make really good decisions and vote correctly. So that’s why I think this is essential and I look forward to having that in the November meeting.”
Price advised the Board that the By-Laws that were previously proposed were never agendized or ratified by the Board.
The most recent By-Laws document was approved by the Board in April, 2018 and it states that: “Three members of the Board of Directors shall constitute a quorum for the transaction of business.”
The proposed By-Laws to be voted on in October will change that section to read: “A majority of the sitting Board of Directors shall constitute a quorum for the transaction of business.” This raises the question of whether the 2/0 votes taken following the recent resignation of two board members are legal.
The Board will next meet on October 13 at 4:00 p.m. at KRMC, Conference Room A, 3269 Stockton Hill Rd.
Becky Foster
