Katherine Carsky

Edward Stolzenberg (Commissioner of WCMC), Fred Miller (Deputy Commissioner), George Hosey (CBAC & Co. Plan. Board)

The meeting was called to order at 2:05 PM.

Today’s committee meeting topic is an ongoing discussion of the state of affairs of the Westchester County Medical Center (WCMC). Two main issues are governance and the Children’s’ Hospital.

The Commissioner commenced his discussion with the issue of governance, and stated that he knew as much as the Committee knew. The governance bill did not get through the Senate, and although there has been some talk of the bill being revised, it is not optimistic.

Since governance did not pass, the Commissioner went on to explain the problems that the WCMC will encounter in the future. Managed care is continuing to grow into 1997 and this growth will create revenue problems for WCMC. Every time manage care grows, WCMC must take additional discounts. New York State Perspective Reimbursement Methodology (NYSPRM) disappears January 1st. The significance of this is that what is currently 30% regulated business will become unregulated, and WCMC cannot tell what discounts they will have to take to hold on to business.

Leg. Swanson asked whether NYSPRM was beneficial for the Hospital. The Commissioner answered, yes. Leg. Swanson also questioned whether with the disappearance of NYSPRM will force the hospital into a competitive environment. The Commissioner answered that the hospital will be in "warfare with everybody" for cases.

Leg. Carsky questioned whether the hospital would lose any cases, the Commissioner answered, yes. The Commissioner stated that 1997 is a year of concern since WCMC will have to make large cuts in their expense budget in order to stay relatively even. They

are looking at losing approximately $40 million dollars in revenue, in one year, even with the same number of cases. In addition, because the hospital was not in a competitive mode, they never built-up an ambulatory care base.

Leg. La Motte questioned the status of the ambulatory care, and the Commissioner stated that it was fine. However, ambulatory care is mainly private practice, and thus they are not hospital based.

Leg. Swanson questioned whether there is a contingency plan other than expense reduction. The Commissioner mentioned creating a Community Based Corporation that could do business on behalf WCMC, selling the medical center, or have the County continue to support the deficit.

Leg. Stewart-Cousins questioned where the legal department was regarding the Community Based Corporation option. The Commissioner answered that they just started working on it and they will soon have models. Once those models are ready they would have to see how they would "filter through".

Leg. Swanson questioned the Commissioner whether there were any leases signed in the Pepe building. The Commissioner answered, yes. However, he stated that they have not done any work so far. Leg. La Motte questioned whether they have computed the number of square feet that will be vacated in the medical center itself, to go over to Pepe building. The Commissioner stated that the information was available, but he did not have same and would provide it to the Committee.

Leg. Stewart-cousins asked the Commissioner to address the Children’s Hospital issue in connection with all of the issues discussed above. The Commissioner stated that a thorough presentation will be given in approximately two weeks.

Leg. La Motte questioned the Commission with regard to Agenda item number 5, an article entitled, NEWEST TRIAL THERAPY FOR SEVERE HEAD INJURIES SHUNS COMPLEX REMEDIES FOR SIMPLE ICE WATER. The Commissioner stated that WCMC does not apply this procedure, but he would give her a response.

Leg. Swanson moved to accept the minutes of August 20, seconded by Bronz. All in favor [3-0] (Leg. La Motte left to attend another meeting).

Leg. Bronz moved to receive and file item 7, seconded by Leg. Swanson. All in favor [3-0].

Leg. Swanson moved to adjourned, seconded by Leg. Bronz. The meeting adjourned at 3:10 PM.

(A taped copy of this meeting is on file)