The Flint Hills Community Health Center Board of Directors approved a plethora of policies during their monthly meeting Tuesday.
Among these was a new Premium Pay policy which provides hazard pay for frontline workers. According to FHCHC Chief Financial Officer Stephanie Ringgold, this is a retroactive policy, with the board approving an effective date of Jan. 1 for the policy.
The health center is utilizing funds from the federal paycheck protection program to cover the hazard pay which became effective Monday. According to Ringgold, the health center has decided to take a “conservative approach” with utilizing the ppp funds.
This includes not utilizing those funds to bring back all previously furloughed staff according to Ringgold. She explains the ppp funds are set to run out in June, meaning if all furloughed staff were to be brought back now, come June the health center would have to fund each of those staff members “operationally.”
With much uncertainty surrounding patient revenues in the coming months due to COVID-19, Ringgold says this could potentially lead to a secondary furlough at the end of June. Ringgold says the health center is aware that the decision could mean not having 100 percent of the PPP loan forgiven.
However, by keeping the funds separate and making individual transfers for allowable expenditures the Ringgold is confident they will have the cash balance available to pay the principal balance of the loan to zero.
In other business, the monthly financial reports for February and March showed up and down financial activity. According to Ringgold, February saw a net loss of $160,000 with cash on hand decreasing from 69 days to 67.
However; the health center rebounded in March with a $49,000 net profit and cash on hand increasing to 73 days. This profit brings the health center’s year-to-date net profit to $54,000.
Despite the gain for March, Ringgold says the health center is still bracing for an anticipated 70 percent reduction in revenue for April.
The board’s monthly meeting followed its annual meeting during which time the board approved the reappointment of directors, the appointment of officers, sites and hours of operation and the annual CQI and risk management reports. Additionally, the board approved the ratification of business and affairs of the preceding year.
The FHCHC Board of Directors will next meet Tuesday, May 26 at noon. The meeting will likely take place via Zoom.
