HERMANN – In his brief tenure as administrator of Hermann Area District Hospital (HADH), Bill Hellebusch has reached something of a milestone in his effort to lead the health care facility to solid fiscal ground.

For the first time in recent memory, HADH’s administration was able to meet payroll last month without having to dip into the facility’ reserve fund. The achievement was applauded Monday night by members of the hospital’s board of directors during its regular monthly session.

Taking note of the accomplishment, also, was Mercy Washington President Eric Eoloff, who was attending the board session. He used the occasion to promote the alliance between Mercy Washington and HADH. It was through the alliance, which included a management agreement for the Hermann Hospital, that Hellebusch was named successor to longtime HADH Administrator Dan McKinney upon his retirement earlier this year.

“Hopefully, you’ll agree that this (the alliance) was the right decision,” Eoloff told the board members, adding that “only time will tell.”

Hellebusch has spent his first few months on the job splitting his attention – looking to increase revenue on the one hand and cutting expenses on the other. He has been making progress in both directions. For instance, he told the board HADH had a net income for July of $241,000. That’s a welcome departure from monthly reports that consistently showed the hospital losing money.

The good news from July is bolstered by improving “swing-bed” referrals to HADH. Swing beds refer to rooms occupied by patients who might not need additional medical care but who might be in need of physical therapy or occupational therapy before returning home. Last month, there were nine swing-bed referrals from Mercy Hospital Washington and two who were in-patients at the Hermann hospital.

Eoloff pointed out that the nine referrals from Mercy is an “all-time high.”

Hellebusch reported that so far this year, HADH has had 32 swing bed patients. That’s key because the swing beds are profitable for the hospital. The aim is to continue to grow the number of swing-bed patients.

“I think we will eclipse the high-water mark for those patients,” Hellebusch told the board. “I think we can set a 10-year record.”

Hospital officials continue to grapple with a few trouble areas, including Emergency Room transfers, increasing efforts to collect outstanding bills and, on a new front, dealing with the loss of revenue for so-called “observation” patients. Those patients are admitted for observation, rather than for acute medical treatment. At issue is the decision by Medicare Advantage plans to pay for a limited amount of time for patients admitted for observation.

While the typical stay for an observation patient is 16 to 18 hours, there are times when a longer stay is necessary for the medical staff to make a recommendation.

“We’re not getting paid anymore beyond 16 to 18 hours,” said Dr. Michael Rothermich, chief of the medical staff.

Meanwhile, the board approved a 2023 property tax rate of .9620 cents per $100 assessed value. Property within the hospital district – which roughly mirrors the Gasconade County R-1 School District, and includes parts of four counties – is assessed at $168 million. Hellebusch said the property tax rate will generate an estimated $1.6 million, compared to $1.45 million received from the property taxes last year.