Sunday, October 2, 2011

Evergreen Hospital Commissioner incumbent August Kempf copes with State audits during 2011 election


R. August Kempf, Commission Pos 3
Represents Redmond / Sammamish
Editor's Note:  In the October 2, 2011 election Mr. Kempf won 98% of the vote.  

Commissioner August Kempf's financial expertise hasn't appeared to help Evergreen resolve problematic annual state audits.  Should Commissioner Kempf oversee Evergreen Healthcare for another six years? 

Evergreen Hospital is a property-tax supported county hospital.   $24,153,945 in levy monies were collected last year from Redmond, Sammamish, Kirkland, Woodinville, Bothel, Duvall and other district property owners.  Most tax dollars fund debt service for growth; a modicum goes to "community healthline services."

"Five publicly elected hospital commissioners have the ultimate responsibility and accountability for the Evergreen district.  Citizens entrust their elected commissioners to approve major financial decisions and provide legal oversight of Evergreen."   But, do they?

R. August "Auggie" Kempf is an incumbent, running unopposed this year.  He's an 11 year commissioner for Evergreen  Hospital and he's asking the electorate for another 6 years on November 8.  If you live in Redmond or Sammamish, "Auggie" is your designated representative.  He runs an insurance, investment and financial planning firm in Redmond with probably the most financial skill sets of the five commissioners.  Mr. Kempf attended seven "Audit and Finance Committee Meetings" last year - more than four commissioners.

Mr. Kempf's financial expertise hasn't appeared to help the hospital pass annual state audits.  The State Auditor's Office (SAO) charged Evergreen in recent years with twice the serious audit "Findings," of Lake Washington School District and City of Redmond combined.   2009 was not a good year either.  The SAO reported 3 findings:
  • the hospital was paying contracted staff hourly rates almost double their employed nurses.  SAO recommendations to reduce contracted nurses resulted in an estimated $7.5 million in savings.
  • Evergreen collected $1.8 million in cash (deli, pharmacy, gift shop) in 2008.   SAO findings:  internal control weakness increase risk of misappropriation.  Status to be reviewed in 2010 audit.
  • "Evergreen Healthcare did not comply with competitive bid laws on two projects totalling $1,223,856 in 2008.  In 2009 the SAO determined corrective actions were taken.
The more distant Audit History during Mr. Kempf's tenure is equally poor:  Read More >>
 Five audits from 2003 - 2007 reported four serious "findings".
  • An audit in September 2002 identified missing checks.
  •  The 2003 audits contained two findings related to noncompliance with federal program and competitive bid requirements.
  • The 2005 audit reported one finding attributed to lack of adequate documentation of accounts receivable adjustments. 
  • The 2007 audit reported a finding related to competitive bid requirement noncompliance.   
According to the hospital governance:  "The ultimate responsibility and accountability for Evergreen district resides with our elected hospital commissioners."  Eight state audit findings in eight years* - not a good record.   Is this a record of responsibility?  of commissioner accountability?  

I chatted briefly with Mr. Kempf a couple times before meetings.   His emphasis is always on spending levy dollars to pay debt service.  He's shows no interest in levy support for community health and wellness. In 2005, voter's approved a $175,539,755  "Excess Property Tax Levy" to fund  Evergreen Hospital's Emergency Department modernization and the "Silver Tower."   Last year, the commission approved a $15 million free-standing Redmond ER.   So, now we have two Evergreen Emergency Departments within four miles of each other.  Is this responsible governing? 

The average commissioner stipend last year was $9,672 and provides ample funds to run a campaign or build a campaign website.

Two additional state audit results are scheduled for release after the Election.  The cards look good this election for a qualified write-in candidate.  Any candidate from Redmond or Sammamish with financial skills and passion for Evergreen could just be the ticket this November 8. 
 
Opinion by Bob Yoder
Editor, Redmond Neighborhood Blog
525-802-2523

*Mr. Brown was CEO during this period.
Washington State Auditor's Office website

4 comments:

  1. I can't name a specific individual. My ideal candidate with financial skill-sets from Redmond/Sammamish, passionate and knowledgeable about Evergreen Healthcare, responsive to the taxpayer, desires a community hospital rather than one built around specialists, encourages Open Government wherein meetings are taped and photos taken (as at Valley Hospital, Renton), allocates 50% levy monies to community health and wellness and 50% or less for debt service, and is strong enough to challenge the Administration appropriately and catalyze the Board from "cheerleaders" to governors.

    I'm not sure if it's realistic a qualified write-in can be found at this late date, but there are elections for 6-year terms every year or two. Candidates are currently spawned but the "Evergreen Advisers". "I talked to a respected business person from Redmond saying if "you had one problem or issue with Evergreen you wouldn't be considered for the program." Evergreen governance and community system is "inward." if not incestuous. Commissioners attend Advisor meetings once a month and since I've been covering Evergreen they replaced a staff member responsible for the program with Laurene Burton, Administrative Director, Community Affairs and Governance (and executive secretary to the CEO.) She is also the Public Records Officer. {She is very nice and cooperative.}

    Some background: As you know, Evergreen has had a strong influence over the Greater Redmond Chamber of Commerce over the years. Mr. Kempf is Membership Chair, an executive from Redmond's Columbia Bank was past-President and a lauded Evergreen Advisor, and a senior executive from Evergreen is current President. Dr. Appleton, Evergreen ER assist. Director, ran for Redmond mayor years ago. He now works for the V.A as of last year. Our Chamber has lost significant membership since Kempf took over and is repositioning under "One Redmond."

    [Written in response to an engaged Redmond citizen asking who I'd recommend for commissioner] B.Y.

    ReplyDelete
  2. Evergreen is being a good steward of their financial support at the expense of the patients.

    1. Cheryl Nail, Ch. Nursing Officer is leaving or has left. She is a staunch patient advocate who has fought to keep Evergreen's quality of care.
    2. There are questions about patient quality of care and nurse to patient ratios.
    3. It's hard to recruit quality nurses because Evergreen nurses are among the lowest paid, if not lowest, in the Seattle area.
    4. The Administration will not approve overtime to bring the ratios to minimal safe levels per national standards.
    5. Patients are very happy but aren't aware when safety is on the line.

    I've lived in the Redmond area for over 11 years and am passing this information on for friends who work there.

    The rumor mill is Evergreen will be purchased by a larger hospital in the area, either VM or UWAB.

    The midwives and their leaving is an issue now, too.

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  3. Regarding the staffing ratios, I spoke with Mr. Johnson, who, in addition to being our Chief Operating Officer, is also a nurse. Evergreen’s total staffing hours per patient day are amongst the best in Puget Sound. Additionally, per national benchmark data, Evergreen’s hours per patient days are better staffed than 75% of like-sized hospitals.
    -from Laurene Burton, Public Records Request Officer, Evergreen

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  4. Auggie won the election, unopposed, by 98%.

    ReplyDelete

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