Maverick County Hospital District suffers another Financial Loss during September 2016
By: Miguel Munoz, Eagle Pass Business Journal, Inc., Copyright 2016
The Maverick County Hospital District Board of Directors held their regular meeting on Tuesday, October 25, 2016 at the Second Floor Conference Room of the District’s building located at 3406 Bob Rogers Drive in Eagle Pass, Texas, welcoming newly sworn-in Board of Director Adolfo Olivares with the financial news that the Hospital District sustained a $105,808 loss during the month of September 2016.
Maverick County Hospital District Financial Officer Nestor Bonilla presented the Board of Directors with the September 2016 Financial Report, advising Board members that the District suffered another financial loss of $105,808 for the month of September 2016.
Board member Ricardo “Rica” Calderon questioned CFO Bonilla to explain to the Board how had the Hospital District sustained the $105,808 financial loss during the first month of the new 2016-2017 Fiscal Year, which normally presents a positive result annually for this month. Nervously, CFO Bonilla answered Calderon’s question by stating that the $105,808 loss was attributed to the very low collection of ad valorem property taxes, particularly delinquent property tax payments, during the month of September 2016. Bonilla reported that the total amount of property taxes collected by the Hospital District during September 2016 was only $9,270.
Board member Calderon noted that generally the best financial months for the Hospital District are from September through January when the District collects over $2.3 Million in property taxes.
The $105,808 financial loss for September 2016 simply means that the Hospital District’s expenses were greater than its revenues received during the month.
As customary, Board member Calderon was the only Board of Trustee requesting individual reports from the Hospital District’s Program Directors such as the Physician Specialty Clinic, Medical Financial Assistance Program, and the Ryan White HIV/AIDS Program.
Board member Calderon advised his fellow Board colleagues and administration that recently a legal dilemma is surfacing with the collection of Maverick County and Maverick County Hospital District delinquent property taxes as Maverick County’s new tax collection law firm of Perdue, are charging 15% on the delinquent property taxes collected while their contract only provides they collect 13.5% attorney’s fees. The legal conundrum is that Maverick County’s delinquent property tax judgments in state District Court have the 15% attorney’s fees instead of the contracted 13.5% fee, questioning the legality of these defective judgments. Calderon noted there are now hundreds of defective delinquent property tax judgments signed by the state District Judges, but most Maverick County taxpayers are unaware of this defect and entitled to a Corrected Judgment and a refund of the 1.5% excess attorney’s fees collected by the Maverick County tax collection law firm. Calderon advised the Board that these defective tax property judgments may affect the Hospital District’s collection of taxes during its most critical months of September to January while affecting the District’s financial situation. General Counsel Alex Fuller stated that he was unaware of this legal situation and would look into it, thanking Calderon.
While questioning Physician Specialty Group Director Monica Nandin, Board member Calderon elicited information that there are over $1.2 Million in accounts receivables due to be collected by the Hospital District, but the District anticipates collecting only $700,00 of those funds while writing off (losing) the remaining $500,000 owed due to poor paying patients and indigent patients. Nandin stated that the Hospital District has hired a medical bill collection agency to assist the District collect more outstanding medical bills or account receivables. Even with the collection agency, the Hospital District projects writing off the $500,000 in account receivables.
In other Board action, the MCHD Board approved to reject the proposed amendments to its Hospital District Bylaws upon the motion of Board member Ricardo “Rica” Calderon and second of Board Vice-Chairman Ronald Hixson. Calderon eloquently stated that the proposed amendments to the District’s Bylaws “was like placing the cart before the horse” because the Board had previously approved to ask State Representative Poncho Nevarez and State Senator Carlos I. Uresti to assist the District change its founding state legislative statute at this upcoming 2017 Texas Legislative Session. Calderon stated that the Hospital District would best be served getting its state statue changed first before making any amendments to its bylaws. Board Secretary-Treasurer Humberto Duran asked General Counsel Alex Fuller if Calderon was correct, which Fuller replied “Yes.” Calderon noted that once the state statute is changed, the District can proceed with its amendments to its bylaws in order to be consistent with the new state statue. Board Chairman Juan Manuel “Chuco” Farias argued that he preferred approving the amendments now, but backed down when he noticed the Board members agreed with Calderon’s motion to disapprove the amendments until the state statue is amended. Calderon’s motion passed unanimously.
The Board also approved minor changes to its Hospital District Employee Handbook and its Employee Travel Policy.
Also on the Agenda was an Executive Session in consultation with Legal Counsel regarding “the Discussion and update with possible action regarding the Uncompensated Care” Agreement between the Hospital District and Fort Duncan Regional Medical Center, as well as the discussion and update with possible action regarding the Maverick County Hospital District Medical Office Building and Fort Duncan Regional Medical Center. Upon returning into Open Session, the Board took no action and adjourned the meeting.
MCHD Board Secretary-Treasurer Humberto Duran was presented a Plaque of Appreciation for his eight years of service on the Board of Directors and a gift since this was his last Board meeting due to him not seeking re-election in the November 8th General Election.
