340B Drug Pricing Program Brings Some Relief, But BRHC Still ‘Stressed’

Monday night’s Sedalia City Council meeting began with an annual audit report of Bothwell Regional Health Center by CFO Steve Davis and CEO Lori Wightman.

Davis said there is one admission at Bothwell for every 51 clinic visitors. Last year, Bothwell saw 51,446 unique patients. Bothwell clinics had 147,000 visitors and a total of 3,105 surgeries were performed.

Davis noted that since qualifying for 340B, the hospital was in the black in FY24 for the first time in six years. “$4.3 million of that turnaround was 340B-related,” Davis told the Council.

The 340B Drug Pricing Program allows certain hospitals to purchase outpatient prescription drugs at a discount of 25–50 percent. The program was created by Congress in 1992 to help hospitals and clinics that treat low-income and uninsured patients stretch their resources.

To be eligible for the program, hospitals must meet certain criteria, such as treating a minimum percentage of low-income Medicare and Medicaid patients.

“We were able to save on our contract labor almost $1.7 million so we were able to hire and keep more,” Davis said.

The hospital also saved $1.2 million on employee health insurance costs.

(But) “when you look at the total net margin we still have a loss of $1.4 million compared to $6.1 million from a year ago. And that is due, in large part, to a decrease in federal funds we that received from FEMA and Covid-related (funds) $3.5 million,” Davis said.

“You can see as far as days cash, we are stressed, and that’s been that way for a long time, all except for Covid, when they gave us the accelerated payments,” he noted.

The aging hospital’s average age of its facilities overall is 21 years. “We have not been able to invest in our plant,” David told the Council. “Our main building was built in 1930.”

On the plus said, CFO Davis stated that Bothwell has very minimal debt. “Our lack of debt is one our best assets that we have going for us as a health facility.”

That was followed by a brief financial update from Financial Director Jessica Pyle.

She said that sales tax revenue is up almost $750,000 over last fiscal year. “We are over budget by $330,000,” Pyle said.

In January, Pyle said she would have comparison figures on the marijuana tax.

Franchise tax revenue is down significantly primarily due to the Charter video streaming class action settlement, adding that the City receives a payment of nearly $380,000 in April of 2023.

Gas tax revenue is down 42 percent, while transportation tax revenue is higher than last year, she said, due to the gas tax being higher by 8.2 percent. Vehicle sales are up 8.3 percent.

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Council then approved a sanitary sewer license agreement with the DNR for the new indoor arena currently being built on the Missouri State Fairgrounds, for access at the intersection of Clarendon Road and the Katy Trail.

Council then approved a three-way stop sign at 10th and Mitchell Road on recommendation by the Citizens Traffic Advisory Committee after they received a single request for more stop signs there.

Under Community Development, Council considered a fee schedule amendment for plumbing certificates.

The City is forming a Plumbing Board which will issue a Master Plumber Certificate at $5 annually and a Journeyman Plumber certificate for $1 annually.

Under Public Safety, Council considered the addition of six more firefighters to the Sedalia Fire Department over three shifts. According to Fire Chief Matt Irwin, who requested the hiring, said that it will amount to two additional personnel responding to structure fires.

Council previously approved $366,609 for this increase in its budget.

However, a SAFER grant that would have paid for part of that amount was submitted, but ultimately not approved.

Two new liquor licenses were approved by Council, including:

*Kristy Long dba Wildlife Ridge Winery, 34751 Miller Road, Smithton, for a special event for Central Bank of Sedalia’s Christmas party at The Foundry, for $15.

*Stacy Barnes dba WAM KWB TLLC, 301 East Main, Cole Camp, for a special event at Jammin’ Nuggets, 115 South Ohio, for Witches Night Out, scheduled for Wednesday from 5 to 8 p.m., for $15.

One renewal was approved.

*Paul Beykirch dba County Distributing Co., Inc., 1800 Eagleview Drive, for wholesale beer, $50.

Council then adjourned to closed-door session for discussion about legal advice, Real Estate, and negotiated contracts.