Frequently Asked Questions March 18, 2008

Q. What caused Haywood Regional Medical Center to lose Medicare/Medicaid funding Feb. 24?

A. After a series of three surveys and insufficient corrections from Jan 31 –Feb 24 The N.C. Division of Health Services Regulations terminated HRMC’s provider number for Medicare & Medicaid funding.

Q. What is the hospital doing to regain certification?

A. HRMC hired the highly recommended and qualified Cincinnati-based Compass Group. The Compass Group completed an assessment of HRMC, provided key personnel, and is now working with current staff to formulate corrective action plans to restore Medicare certification. The Compass Group and hospital officials are confident the hospital will be prepared to pass a full CMS survey by March 31.

Q. What are the action teams?

A. There are twelve multidisciplinary action teams in place. Each team includes representation from the Compass Group, physicians and HRMC staff. The twelve teams are addressing the following: 1)Governing Body 2)Restraints/Seclusions 3)Patient Grievance Process 4)Medication Administration 5)Assigning Competent Staff 6)Quality Oversight Program 7)Nursing Service 8)Equipment and Supply maintenance 9) Pharmaceutical Care 10)Respiratory Care & Staffing 11)Infection Control Program 12)Inpatient post-anesthesia evaluation.

Q. How are the teams preparing for the survey?

A. Each team is at work analyzing the processes that surround each area – scrutinizing every detail, piece by piece. The activities will likely result in one or more of the following outcomes:

· New or revised policies and procedures

· Education & training for staff, physicians, managers and every hospital employee

· Physical or functional changes to support the new processes

· Monitor mechanisms to detect when processes are going well and to alert when problems emerge

· An outstanding model community hospital for patient safety and quality systems.

Q. How can the hospital afford to continue operating without its Medicare/Medicaid coverage?

A. The hospital is using reserve investment funds, which total about $19.2 million to offset lost operating revenue. Projections through July show about $6.9 million remaining.

Q. What do people with Medicare or Medicaid coverage do meanwhile if they need healthcare?

A. Medicare & Medicaid patients can still see their own physicians as usual. HRMC continues to provide the following services to Medicare & Medicaid patients: radiology and imaging services, emergency and urgent care services, labor & delivery services, rehabilitation services, health & fitness center. HRMC Hospice & Home Care Services are not affected by the CMS ruling. Private insurance providers are listed on website.

Q. When will HRMC regain its Medicare/Medicaid contract?

A. HRMC will be prepared for a full CMS survey by March 31st. CMS will arrive unannounced for an initial survey to review the deficiency areas. A second full survey of the entire hospital will follow. It is possible for both surveys to take place within 30 days after March 31^st. The timing of the surveys is not guaranteed and is up to CMS. Once the hospital passes the second survey, funding will be reinstated immediately.

Q. What staff and position changes have occurred?

A. David Rice resigned on Feb. 25 and was replaced by interim CEO, Alton Byers. Dr. Nancy Freeman resigned as HRMC Board Chair Mar.7 and Glenn White was elected Board Chair Mar. 13. Dr. Henry Nathan was appointed by the County Commissioners to fill the HRMC Board vacancy. Throughout the re-certification and training process interim Compass Group executives are filling the following positions: Chief Medical Officer: Robert Riehle, M.D. Chief Nursing Officer: Krys Candelaria, RN, MS.: Emergency Department Director: Howard Lull, MHA, BSN, RN; Human resources Director: Ed McLaughlin

Q. What about the future of HRMC?

A. Compass Group CEO, Kate Fenner stated that at the end of this process HRMC will be a “phenomenal” hospital. HRMC’s Board is engaged in the process of searching for a new CEO. A Future Directions Committee comprised of County Commissioner, Kirk Kirkpatrick, Hospital Board members, Mark Clasby (committee chair) and Henry Nathan, M.D., physicians Alfred Mina, M.D. and Richard Harsch, M.D. and HRMC interim CEO Alton Byers will thoroughly explore options for future organizational structure alternatives and affiliations.

***more Information on www.haymed.org***