CCM Health posts strong 2020-21 performance, expands services in western Minnesota – West Central Tribune

MONTEVIDEO

— While its new Wellness Center has come under some public criticism, CCM Health has posted a financially strong showing for the year while also expanding its range of services.

“Impressive numbers,” said David Lieser, chair of the Chippewa County Board of Commissioners.

His comments came Tuesday as CCM Health CEO Brian Lovdahl and other members of the administrative team reported the results of the 2020-21 audit of the health system, which is jointly owned by the county and the city of Montevideo.

Highlights of the audit showed that the hospital and clinic operations had net operating revenues of $56.1 million. Net patient revenues increased by $10.56 million from 2020 to 2021, more than making up for an increase of $5.1 million in operating expenses.

The net cash impact from operations totaled $4.9 million, Chief Financial Officer Desi Anspach told the commissioners.

Like other health systems, CCM Health has dealt with the financial impacts resulting from COVID-19. COVID grants totaled $4.3 million, according to the audit report.

The CCM Wellness Center, which opened in June 2020 in a former grocery store, operated in the black, showing a net profit of $60,239, according to the report.

As a critical care access hospital, CCM Health is able to receive reimbursement for some of its operations at the Wellness Center that a private operator could not take advantage of, Lovdahl told the commissioners.

The center provides needed space for the health care system, and will likely play a larger role going forward.

He said CCM Health is eyeing the possibility of moving its rehabilitation services to the Wellness Center. There is a 2,000-square-foot area currently used for storage that could be remodeled.

Montevideo business owner Kevin Wald had addressed the commissioners last month with his concerns about the Wellness Center and its ability to repay the public investment in its construction.

Board Chair Lieser said he felt that some of the criticism has been unfair to CCM Health. He pointed out the center’s ability to operate in the black and the overall benefits the facility provides to the larger CCM Health operations.

Overall, Lovdahl said the health system has seen progress in a variety of areas during the past 18 months.

Most importantly, he pointed out that CCM Health added nine different providers during that period. They include four physicians, one general surgeon, one orthopedic surgeon, and a new obstetrician-gynecologist. A new family practice-obstetrician physician is to join the staff in September.

CCM Health also was ranked for a second time in three years as among the Best Places to Work in 2022 by the national organization Modern Healthcare. It’s one of only two health systems in Minnesota to be listed.

The Centers for Medicaid and Medicare Services also upgraded CCM Health’s rating for quality from two to four stars.

“All in all I think it’s been a pretty successful 18 months, but we’ll see where it goes,” said Lovdahl.

Lovdahl discussed the challenges ahead, which includes overseeing the construction of a new clinic for the federal Department of Veterans Affairs. Its completion is now scheduled for March 2023, or one year behind the original plan.

CCM Health and the VA reached a lease agreement for the new clinic more than two and a half years ago.

The lease payments were based on CCM Health’s expected costs for construction at that time. They have risen dramatically since.

What was once projected to be an overall project in the range of $4.95 million has grown by $1 million to $5.95 million, Lovdahl told commissioners.

Based on the rising costs, Lovdahl said the lease payments to CCM Health will fall below the break-even point for the first 10 years, but should reach that point during the second 10-year portion of the agreement. The VA is not open to adjusting the lease agreement, he said.

CCM Health continues to seek opportunities to return dialysis services, but is not optimistic about finding an outside company to replace former provider DaVita. The company ended its operations in Montevideo due to patient numbers that fell below what was needed, explained Patty Frank, chief operations officer and director of nursing for CCM Health.

Frank said it appears “very unlikely” that a new provider will be found at this time. She said she is continuing efforts to seek a new provider, but is also exploring other options.

There is a trend toward more in-home dialysis service. Frank said CCM Health has expressed its interest in working with a company to bring in-home dialysis care to the rural area.