Hospital commission approves $4.6 million bond, meets Thursday on budget
Published 4:37 pm Tuesday, November 3, 2015
The Snoqualmie Valley Hospital’s board of commissioners unanimously approved an additional $4.6 million bond at a special meeting Thurdsay, Oct. 22.
The bond is a general obligation bond that is not subject to voter approval.
Steve Daniel, Chief Financial Officer for the Snoqualmie Valley Hospital, said the hospital would need these additional funds to cover the potential impact of a change in national medical reimbursement coding requirements. The change is the adoption of a detailed standard of codes called ICD-10.
Daniel said it could slow down the collection of payments from insurers, Medicare and Medicaid, which would decrease cash balances and negatively affect the district’s ability to pay vendors. He recommended the district establish a line of credit to handle the risk associated with ICD-10.
Daniel also said there will be no new taxes associated with the bond. The interest rate will vary between 5 and 7 percent, and the bond will last through 2025.
The ICD-10, which covers 70,000 types of injuries and sicknesses, has received attention for some of its more colorful entries such as V91.07XA, burn due to water skis on fire, and V95.43XS, spacecraft collision injuring occupant.
The board meets again this Thursday, 6:30 p.m. to discuss the 2016 budget and approve a contractual closeout with Absher Construction Company, which worked on the new hospital. Commissioners will also discuss the settlements with the Department of Revenue and with real estate broker James Grace. The budget will be officially presented to the public at a hearing Thursday, Nov. 12.
