San Juan Hospital announces new doctor, says financial picture is looking much better

Dr. Zeb Crofts will return to San Juan County in August to begin a family practice. The announcement was made at the May 28 board meeting of the San Juan Health Service District.
Dr. Crofts, a Blanding native, recently completed his medical training and is eager to return home and begin his practice. Officials stated that he will likely see patients at the clinic in Blanding three days a week and patients at the clinic in Monticello one day a week.
Officials at the district are ecstatic that Crofts is returning home. They state that he has been successful in medical school and anticipate that he will have a successful career in San Juan County.
In other matters at the May 28 board meeting, the board approved a change in the name of the clinics operated by the district. The Blanding Clinic will now be called San Juan Clinic – Blanding, while the clinic in Monticello will be called San Juan Clinic- Monticello.
Officials state that the name change will make the clinic names more consistent and logical.
Despite facing a number of challenges, Health District CEO Clayton Holt explained that the district is doing much better.
“Financially, things look good when compared to 2014,” said Holt. “The good news is that 2014 was much, much better than 2013.”
“Accounts receivable was up to $6 million at one point and it is now about $3.7 million,” said Holt. “In the past, we had three or four employees working on clinic billing and one on hospital billing. Now the A/R for the clinics is about $150,000, so we are doing much better.”
In addition, Holt explained that the district cash reserves have grown to $2.5 million. “With a $2.5 million cash balance, we are in much better shape than we have been in quite awhile,” he said.
Discussing the challenges, Holt added, “One concern is patient volume. This is an area we need to focus on and we are making strides.
“In the first part of 2015, we have half as many providers as the first half of 2015, so the volume drops off,” said Holt. In 2014, three providers left the district.
Admissions to the hospital are down, emergency room use is flat, and the number of observation beds are down.
Holt explained, “If your patient volume is cut in half, you are going to lose half of your ancillary services.
The district is focused on encouraging area residents to get their regularly tests, including colonoscopies.
Analyzing the customer base, Holt said that the district will focus on customers east of Monticello to start. “We lost a sizable Colorado population but feel that is coming back,” he said.
The health service district will begin the process of setting up a foundation that could be useful in fund raising efforts, including capital projects.
Holt suggests that it may be helpful to define the new foundation a little more broadly so it could be used for emergency services efforts, not just for the health service district.
The basic structure of the San Juan Education Foundation, which is focused on higher education efforts in San Juan County, is the model that will be followed.
The board discussed property tax issues in anticipation of set a tax rate at the June meeting. While the final property values are not yet set, there is likely to be a drop in the tax base by up to $176 million.
Total property tax collections were $934,000 in 2014. If the tax rates stay the same, based on projections, the property tax collections in 2015 would be $768,000. This is a $168,000 drop.
Increasing taxes to the certified rate would generate the same $934,000 as 2014, but it would increase the rate above the .001 percent rate approved by voters.
If the rate is raised to the .001 percent that is approved by voters, it would generate about $810,000.
Holt explained his concerns about the process of setting a tax rate. “From a financial perspective, our primary concern is collecting the tax that we need to be financially stable. However, our constituents are concerned if they feel that we are increasing their taxes to support a failing institution.”
Holt recommended that the district “stick with the current rate and let that roll forward. From a business standpoint, I think that is do-able,” he explained.
The board discussed a number of capital needs. Holt said, “There are some things that are critical to our operation that may need some consideration soon. We need to get a full grasp of what the real need is.”
The district has completed a number of projects in recent years, including building a new clinic, and adding a surgical suite at San Juan Hospital.
The district is pursuing a number of partnerships with other organizations and agencies. This includes Hospital Week, which included visits by Monticello Elementary School students, a free screening clinic for incoming kindergarten students, and a sports physical program at San Juan High School.
In addition, Holt reported on a possible joint project in Blanding that would include San Juan Public Health, San Juan Counseling and the San Juan Clinic – Blanding. Lynn Stevens is heading up an effort to build a new building that could be used by all three groups.