Upon request by The Salem News, Salem Memorial Hospital sent a press release on Monday at 3:00 p.m. regarding decisions made at a special board meeting held Friday, Dec. 8
Salem Memorial Hospital Board of Directors held a special meeting on Friday, Dec. 8, 2023 at 5 p.m. Present at the meeting were Ray Bruno, Chairman; Mike Swyers, Vice-Chairman; Wanda Tatom, Secretary; Dr. Leigh Ann Price, Director; Zach Moser, Director; Judy Thompson, Director (attending by phone); Mark Weaver, Hospital Attorney; Jason Edwards, Interim CEO; Doug Hoban, CFO; Ashley Owen, CNO; and Hannah Harris, Executive Assistant. Also attending the meeting were Dr. John Demorlis, Medical Chief of Staff; Jodie Gorman, Human Resources Director; Jennifer Hugenot, Human Resources Assistant; Jean Nyberg, FORVIS; and Andrew Wheeler, MHA.
Jean Nyberg, Auditor with FORVIS, presented the board with preliminary findings to include a significant change in the previously reported end of year financial bottom line. Previously the board was presented with a loss of $317,000 for the end of the 2023 fiscal year, however after the preliminary audit adjustments and corrections were made - Salem Memorial Hospital Board was presented with an actual loss of operations of $2.5M. While this is not the final audit report, the significant change brought about discussions and hard choices for the SMH Board of Directors to make in order to continue to keep the hospital operational in the long term.
This loss is similar to the 2019, 2020, 2021 and 2022 fiscal year audit results showing a loss of operations totaling $279,000 in 2019; $1,298,000 in 2020; $1,180,000 in 2021 (excluding extinguishment of debt); and $1,668,000 in 2022.
After much discussion, the board of directors voted to make necessary changes. Reduction in certain service lines will begin in the coming months allowing patients involved with those services to be presented with options for continuity of care by transferring to surrounding area services. No consideration was made to enact a reduction in force, therefore employees affected by discontinuing these service lines will be offered transfer to other areas of the hospital.
Other motions were made to review all contracted service agreements and to explore affiliations with other Health Systems which passed with a majority vote.
