NTMC approves purchase of Anwar’s former office [Gainesville Daily Register, Texas]

July 20--GAINESVILLE -- North Texas Medical Center expanded its holdings this week when the board of directors voted to approve an interim operating agreement and purchase for Dr. Khawaja Anwar's Grand Avenue medical practice.

NTMC Interim Chief Executive Officer Randy Bacus said the agreement includes the purchase of the clinic's rural health clinic provider number, records for approximately 2,500 patients, the contents of the office and a medical office lease for the building.

Bacus said the purchase is "equivalent to (buying) a franchise" and that it includes "quite a bit of equipment."

Included in the board members' information packet was an inventory of items in the medical office including supplies, office furnishings and fixtures.

The hospital is set to pay $100,000 for the practice -- a price that some considered a bargain. Board member Dr. Roane McLaughlin noted that Anwar's original asking price was $250,000.

Prior to votes on the consent and action items, Barry Couch of D & O Exposures spoke to the board about potential litigation during a presentation about insurance needs for healthcare providers and board members.

Couch used an electronic data presentation to explain health care director and officer liability issues.

He pointed out that board members are vulnerable to legal action from a long list of sources including malpractice lawsuits, IRS scrutiny of a facility's not-for-profit status, insolvency and from physicians and other hospital employees.

He said many charitable organization board members are protected from liability by state laws, but that health care board members often are not.

"Health care does not enjoy some of these immunities," he said, due to federal laws.

Because hospital staff and board members are vulnerable to lawsuits, it is necessary for hospitals to purchase insurance to protect staff and board members, he said.

Lawsuits can come from various sources including disgruntled former employees whom Couch described as "a leading source of (legal) action."

Other sources of claimant action include lenders, creditors and bondholders, physicians, regulatory agencies such as the Office of the Attorney General, vendors and community groups and donors, he said.

He also advised the board to take an active role in preventing claimant actions.

"Don't just throw insurance at the problem," Couch said. He told the board to study and understand "what the better boards have done (to protect themselves)."

This includes preparing for potential problems and using effective risk management strategies, he added.

The board also voted to approve a slate of consent items including the minutes of the June 21 meeting, financial statements for June, a quarterly investment report, and the reappointments without status change of Elliot Cohen, MD; Tsion Haileselassie, MD; and Robert Lufkin, MD as well as appointments of allied health professionals Sheila Ross, NP and the resignations from the medical staff of James Howard, MD; Agha Abbas, MD; Kimberly Prough, PA and Terry Peery, DO.

A list of action items included the unanimous approval of the purchase of a certificate of deposit.

The board voted to purchase two $1 million CDs. The hospital will purchase a $1 million CD from First State Bank and a $1 million CD from Muenster State Bank. Both CDs will offer 1 percent annual interest rates. Board member Diana Eichenberger abstained from the vote.

Next, the board approved a capital expenditure request for the purchase of a triple infusion pump.

According to Gayle Prybutok, NTMC chief nursing officer, the pump is required to replace a broken infusion pump for which repairs are no longer cost-effective.

It will also allow medical staff to administer three medications at once, Prybutok said.

The total cost of the pump is $5,900.

Information items included a report from McLaughlin about the hospital's quality committee.

She said the committee met earlier this month to discuss several items including a quality management consultation report from Mellott and Associates regarding the NTMC quality program.

In her nursing department report, Prybutok discussed efforts to build on the success of a post-discharge follow up program designed to measure patient satisfaction.

NTMC Director of Marketing Gayla Blanton talked about the successful junior volunteer program. Blanton presented a brief slide show of the students in various departments.

She noted that 20 volunteers completed the program this year.

She said the participants were all top students in their high schools. Most of the students are interested in health care careers, she said.

In his chief of staff report, Dr. Mark Gibbs said physician satisfaction is increasing.

NTMC Foundation Director Dennis Noblett noted that the foundation bought a newborn hearing screening device for the women's center. The device cost $18,621 and was purchased with funds from one of the foundation's accounts and with profits from the foundation's Special Edition.

He also reminded the board about sponsorship opportunities for the foundation's 14th annual Halloween Hustle.

In his report to the board, Bacus talked about the monthly human resources report, stating that employee turnover is declining. The report reveals that the turnover rate for June was 7.1 percent.

Two and half years ago, the turnover rate was 29.2 percent, he reminded the board.

He said the current rate is "very, very good" when compared with hospitals of comparable size.

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