Hospitals

MetroHealth trustees approve $26M in capital spending

MetroHealth System trustees on Wednesday approved spending nearly $26 million on new medical equipment, refurbishing public spaces like waiting rooms and patient units, building information technology infrastructure and setting up a fund to use during facilities emergencies.

CLEVELAND, Ohio — MetroHealth System trustees on Wednesday approved spending nearly $26 million on new medical equipment, refurbishing public spaces like waiting rooms and patient units, building information technology infrastructure and setting up a fund to use during facilities emergencies.

The initial capital request for this year of $25,949,970 does not include the cost of a new community health center, for which ground could be broken in the third quarter, said Eileen Korey, vice president of communications.

During their January meeting, MetroHealth trustees announced a dramatic financial turnaround in 2009. The Cuyahoga County-owned hospital ended last year with an excess of revenue over expenses of $52.4 million (including unrealized investment gains), compared with a mere $641,000 in 2008.

At that time, trustee Richard Hollington challenged his fellow trustees to use the financial breathing room to reinvest in MetroHealth’s facilities so it can continue to meet its mission–“saving lives, restoring health, promoting wellness and providing outstanding, lifelong care accessible to all,” according to its Web site.

The largest part of the initial capital request–$9.38 million–would be spent on equipment, from IV pump replacement to an upgrade for radiation oncology equipment to a medication management system for the Pharmacy Department.

Almost as much–$9.34 million–would be used to refurbish interior spaces at MetroHealth’s main campus. That means some rooms in the hospital’s patient tower could get a “substantial face-lift,” Korey said.

Another $4.7 million would be spent on infrastructure, mostly information systems upgrades or equipment replacements. And $2.5 million would establish an Emergency Capital Fund administered by MetroHealth’s chief operating officer, Angeline Marano, to take care of emergencies–like a broken water pipe–that would compromise patient care or public safety.

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MetroHealth CEO Mark Moran noted during the trustee meeting the importance of agreeing to a new three-year contract with the American Federation of State, County and Municipal Employees labor union, which represents nearly 1,900 employees, including staff in food service, laundry, transportation, environmental services, respiratory therapy and patient registration.

“I want to recognize an important step for the MetroHealth System going into the next year,” Moran told the trustees. “In January, we finalized a collective bargaining agreement between MetroHealth and AFSCME Local 3360, Ohio Council 8.”

The union agreed to a 5.75 percent wage increase over the three-year contract, according to MetroHealth. Last year, union members received a 3.5 percent wage increase, the health system said.

“The wage package is attractive for us. The health care settlement reflects the reality of sharing costs in the future,” Moran said. The changes “are going to help MetroHealth perform better in the coming three years. The union made a significant investment in our success.”