Tahoe Forest Hospital District Board of Directors Reports Strong Financial Health of the District

The Tahoe Forest Hospital District Board of Directors issued a statement today in response to recent local media reports concerning the District's financial health, readiness for the Affordable Care Act (ACA), and an active review of the District's conflict of interest policy:

"Regarding the District's financial health and readiness for the ACA, the Districtís cash reserves are very strong. We have been working alongside the District administration and outside counsel for several years to prepare the District and our community for the inevitable and significant impacts of the ACA and other unfunded governmental mandates. We are expected to exceed earnings budget for fiscal year ending June 30, 2014 with earnings of about 2% despite a weak winter season, as operating expenses were successfully reduced to meet diminished needs.

"What's most important for the public to understand is that our depreciation expense is the largest single contributor to the change in our net earnings. The Board of Directors was prepared for this when our community overwhelmingly passed Measure C in 2007, providing for major updates to our physical plant. Depreciation is a non-cash expense that resulted when we began to modernize hospital facilities," clarified Board member Roger Kahn. Given our financial strength, the health system is still able to fund and purchase capital equipment throughout the year, and to continue to deliver the high quality health care our community deserves.

"The Board of Directors initiated an active review of the District's conflict of interest policies two months ago. At this time, there are no findings to report and subsequently no actions to take. When we have all of the information and our review is complete, the Board will make public the results of the review as well as corrective actions planned, if any are needed.

"We appreciate our community's demand for transparency from all public agencies and we are continually striving to improve our communications. We welcome your input to us individually, collectively, and through our public meetings."

John Mohun, Chair
Dale Chamblin
Roger Kahn
Larry Long
Karen Sessler, MD

To contact the Board, please contact Patricia Barrett, Executive Assistant,
(530) 582-3481 or pbarrett@tfhd.com.
Tahoe Forest Hospital District, 10121 Pine Avenue, PO Box 759, Truckee, CA 96160, (530) 587-6011, information@tfhd.com

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