Ocean Beach Hospital CEO Larry Cohen

ILWACO — Since taking over in January, Ocean Beach Hospital interim CEO Larry Cohen — and a governing board that includes two new members — have pursued a number of ambitious projects, including a potential new clinic, an effort to boost employee morale, and a “telemedicine” program that could bring urgent care services to the clinic.

Negotiations with the nurses’ union are underway, and hospital leaders are also working to implement a federal program that could save money on drugs.

In a March 31 interview at his office, Cohen said the recent efforts should make the hospital more profitable, and better equipped to meet Peninsula residents’ medical needs.

In January 2016, two newly elected hospital commissioners, Ariel Smith and Madeline Moore, began their terms, and Cohen took over for former CEO Kendall Sawa, who left for a new job at Providence Seaside Hospital.

Also in January, hospital leaders decided not to renew the 2012 management agreement with the Vancouver-based PeaceHealth hospital system that made it possible for Sawa, a veteran PeaceHealth administrator, to assume leadership of OBH.

Sawa’s overhaul of the hospital’s finances and operations was largely successful, and led the board to seriously consider forming a more formal partnership with PeaceHealth or another hospital system. However, by the end of 2015, a potential affiliation deal with PeaceHealth had fallen through, and hospital leaders felt they had outgrown the management agreement, according to board Chairwoman Nancy Gorshe.

Hospital leaders are not currently considering any partnership deals with other health systems, Cohen said on March 31. For now, they are focusing on projects that will help OBH thrive on its own — including hiring a permanent CEO.

In March the board started a 90-day recruitment period for the hospital’s top job. Cohen, who is working under a one-year contract, said he has purchased a house here, and “absolutely” plans to compete for the permanent position.

In an April 4 phone interview, Gorshe said Cohen is “an excellent candidate.” However, in the interest of being thorough, the board will also advertise the job through industry groups. The hospital’s human resources officer will screen applications, and the board will interview any competitive applicants. Gorshe said they hope to have a permanent CEO by July.

“We think [Cohen will] be a very good leader, but we felt we should be responsible and make sure there isn’t anyone more qualified,” Gorshe said. She praised Cohen for quickly adapting to his new role.

“He knew where we were headed and he’s just continued driving the ship,” Gorshe said. “It’s been an actually excellent transition.”

There is no deal yet, but hospital officials are hoping to bring a new “telemedicine” service to the Ocean Beach Hospital Clinic.

“Basically, it brings urgent care to the Peninsula on an as-needed basis,” Cohen explained. Patients who have common, easy-to-diagnose conditions like urinary tract infections, colds and earaches would be able to talk to a remote doctor, via live video chat. Telemedicine is safe, Cohen said. Any potentially serious cases are referred to a live doctor.

Cohen said telemedicine could alleviate a long-running problem: the clinic consistently has a whole lot of patients, but not enough space, operating hours or doctors to treat them all. Telemedicine would free up local doctors to focus on patients with complex issues, and would make it possible for the hospital to offer appointments until 8 p.m., Cohen said.

“We have improved our access in the clinic, but we are still pretty comfortable that there’s a need that this would fill,” Cohen said. “We’re gonna catch the after-hours mother who has a kid with an earache after work.” Cohen hopes to have the program up and running by summer.

Soon, the hospital expects to start participating in the “340B Drug Pricing Program.” Administered by the federal Health Resources and Services Administration, 340B requires drug manufacturers to provide certain drugs to qualifying hospitals at significantly reduced prices.

According to the HRSA website, the program helps hospitals that serve a lot of Medicare and Medicaid patients “stretch scarce federal resources as far as possible to provide more care to more patients.”

OBH would benefit by paying less for certain types of drugs provided to the pharmacy, but the federal insurance programs will still reimburse the hospital at the same rate. That could result in a new source of revenue Cohen said, but it’s too soon to say how much money it could bring in.

OBH officials are working on the three-way contract between OBH, Peninsula Pharmacies — the local company that fills most subscriptions from OBH — and Sentry Data Systems, the company that will provide the technology OBH will use to participate in the program.

Cohen said that patients shouldn’t see any differences when the program goes live.

“There’s really no requirement for providers to change their prescribing habits, whatsoever,” Cohen said.

OBH leaders have been quietly talking about building another clinic in Ocean Park in collaboration with Jeff Harrell, co-owner of Peninsula Pharmacies, and the Port of Peninsula.

“That one’s not widely out there yet, as far as our plans. It’s in development,” Cohen said. He explained that an OP clinic would reduce drive-time for many existing patients, and could potentially capture more business from people who are currently leaving the Peninsula to seek medical care.

January hospital board minutes show that the commissioners discussed possible locations, including sites on Bay Avenue, near Ocean Park Pharmacy and Okie’s Thriftway Market. In February, the officials met with Harrell and a developer. OBH hopes to open the clinic by early 2017.

Gorshe said that under the current proposal, Peninsula Pharmacies would build a clinic and lease it to OBH. The Port of Peninsula would provide low-cost financing, as well as assistance with the planning stages of the project. The clinic would remain publicly operated, and independent, Gorshe said.

OBH is currently in union negotiations with the Washington State Nurses Association. Two sessions took place in March.

Cohen declined to provide details about the ongoing talks, but said that so far, “They’ve been constructive and amicable.”

An update on the WSNA website said union representatives had submitted a list of proposals to OBH management, and were waiting for a response. Two more talks are planned for April 5 and 12.

Cohen said the hospital is also working on an “employee engagement” study. Hospital staff were recently asked to take an anonymous survey. About 80 percent participated. Now, hospital leaders are evaluating the results and forming focus groups to talk about how to fix issues that came up in the survey, Cohen said.

“That’s very important to me,” Cohen said. “A happy workforce makes for happy patient-care deliverers.”