By Alberta Stojkovic
For the Sentinel
Morrow County Hospital (MCH) President Mike Hyek reported at the April 25 board meeting on the status of Ohio Public Employees Retirement System (OPERS) compensation related to a 2019 agreement between MCH and OhioHealth.
Due to the agreement signed in 2019 with OhioHealth by MCH board members, 31 associates were impacted with the transition from MCH to OhioHealth.
Hyek said at the time of the transition, the 31 associates should have been considered “carryover associates” as defined by OPERS. The associates should have been offered the option to stay with OPERS or opt out within 90 days. Since the opt-out choice was not offered because of an oversight, OPERS regulations required the associates’ participation in OPERS, and MCH has an obligation to pay unreported OPERS contributions of around $800,000 for the associates.
The MCH business office, the OhioHealth payroll team, and OPERS representatives worked to verify the amount of time the 31 associates worked and their gross pay to calculate the correct amount owed to OPERS on their behalf.
Hyek said around $800,000 will be paid to OPERS by MCH; of that, around $750,000 has already been paid. Around $750,000 will be reflected in the 2022 MCH financial statements, and about $50,000 will be reflected in the 2023 hospital financial reports.
Some board members questioned if this should be the hospital’s responsibility. Hyek said although arguments could be given for other solutions, according to OPERS regulations, it is ultimately the responsibility of the hospital to pay the settlement. There was general agreement after some discussion.
In other business, MCH board member Jennifer Williams reported on progress with the negotiation group’s ongoing discussions with OhioHealth officials. The goal of the negotiations is for MCH to become a full affiliate hospital of OhioHealth. The committee includes MCH board members Joe Dryer, Lois Stauffer, Williams and County Commissioner Tim Siegfried.
OhioHealth Senior Vice President Cheryl Herbert spoke to the board remotely to say she will not be at board meetings since MCH has “officially entered into negotiations with OhioHealth.”
“We are underway with negotiations, and I feel good about that,” Herbert said.
Williams said the negotiating group’s goal is to be open and transparent. However, some facets of the negotiations will be kept within the committee at this time. Depending on the progress of negotiations, additional details may be made public by late summer or early fall. Both MCH and OhioHealth are working to perform due diligence as they continue in negotiations.
Williams estimated they are 80% close to an agreement on major items. Both parties have agreed on the importance of open communications after the stalemate of the 2019 agreement.
MCH has engaged Bricker and Graydon as attorneys in advising on negotiations. The firm, formerly Bricker & Eckler, represented Pickaway County and the City of Circleville when Berger Hospital became an OhioHealth affiliate.
Alberta Stojkovic is a correspondent for The Morrow County Sentinel.
