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Finance Committee Delays Decision On Hicks' Recommendation On Nunally
posted November 18, 2008

Bill Hicks, director of the Southside/Dodson Avenue Community Health Centers, on Monday night recommended that the centers' finance committee not approve an increase in the value of the OB/GYN contract for Dr. James Nunally from $390,000 to $450,000. However, he said the board should not switch to an alternate provider plan.

Mr. Hicks stated, "An increase can't presently be supported."

The finance committee decided to refrain from making a final decision regarding the request. They agreed that more information was needed before they could vote.

Board member Jim Worthington said, "Our objective is to get competent service as cheaply as possible." He stated that until the board members have data they are absolutely comfortable with and is a true picture of the situation, he does not think the board is prepared to do anything.

In his report to the committee, Mr. Hicks cited three main reasons for his recommendation: the health centers have experienced significant operating deficits for the past three fiscal years; total encounters in obstetrics have declined each year over the past four fiscal years; and
revenues from provision of obstetrical services have declined each year over the past four fiscal years.

Dr. Nunally is currently the only OB/GYN for both centers, where he has served since 1995.

Dr. Nunally's contract calls for him to work at the centers for up to 20 hours per week as well as provide a fulltime midwife for the centers.

He had requested a raise from the current $390,000 per year to $450,000 per year. His current contract was up in October.

Mr. Hicks' report discussed other options that the committee could potentially look into, such as hiring more fulltime midwives instead of an OB/GYN or hiring a staff OB/GYN. Mr. Hicks advised that both would be unacceptable.

He argued that the cases seen in the clinics are often complex, and midwives would be unable to handle them competently without an OB/GYN. He stated, "We have to have physician coverage because of the cases we see. It is better, even essential, to have physician assistance because of the cases we see."

Mr. Hicks said a fair market analysis provided by Erlanger Medical Center's Kevin Hendrickson showed that hiring a staff OB/GYN would be much more expensive than the current contract.

Dr. Willie Mae Hubbard, committee chairman, argued, "When you're working for a clinic, psychologically you know you aren't going to make as much as you would in a private market setting."

She stated, "We don't know what it would take to recruit a physician for health centers who would do what we need and what it would cost."




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