Alcoa commissioners take extra measure for Blount Memorial board nominee, hold Q&A

Alcoa Board of Commissioners postponed appointing a new member to the Blount Memorial Hospital Board of Directors Tuesday, March 14. The hospital board’s nominating committee put forth Matt Haralson, former chair of Blount Memorial Foundation and attorney with Kizer & Black.

The committee provided Haralson’s nomination in lieu of the Alcoa board voting down the reappointment of Francis Gross in February. If appointed to the hospital board, Haralson said he’ll resign as a foundation board member immediately.

On Tuesday, Alcoa commissioners asked Haralson a round of questions to consider before they vote on his appointment Friday, March 24 .

Editor’s note: The Daily Times has paraphrased questions and answers for brevity.

Mayor Tanya Martin: This is a non paying job. What makes you want to be on the hospital board?

Haralson: It is a volunteer position. And right now more than ever, why would you want to step into something like that when the hospital is operating amongst controversy? My grandfather was recruited here by ALCOA, was one of the first physicians to practice at BMH and was chief of staff there. My uncle was also chief of staff. Our family has a history with the hospital, and it’s important to us.

I’ve served on the foundation for the hospital board for the last several years, once it was reconstituted. And for the last two years, I have been chair of that board.

It’s important to have a healthy, functional hospital in town. I think our community deserves it, worked hard 75 years ago to build the hospital and has worked hard in recent years to keep it. It’s something I feel called to do to keep it functioning properly.

Vice Mayor Tracey Cooper: What kind of qualifications do you bring to the table that nobody else has?

Haralson: I’ve never worked in a hospital. I don’t know if that’s a plus or a minus. I’ve served on various boards in town. Since I started practicing law, I started volunteering on boards.

A lawyer can bring a unique skill set and different way of looking at things to a board. I know the hospital has lawyers on staff and its own outside council, but when you’re talking about a board member that has a vote, it’s different.

I have certainly not been doing the hospital’s work, but I’ve been working closely with the hospital over the last several years. I have a good understanding of where they are right now and the struggles they are facing.

Commissioner Josh Blair: It’s no secret the hospital is in pretty bad times right now financially. With you being appointed to this board, what is a plan of action you would like to see pull this ox out of the ditch?

Haralson: I think it’s a little early to give specifics. Maybe a couple of fresh faces is what the board needs right now — fresh ideas, thinking outside the box, not continuing to do things the way they’ve been done for the last 20 to 30 years.

The hospital over the last several years has really been hit hard. When COVID-19 hit, anything that wasn’t deemed life saving was put on hold for a while. That’s a significant revenue stream. At the same time, the hospital has faced a dramatic increase in cost. A box of gloves went from $4 to $18. And at the same time, (Centers for Medicare and Medicaid Services) hasn’t adjusted reimbursement rates. Private insurers haven’t changed what they’ll approve for a procedure or prescription.

When we look at the restaurants in town, when the price of chicken went up, when the price of flour went up, we saw the changes in their menu prices. The hospital can’t do that, so you’ve really got to think outside the box and be creative. I don’t know what that looks like right now, and I won’t until I get in there and start digging around. I’ve seen very little detail in hospital finances, so I don’t want to make any specific promises. I think the hospital is considering a real estate investment trust. It’d probably be a good idea — if the details and numbers are right — to get us over the hump.

Commissioner Steve Biggar: And you believe it needs to remain a community-type hospital?

Haralson: I believe it’s important to keep it as an independent community hospital. I can’t promise I’ll vote one way or another. I was thinking about that on the way over here, and it reminded me of George H. W. Bush who said, ‘Read my lips, no new taxes.’ And he had to raise taxes. He had no idea what was on the horizon. Asked later if it was a good decision, he absolutely stood by it. He made a promise that he couldn’t later keep because the situation changed.

I can tell you I will do everything in my power to keep the hospital as independent as possible, provided we can continue the same standard of care.

Biggar: I wanted to know if that’s what was in your heart.

Haralson: My grandfather would probably come back and haunt me if I made a quick decision to try and sell the hospital or bring in outside management. It’s not what I think I want to do. I’ve worked with this hospital enough now, seen the impact and what it means to the community to be a community hospital.

Commissioner Eddie Hall: I think it’s safe to say that we all feel the same way. Do you support an independent audit of the hospital’s finances?

Haralson: Yes I do.

Martin: How will you represent the city of Alcoa?

Haralson: As I would the entire community. If I, my neighbor or anyone around me needs a hospital to go to, I want a hospital that we’re proud of, that we can rely on and that is providing quality care when we need it. I don’t want to drive to Knoxville to get that care. I want to keep it here, and I think the best way to do it is to continue down this road. The partnership with MAYO is a great way to keep our level of care where it is.

Martin: I think any city is only worth what it is able to provide citizens.

Blair: The quality of care at Blount Memorial is second to none. One of my big concerns is that you cherish the number of jobs. One of the biggest fears internally is losing jobs — from people that have been there 20 plus years. We owe it to those people to put that at the forefront. If we don’t save this hospital, we’re going to lose 2,800 jobs. In a community this size, that’s going to hurt. That’s like Arconic or Denso packing up and moving.

Haralson: Agreed.

I have friends, family, clients that have worked or still work there. When I go into the hospital, it’s comforting to see people I know providing care. Jobs will be a concern, for sure.

The Daily Times: One concern from hospital administration for appointing new board members is a learning curve they undergo. One board member said it took him three years to learn the workings of the hospital. Do you expect to have that learning curve?

Haralson: A hospital is a business, so some of it is not going to require a learning curve, but there will be parts that do. I couldn’t tell you whether it’d be two, three or four years. I anticipate even with a few fresh faces, that board will continue to be able to do its job.

TDT (during a phone call on Wednesday): Lack of transparency from board appointees to their appointed body has been a concern I’ve heard from political leaders. How will you approach transparency?

Haralson: If it’s a community hospital, we have to be open with the community. I’ll be open with the Alcoa board as much as I can.