Why is this project necessary?
The hospital has several structures that were built in 1957, 1969, and 1975. These structures house our inpatient services and our physician clinic services. The electrical, mechanical, and plumbing have had minimal updates over the past 30-50 years. Furthermore, building codes as they relate to hospital and clinics have changed.
The economy is tough right now. What if we waited?
Building prices will go up after the economy recovers. Currently we have bargaining
power to keep supply and labor costs down because the construction industry is hungry for work.
But $28.5 million, isn’t there a less costly alternative?
We evaluated the cost of updating the electrical, mechanical, and plumbing of our older structures and the costs were still significant. Current services would be restricted during remodel and we still would not resolve our top three challenges:
- replace aging semi-private patient rooms with larger private patient rooms and private bathrooms.
- Create more medical office space for physicians, patients and growth of services.
- Create more parking on the hospital campus.
How confident are you that the hospital and clinic can repay the loan without tax support?
The facility posted $2.7 million combined profit in the last three years and paid off all its debt early. Previously, the hospital was making $112,000 in monthly debt payments. The hospital no longer has this monthly obligation and can use the cash to service the new debt. With the new project, the hospital’s monthly payment
will only be $55,000 per month (based on net estimates of Medicare/Medicaid’s reimbursement for depreciation and amortization). This is why we can make our much needed improvement in infrastructure with no tax increase.
Because the healthcare industry is constantly changing, it is imperative that the hospital change with it. |  |
| More Information |
 |
|