Several members of the Hospital Facilities Commission said Monday afternoon they were eager for decisions about health care in Allen County to pick up speed and that the process seemed to be languishing.
“I have a sense things aren’t moving ahead,” said commission member David Toland, his frustration showing.
County Commission Chairman Gary McIntosh, who monitored the HFC meeting, said commissioners had to exercise patience.
“We have to look at all the scenarios before we make any decisions,” McIntosh said, including whether to remodel or build anew, how to finance whatever is done and what form management would take.
Toland pressed the issue: “It seems like there are lots of things that need to move forward now,” specifically mentioning management. “It’s dangerous to raise expectations and not be able to meet them.”
County commissioners said when 2010 dawned “this is the year of the hospital,” but little visible change has occurred other than for them to appoint the citizens advisory group and hire Hospital Facilities Group of Wichita as their consultant.
“There are a ton of variables, with the key one being the (HCA) lease,” said Mark Boyd, another HFC member.
McIntosh said the linchpin was a decision on the structure. “Until we decide that — whether to remodel ACH or build a new hospital — we can’t decide anything else,” including management.
Answers to key questions may start falling into place sometime in July. A meeting scheduled for July 7 with the Hospital Facilities Commission and Hospital Facilities Group was canceled at this morning’s county commission meeting.
Consideration will include management and whether or how HCA might be involved. If the county takes control, HCA’s lease will have to be bought out to end its lease agreement, but it then could come back on board in a management role.
Another decision lying in wait is financing. Options include revenue bonds, with debt service from money generated by the hospital; perhaps some form of USDA loans and grants; and tax support, with the options property or sales taxes.
CHARLES HEATH of the U.S. Department of Agriculture told HFC members Monday afternoon that federal loan money, perhaps of as much as $15 million, might be available for construction of a new Allen County Hospital. Grant money of up to $200,000 also might be a part of the mix, he said.
Heath said Kansas was allocated about $20 million annually for community project loans and in many years the money went wanting.
A USDA community development loan today would carry an interest rate of 4 1/8 percent, which would be locked in for the duration of at least 30 years and maybe 40.
But, before any loan processing could be done, USDA would have to have specific information about a proposed project and it would have to be community-based, meaning management under auspices of Allen County commissioners.
As is, Allen County owns the hospital building and some of the equipment within. Hospital Corporation of America operates the hospital and owns the business part of it, as well as some equipment. In its for-profit model, HCA reaps profits and absorbs losses.
If USDA were to be involved, the hospital’s management model would have to be not-for-profit.
