“Born and bred” Iolan Craig Abbott told Allen County Hospital trustees he is concerned the county will not be able to afford a new hospital.
Abbott, a former Iola commissioner and owner of Sonic Drive-Ins, said he is aware of several rural hospitals in financial straits.
Abbott asked if trustees have a “special something,” that ensures ACH will operate at a profit.
Harry Lee, trustee chairman, said two feasibility studies and financial forecasts reached the same conclusion: A new hospital will earn enough to pay its debts — and more.
“We feel pretty confident, or as confident as we can in this fluid environment” the hospital’s finances will be sound, said Lee.
The hospital’s current income, to which the board is privy, also makes trustees confident of its ability to carry into the future.
Because the hospital is designated critical access, it qualifies for “considerable reimbursements” for its Medicare patients, said Jay Kretzmeier, hospital trustee. About 60 percent of hospital patients are on Medicare, Kretzmeier said. “That adds to our comfort level.”
Lee said in his mind the future success of the hospital depends on two things: The quality of the hospital’s staff and getting the support from the people in its trade area to use the hospital.
Abbott said the success of his business depended on the same criteria.
IN OTHER NEWS, trustees approved payment of $66,370.77 for architectural fees to Health Facilities Group. HFG has been paid $927,000 so far out of a budgeted $1.18 million for its services.
Easements through the Bob Macha and Fountain Villa properties still have not been resolved, said Alan Weber, legal adviser to trustees.
Trustees agreed to meet the request from the city to have its construction company, Murray Construction, install the sewer line from Miller Road to the new hospital. After installation, the city will assume maintenance of the line.
MARK YOUR calendars. May 7 at 5:30 p.m. will be groundbreaking ceremonies for the new hospital. Dignitaries, including Gov. Sam Brownback and U.S. Sen. Jerry Moran, will be invited to the event.
