Texas County Memorial Hospital board members adopted a resolution from the U.S. Department of Agriculture at its monthly meeting that will allow the hospital to seek approval to fund a proposed 52,000 square foot hospital expansion project.
Wes Murray, chief executive officer at the hospital, described the resolution as one of many “housekeeping items” required to pursue a USDA loan for the shovel ready building project.
Special USDA loan funds are available as part of the government’s federal stimulus package. The monies would provide TCMH with a 40-year loan with a fixed, simple interest rate of 4.37 percent. Only interest would be paid by the hospital during the construction process, and there is no penalty for pre-payment of the loan balance.
The resolution recognizes that TCMH complies with several requirements of the federal government such as being an equal opportunity employer, a drug-free workplace, a fair wage employer and constructing new projects without lead-based paint.
The hospital is also completing an examined financial forecast and has obtained a letter from a local lender stating that the USDA loan terms cannot be matched, additional requirements for the USDA loan.
“If we are going to apply for this loan, there are rules we must abide by,” Murray explained.
TCMH is also holding a public hearing at 6:30 p.m. Monday, at the Texas County Justice Center, as required by the USDA.
Murray presented board members a draft of additional remodeling the hospital plans to pursue should the USDA loan and a decrease in construction costs make additional hospital construction possible.
The original proposed expansion and related remodeling addressed many hospital departments, particularly those with heavy patient use – emergency room, medical surgical floor and radiology. Saving funds would allow the hospital to also address the expansion and remodeling needs of the surgery, obstetrics and intensive care departments at the hospital, too.
“I am still optimistic we can get this project done,” Murray said. “When we look at the long-range needs of this hospital and our community, we need to move forward with our construction plans.”
Murray noted that currently the hospital emergency department needs a new roof with a cost of $175,000.
“We have areas that need major attention,” Murray said, “And as this facility ages, we will continue to have major needs that cost $100,000 here or $100,000 there.”
The planned construction and remodeling will address many current building maintenance needs.
Omanez Fockler, president of the TCMH board of trustees, echoed Murray.
“It’s important that we keep in mind what we are facing in maintenance needs alone as we move forward,” she said.
Continuing to look at the long-range needs of the hospital, the TCMH clinics and the community, Murray has asked Russell Huq, M.D., the family practice physician coming to TCMH in September, to work full-time in the TCMH Family Clinic in Licking.
“Dr. Huq is excited about the opportunity to work in Licking, and we are glad that we will no longer have to patch together clinic providers for our Licking clinic patients,” Murray said. A void was created with the illness of Dr. Eugene Honeywell.
Dr. Michael Moore, Dr. William Wright and Dr. Charlie Rasmussen, all family practice physicians, and Brooke Fair, family nurse practitioner, see patients at the TCMH Medical Complex. Dr. John Paulson, also a family practice physician, will join their clinic in July.
Joleen Senter Durham, director of physician recruiting at TCMH, continues to seek primary care physicians for Houston and for the clinic to be built in Mountain Grove. Durham reported that TCMH was recently able to host an internal medicine physician who is seriously considering employment at TCMH.
“For a small, rural area, we have good quality physicians here right now and coming here in the future,” Murray said. “We have a very good physician plan moving forward.”
TCMH is hopeful that the addition of Huq’s practice will help offset financial negativity experienced in the first half of the year.
Linda Pamperien, chief financial officer, presented the financial report for June showing a negative bottom line of $101,271 and year-to-date red ink of $422,240.
“We are very conservative in everything we do and are watching our expenses every day,” Pamperien explained.
Although the hospital has not implemented a hiring freeze or laid off employees like many healthcare facilities in the region, Murray noted that many employees at the hospital were using their accrued time off to make up for hours that have been cut due to a decreased census at the hospital in 2009.
“Many times it looks like we are standing solo in this negative financial situation,” Murray said, “But all hospitals are experiencing a financial crunch with a decrease in revenues and patient volumes and the need for additional physicians.”
“A lot of organizations are in the same situation,” Mark Hampton, hospital board member, agreed.
Murray explained that the new providers coming to TCMH “are eager to pick up where we are and move forward.”
Pamperien also reported that TCMH has implemented an upfront collection process for hospital outpatient services. Outpatients are pre-certified for procedures before arriving at the hospital, and deductibles and co-payments are being accepted at the time of service or payment arrangements are made in advance.
“We are contacting our patients prior to their service so they will know what’s expected,” Pamperien said.
In about six weeks, the hospital will begin to collect co-payments and deductibles or make payment arrangements at the time of service with TCMH emergency department patients.
In other news, TCMH will purchase the land and hold a groundbreaking for the new TCMH clinic and ambulance base on Thursday, Aug. 13, in Mountain Grove. The groundbreaking will feature U.S. Sen. Christopher “Kit” Bond and U.S. Rep. Jo Ann Emerson. The event is open to the public.
“We are considering the option of beginning the ambulance service in Mountain Grove even before the clinic and base are built,” Murray said.
TMCH has already purchased the ambulance and has personnel hired to service Mountain Grove. Durham is already recruiting for healthcare providers for the TCMH clinic that will be built in Mountain Grove.
Present at the meeting were Murray; Pamperien; Durham; Doretta Todd-Willis, chief nursing officer; Dr. Charles Mueller, chief of staff; Bo Liu, University of Missouri medical student; Ellen Willis, TCMH physical therapist; Laura Jarvis, Missouri State University physical therapy student; and board members Fockler, Hampton and Janet Wiseman.
Board members Mark Forbes and Jane Kirkwood were absent.
The next meeting is noon Tuesday, Aug. 25, in the downstairs meeting room of the hospital.