HCCH Presents Formal Presentation Of New Hospital Plans

Harrison County Community Hospital representatives gave the formal presentation of the plans for the construction and timeline for a new hospital facility to the public at a meeting held Thursday at the South Harrison High School’s commons area.

After a welcome from hospital board president Glen Dale Cox, Harrison County Community Hospital CEO Tina Gillespie provided the reasoning for the decision the pursue the new facility option and the site selection. She stated that two concepts were initially considered by the board regarding the long term viability of the hospital. A feasibility study was also conducted in the process. The board considered 3 properties. In the end, the site along 39th Street allowed the hospital to meet regulations, their budget, and allow for potential expansion. The new facility will include private rooms, increased inpatient and outpatient space, an indoor MRI room, more space for the kitchen and dining areas, and more parking. The hospital will include 83,000 square feet.

The cost for the hospital is estimated at $62 million dollars. $41 million will be for building site and construction costs. $8 million is estimated for furniture. Architecture, financing, and a contingency allowance account for the rest of the total figure. The hospital will attempt obtain a $49 million dollar direct loan over 35 years through the USDA Rural Development Program and $12 million dollars from the sale of revenue bonds for the bulk of the financing. The hospital’s equity commitment is $600,000.

CEO Gillespie also stated that a feasibility study was conducted regarding the hospital’s ability to pay off the debt. 75 percent of the payback will come from Medicare and Medicaid reimbursement because of the hospital’s status as a Critical Access Hospital. The new operations and new services that come with the new hospital are also being counted one to aid in paying the debt down.

The hospital receives 2.3 percent of their revenue from taxes that come their hospital district structure. That amounts to $640,000. That money will continue to be used for capital improvement equipment purchases.

If the loan is approved, construction would be started in the spring. The hospital would be opened in 2025.

CEO Gillespie says the current hospital facility would not be left to deteriorate. She did state that a complimentary health service, not affiliated with HCCH, might be an option at the site. If the current hospital facility cannot be used suitably, the facility would be removed.