Administrators and board members of The Memorial Hospital in Craig received one last holiday gift Wednesday when hearing results from a financial analysis.
That analysis revealed that the hospital could reasonably expect to borrow $20 million, money that would be used for the construction of a proposed new facility on 15 acres of land west of Shadow Mountain Village.
"In other words," TMH chief executive officer George Rohrich summarized, "we can do it. ... The finances now say it can be done. Now we'll find out if the banks agree."
The analysis was presented to the board during its monthly meeting.
Kurt Loveless, a regional associate vice president for Quorum Health Services, said net profits in 2005, an estimated surplus in 2006 and minimal debt makes the hospital a good bet to receive loan money.
"It looks like it can go forward ... it looks like it's doable," Loveless said.
The rosy financial situation at TMH was much more bleak in the first few months of the year. But, Loveless said, seven consecutive months of net gains has brightened the financial outlook, thereby bringing the new hospital facility closer to reality.
"The past seven months has been quite a turn around," he said.
Hospital officials said Wednesday that TMH is poised to finish the year with a net gain, giving the hospital two consecutive years with $500,000-plus in profits.
Rohrich said TMH hopes to borrow $20 million for the project and spend an additional $5 million of its own money for the new facility. The final $5 million would come through funds raised for the project and grant money, he said.
Ron Danner, chairman of the TMH building committee, shared Rohrich's enthusiasm regarding the financial analysis and confirmation that the hospital would be able to borrow money to complete the new facility.
"We've got a ways to go," Danner said. He added, "but it does mean we're starting the process and (we) understand what we can afford.
"... These things are all coming together nicely."
On Wednesday, the board also directed Rohrich to begin preparing to send out requests for bids to companies that might be interested in completing infrastructure work at the hospital site.
In other action, the board unanimously:
- Approved medical staff privileges for doctors Michael Braaton, Wayne Miller, Eric White, Brian Petersen, William Jobe, Sarah Beale, Jeffry Weingardt, Francis Crnkovich, Steven Brown, Robert Lile and Mark McGehee.
- Approved provisional staff privileges in accordance with the completed family delineation checklist for doctor Phaedra Fegley.
- Approved provisional staff privileges in accordance with the completed general surgery delineation checklist for doctor Stanley Pense.
- Approved provisional staff privileges in accordance with the completed emergency medicine delineation checklist for doctor Bruce Beckford.
- Approved non-physician healthcare provider staff re-appointment privileges for Ronald Danner, David Dorsey and Mike Lyon. Danner, who's also a board member, abstained from voting.
- Approved associate staff reappointment privileges for doctors Mark Helm, George Pachelo, Allen Belshaw and Barry Smith.
- Approved active staff re-appointment privileges for doctors Larry Kipe, Stacy Childs, James Haden, Andreas Sauerbrey, Gregory Roberts, Robert Collins, Catherine Crowe, Andre Huffmire, Tamara Rice and Pamela Kinder.
- Approved a recommendation to extend the deadline for re-appointment applications until March 1.
- Approved the purchase of a pulmonary function machine for $23,704.
- Approved a transfer of money from the new The Memorial Hospital restricted funds account to the operating cash account to pay for services rendered by Diversified Consulting Solutions for $70,000.
- Approved changing a bid solicitation policy, altering the threshold of services from $1,000 to $5,000.