TMH Board hears viability study about possible medical office building


In other action

The Memorial Hospital Board:

• Approved, 7-0, consideration of Emdeon Claims, for billing and payment services, with a one-time setup fee of $12,565 and a monthly service fee of $1,329.95. Emdeon will handle the hospital's revenue cycle management

• Approved, 6-0, an HVAC contract to Shepherd and Sons for purchase and installation for A/C condensers in the MRI building, in the amount of $8,035

Citing the need for extra space, The Memorial Hospital has started looking into the possibility of adding a medical office building at the new hospital campus.

During its meeting Wednesday night, The Memorial Hospital Board heard a feasibility and market study from Greystone Brokerage & Development of Franklin, Tenn.

The purpose of the feasibility study was to recommend the size, scope and cost of a medical office building, TMH Service Excellence Officer Samantha Johnston said.

The building would potentially house specialized physicians, physical therapy and business and administrative offices.

"What Greystone recommended was a 32,000- to 34,000-square-foot building," Johnston said. "That would meet all of our needs."

Johnston said the project would cost an estimated $7 million.

The building would be separate from the new hospital but accessed through a walkway.

Johnston said having the specialized clinics on the new hospital campus would increase efficiency.

"If you go to see the doctor, and they refer you for X-rays, you can walk a short distance to have them performed," she said. "It would be all in one area to maximize convenience."

Funding for any new building could come from three options, Johnston said.

"The first would be to have a third-party developer provide capital and service for the project, with zero financial investment for the hospital," Johnston said. "The third party developers would essentially be leasing the dirt."

The second option would be a joint investment between the hospital and a third party developer. The plan would be essentially the same, Johnston said, but the hospital would invest money in the project.

"And the third option is to have the hospital hire the developers and contractors like the new hospital project," Johnston said.

The TMH board did not make any actions or recommendations with the study but will revisit it, possibly during its next meeting.

"There's been no decision at this point," Johnston said. "Possibly during next month's meeting there might be a discussion to pursue or choose which option as we move forward."

Johnston said the hospital's current revenue would not be able to fund the project, but after the transition from the old building to the new building, it could be a possibility.

"We want to make sure we have a solid cash flow at the new facility before we make any decisions," she said. "We don't want to bite off more than we can chew."

Johnston said building the medical offices was not a question of if, but how.

"There is no doubt that in the future there will be a medical office building," Johnston said.


Cole White 7 years, 11 months ago

Yet another question our press doesn't ask granny!


oldsage 7 years, 11 months ago

There is a forth option. Don't build it because after what the hospital did to Dr. Told, many of us will not only never go to your new hospital, we will never go to the new office building for the same reason. Bet the marketing study did not figure that out. Viva Yampa Valley Mecdical Center!


Cole White 7 years, 11 months ago

So how come they can build a 32,000 square foot medical building for $7 million but the new hospital that is only twice as big costs 42 million? (that is six times as much for a building only twice as big?) Way to ask the tough questions Daily Press!


freeman 7 years, 11 months ago

ask greystone,,maybe he could resolve that for you,,he seems to very worthy of his comments,,also what happened to david moore lets hear it david


Taxpayer 7 years, 10 months ago

The fleecing of Craig America! And how much has the hospital lost since January through April 30th?


Taxpayer 7 years, 10 months ago

Did the hospital board go through a bid process? Or did they just use the dart board method with only one name on it? I hope there are a few board members who are questioning these practices and making sure we have some type of transparency on these decisions. Maybe the next goal should be to remove the mill levy through the vote of the people who are stuck paying for these poor decisions. Highway 1340 is asking the questions that should have been addressed prior to hiring these consultants!


craiggirl 7 years, 10 months ago

Just wondering if ANY of you ever attend the Hospital Board Meetings? It's fine for you all to speculate here on the forum, but that's all it is. Why don't you put some of your energy into actually finding out what is going on.


birdchamp 7 years, 10 months ago


In response to your question "So how come they can build a 32,000 square foot medical building for $7 million but the new hospital that is only twice as big costs 42 million?"

The buildings are not the same types. A hospital has more intricate systems for integration and utilization than a medical office building, which is more or less a shell space.

Additionally, you should differentiate between construction cost and equipment cost. If your house were destroyed and you had to rebuild, you would have construction cost (the cost for an empty home) and you would have furnishing cost (furniture, appliances, etc.).

If one was to utilize the square foot price of a building as the sole basis of construction cost comparison, it would be more feasible to build an empty warehouse or a tent city. Maybe a M.A.S.H. unit?


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