Allen County commissioners Tuesday hired a financial adviser to help them arrange financing and then drum up voter support for an improved hospital presence in the county.
The commissioners expect a recommendation from their consulting firm, Health Facilities Group of Wichita, later this month on what its representatives think would be the better approach, expansion and remodel of the existing Allen County Hospital or a new hospital altogether. Members of the citizens advisory group, Hospital Facilities Commission, also will weigh in.
The contract commissioners will sign with Charles Wells Jr. of Healthcare Financial Advisors, Inc., Shawnee Mission, will pay his firm $15,000 regardless of the outcome of whatever is undertaken. Success with a bond issue would increase compensation to $125,000.
Wells provides financial advisory services for rural hospitals and has dealt with many in Kansas, including Allen County in spring of 2007 when thought then was being given to remodel or rebuild the hospital.
“We’re buying expertise,” said Alan Weber, county counselor, said of Wells. “He has a history of putting these things together,” Weber said of possible financing through a revenue bond issue and, if necessary, additional taxes.
Part of Wells’ role would be to talk with Hospital Corporation of America (HCA) about finances — that information will remain under wraps for the time being — and negotiate an end to the county’s lease with HCA, if that is the direction commissioners decide.
“He may be able to shake some rocks loose that we can’t,” said Commissioner Rob Francis.
Commissioner Dick Works agreed, allowing “$15,000 will be a bargain,” for movement that commissioners anticipate will occur from Wells’ influence. “We started with a lot of momentum,” which now seems to have stalled some.
“We want to see progress that we haven’t been seeing,” Commissioner Gary McIntosh said.
Earlier in a conference call, Joyce Heismeyer, ACH chief executive officer and an employee of HCA, told commissioners that documents outlining a new management arrangement between Allen County and HCA should be ready for review, perhaps as early as today. Information will be based on a management agreement HCA developed in recent months with Lafayette Regional Medical Center in Lexington, Mo.
Besides a possible management scenario, commissioners also are eager to learn how much HCA has profited the past five years that it has leased the hospital. These numbers have been kept privy from commissioners.
They also want to have conversations about termination of the lease and what it would cost to do so. The lease between Allen County and HCA, with 10 years remaining, may be terminated within six months at initiation of either party.
County adds financial guru
