Hospital project picks up momentum

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October 26, 2011 - 12:00 AM

“It’s been whirlwind,” of activity since engineers learned land on North Kentucky Street was approved as the site for a new Allen County Hospital, said Phil Schultze of Murray Construction.
In that two weeks Schultze and his construction management crew have met with all city department heads and “have come to good, predictable conclusions” regarding accessing city utilities to the 30-acre parcel.
“One surprise” was a request by city officials to replace Kentucky Street, Schultze said.
In a later discussion, Alan Weber, counsel for hospital trustees, said if damage occurs to Kentucky Street because of increased traffic then both the city and county have agreed to make needed repairs.
Schultze said he planned on conferring with utility department heads “every few days,” at the outset of planning for the hospital.
So far, the county has spent almost $625,000 toward the new hospital. About $100,000 of that went for “due diligence,” for consideration of land on East Street and at the intersection of U.S. 169 and Oregon Road as prospective sites for the hospital. Included in that cost was soil testing, architectural and engineering drawings, land options and condemnation proceedings.
The bulk of the money, about $461,000, has gone to Health Facilities Group, the architectural firm designing the hospital.
Construction of the hospital is scheduled to begin in April and last 17 months.
Chuck Wells, financial adviser to the trustees, said things are on schedule for the sale of the $25 million general obligation bonds.
Wells said he is hoping to get a better rate than the expected 4.3 percent interest due on the bonds, though admitted it is a good rate. In April, comparable fixed interest rates were 4.85 percent; a year ago rates were 4.75 percent.
In a call to Centers for Medicaid and Medicare Services, Cris Rivera, ACH chief executive officer, said “everything looked good,” for approval of the hospital retaining its critical access designation. Reapplication is necessary when moving from one site to another. Rivera said one question remained about the number of hours worked by contract labor at the hospital, referring to temporary help working at the hospital pharmacy, which is run by Hospital Pharmacy Management, a division of Iola Pharmacy.
Otherwise, no issues were reported, Rivera said.
“It should be very positive for us.”

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