It's a credit to our community, the (hospital) board and all invested in this project that we were able to do this with the government at a time when you can't get financing anywhere
Brentwood, Tenn. (PRWEB) January 9, 2009
QHR hospital client, The Memorial Hospital in Craig, Colorado, closed on a financing package worth $40.3 million on December 17. The package from the U.S. Department of Housing and Urban Development will go toward the construction of a new, 80,000-square-foot hospital facility, boasting 25 in-patient rooms, an expanded surgical and diagnostic suite, and centrally located pharmacy and laboratory services, among other features.
"It's a credit to our community, the (hospital) board and all invested in this project that we were able to do this with the government at a time when you can't get financing anywhere," said The Memorial Hospital's CEO George Rohrich.
"The expertise available to TMH through our affiliation with QHR was invaluable in developing a cost-based reimbursement model that demonstrated the viability of our replacement hospital project," he added.
According to QHR Regional Vice President Kurt Loveless, QHR and TMH launched their efforts to secure HUD support several years ago. The team began with a long-term financial plan/feasibility study, which provided specific operational and financial targets that had to be met for the hospital to obtain the guarantee.
"The feasibility studies had to be adjusted many times over the course of two or three years - updated and reworked until the hospital was clearly in the financial position to even think about the project," Loveless said. "Next, American Health Facilities Development, a wholly owned subsidiary of QHR, was brought on board. With this move, we were able to fine tune the pricing models and feasibility studies, and begin our strategic planning efforts with the hospital's leadership team."
According to Loveless, one of the team's strategic initiatives was to secure additional tax money. This was accomplished through a community campaign spearheaded by Rohrich.
"TMH's CEO led a great campaign to gain community support for the construction project, and the tax initiative passed," he said. "Meanwhile, QHR consultants were continuing to provide market data updates and strategic guidance to the hospital. InnoVative Capital, a company with which QHR has a long-standing relationship, also played a critical financial advisory role in helping the hospital find its best financing source and obtain the package.
"It's been a long process, but a fruitful one - one that will benefit the citizens of Craig for many years to come," Loveless added.
As for the hospital, work is progressing and TMH anticipates opening the new facility in December 2009.
QHR (Quorum Health Resources) has provided consulting, management and education resources to hospitals and health systems for three decades. QHR is the market leader in hospital management, with more than 150 current multi-year clients across the U.S. As a consulting resource, QHR is among the 15 largest healthcare management consulting firms in the U.S., and the QHR Learning Institute trains over 8,000 healthcare professionals each year. For more information, go to http://www.qhr.com.