PowerPoint Presentation

Welcome!

Strategic Development and Facility Master Planning

Board Approved in October 2010Hot Springs County Memorial Hospital

October 2010 Board approved use of Davis/Align Partnership to move forward with Master Facility Planning.

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Research the MarketEvaluate Demographic TrendsAssess Hospital PerformanceIdentify OpportunitiesWhat is our context?

Phase 1: Awareness

3What works well and what does not?

Phase 1: Awareness

Site AnalysisDepartmental AssessmentClinical Flow and AdjacenciesCode Compliance

Phase 1: AwarenessWhat do the stakeholders want?Patient PerceptionsUnmet NeedsCommunity Support

Phase 1: AwarenessHow much can we afford?Capital Capacity and ResourcesCurrent and Historic Financial PerformancePlan Within Our MeansRealistically AchievableFinancing Options

Phase 2: Actionable OutcomesWhat would it look like?Explore Multiple Options:RenovationExpansionReplacement

7The DeliverableAssessment of our market and how we are doing in itUnderstanding of our current facility situation, areas of exposure and for improvementAwareness of our communitys unmet needsEvaluation of what we can realistically affordA financially and market appropriate facility response

Current Facility IssuesCurrent building in place since 1959 (Utilized Hill Burton funds) No private showers or bathImaging equipment spread throughout facilitySignificant lack of efficiencyVery inpatientcenteredUpstairs/Downstairs servicesMaintenance tunnel infrastructure Heating and cooling challengesHIPAARecruitment and retention

55,000-60,000 square feet in size. More focus on outpatient servicesTwo operating roomsOne endoscopy roomEmergency room with six treatment spacesAn expanded/consolidated imaging area14 medical/surgical patient rooms

Two obstetrical roomsPharmacyLaboratorySpecialty clinicCardiopulmonary spaceCardiac rehab spaceDietary areaNew FacilityALL ON ONE FLOOR

Identifies what needs to go into the new building, how big each space needs to be in or order to meet current and future health care delivery needs.

11Cost EstimateRemodeling costs were equivalent to roughly 80% of full replacement.

The projected budget for this project as of July 2012 was $27,786,689

This figure does NOT include financing costs or required construction period interest

Assumes 17-month construction duration, and this was presented with an anticipated construction start date of Spring 2013

Financial AffordabilityCounty bonding capacity as of 2013 valuation is $2. 35 million

County bonding with a district would result in bonding capacity of up to $5 million

A 3-mill levy based on 2013 valuation), would generate $684,000

A 1% optional sales tax (based on sales from 2013) will result in gross proceeds of $333,153.76

Financial Affordability

Space for admin, IT, materials mgmt, housekeeping/laundry, physical plant, lobby and reception,14Financial AffordabilityHospital DistrictConsistent funding mechanismProvides improved strategic and long-term planning capabilitiesLarge equipment purchasesBondsCash flowAnticipated decrease in Medicare and Medicaid reimbursementContinued use, and potential increase in charity care and bad debt service

(FY 2013 HSCMH provided more than $1, 423,447 in bad debt and charity care-$513,762 FY14 as of Feb)

15Financial AffordabilitySpreads support across all county taxpayers

Currently 16 hospitals in Wyoming are considered Critical Access Hospitals (CAH) 11 of these hospitals are district-funded facilities, including West Park Hospital, Powell Valley Healthcare, North Big Horn Hospital and South Big Horn Hospital

Improved support from State Land and Investment Board because we are taking steps to tax ourselves

Improved bonding capacity

Provides for ongoing operational needs

No state income tax

16Questions?Additional Information Needs?