QHR Helps Hospital Client Secure $40.3 Million in Hud Financing
Package will Help Fund New Hospital Facility for Craig, Colorado’s The Memorial Hospital
Brentwood, Tenn. (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-squarefoot 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 longstanding 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.
