Success Stories |
Atoka Memorial Hospital
Atoka Memorial Hospital, Atoka, Oklahoma
We were retained by Atoka Memorial Hospital in November 2005 to assist them with securing financing for a replacement hospital. They had previously had a facility assessment completed by an architectural firm, which study indicated it would be cost prohibitive to renovate the existing structure. In addition, the existing facility did not have sufficient land to properly expand at their current location.
After an exhaustive site selection process, in which at least 8 sites were seriously considered, the board and the county commissioners selected a 20 acre site adjacent to a major highway.
Financing for this project was going to be difficult since the hospital had a history of losses from operations, had only 2 active admitting physicians for a primary service area of 14,000 (the most underserved county in Oklahoma), had not accumulated cash reserves, and had several non hospital services.
We assisted the board in improving their financial performance by discontinuing those non hospital services, improving their FTE’s per occupied bed, develop an active physician recruiting program, and begin to accumulate cash.
Although many potential lenders declined to participate in this project, we were able to secure a commitment from USDA for a $6.750 million direct loan, which was the first Oklahoma USDA direct loan to a critical access hospital, at a fixed rate of 4.25%, and a $10,000,000 parity revenue bond to be issued by a regional investment bank. These funds would then be utilized to construct a new 44,000 square foot, 25 bed critical access hospital.
The bonds were issued in September 2007, construction was started in late 2007 and it is expected the new hospital will open by December 2008.
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