PCH Gets Maximum Guaranteed Price on New Facility
</element><element id="paragraph-1" type="body"><![CDATA[Glenn Myers and Scott Bullock from the construction management firm/general contractor Robins Morton gave a guaranteed maximum price of $28,850,245 for the new hospital.
Bids came in approximately $5 million under estimate. The savings is expected to result in lower financing and other fees associated with the project.
The original cost estimate on the project was approximately $40 million. That figure has dropped to $35 million and could drop as much as another $1million.
"We anticipated a better price than projected," Hospital Administrator Tom Hudgins said. "The savings exceeded expectations."
The sub-contractors have guaranteed their bid prices for 60 days.
The hospital board approved the lowest qualified bidders in an eight to one vote. Leonard Heisner was the sole dissenting vote.
Several board members verified that the hospital is under no financial obligation unless HUD approves the project.
HUD will visit Pinckneyville Community Hospital (PCH) July 21 and 22 to meet with board members, hospital employees and those involved in the construction project (architects, financial advisers, contractors).
"They are very specific about whom they want to talk to and when," Hudgins said. He reminded the board that they are expected to meet with HUD representatives from 3:20 to 4:20 p.m. on July 21 in the Family Medical Center conference room.
The board unanimously approved a pre-commitment resolution that will be given to HUD during the visit. The resolution asks for permission to begin site and utility work prior to the final paperwork being completed, if HUD grants final approval on the project.
Again, if the project is not approved, the hospital is under no obligation.
As part of the HUD mortgage guarantee program, PCH is expected to contribute 10 percent of the construction costs. The hospital has funds set aside for facility and equipment purchases in a funded depreciation account. Those funds must be used before any of the borrowed funds can be applied to the project.
PCH purchased the land on which the new hospital will be built and is paying the architect fees out-of-pocket. Both of those expenses count towards the hospital's required 10 percent contribution.
Hudgins said he anticipates final approval from the Illinois Department of Public Health on the building plans before the end of July, as well. IDPH has already signed off on the site plans.
Illinois' requirements for hospital construction are more stringent than the federal rules.
In other business,the board:
discussed the need to react more quickly to staffing issues during slow times. The financial information for May 2010 showed an operating loss of $106,336 and a net loss of $72,015. Hudgins said there was a significant drop in inpatient utilization and small decreases in outpatient and Family Medical Center utilization.
reviewed the 2009 payable 2010 tax computation report. The tax corporate and special corporate portions of the tax levy are the same as in previous years a total of $197,500 The bond and interest portion increased by $27,472 from $57,041 to $84,513. The principal payments for the Family Medical Center, which was built in 1995, begin this year. The bond will be re-paid in 2015. The tax levy amounts to less than one percent of the gross revenue for the hospital and just over one percent of the net revenue.
approved the purchase of four pieces of equipment- $77550 for a new immunoassay analyzer, $63,500 for a coag analyzer, $15,712 for physician dictation equipment and $16,954 for a CT software upgrade. All of the purchases will be moved to the new facility.