Wednesday, December 16, 2015

Details of New Hospital Construction/Costs/Timeline Provided to Medical Foundation Board

The Winston County Medical Foundation met on Tuesday and received  updates and a full briefing on the details of design, construction, cost and financing of the new Winston Medical Center. Chairman of the Board Will Hill gave the members and guests an overview of the events of the past 18 months and the basic steps taken to date.

Roger Pryor of the firm, Pryor and Morrow presented design information for the new medical campus along with sketches, layouts and artist's renderings. The project is to include:
  • a 61750 sqft medical center
  • a 16262 sqft medical clinic 
  • a 9330 sqft administration building
  • 3 community designed nursing home facilities of 17214 sqft each (72 total rooms)
  • a refurbished existing nursing home converted to 46 private rooms
  • walking track
  • small lake area on campus
Justin McDonald with Yates Construction who will oversee the project indicated that the project was in effect already underway as site preparation and continued removal of the existing facility is in progress. McDonald stated that barring weather issues, the pads for construction of the medical center, clinic, admin building and nursing homes should be ready by the end of January 2016. The project was bid in several packages and bids were awarded to a number of contractors - all Mississippi based. These include:

Tanner Construction and Birdsong Construction  - Site Prep
Century Construction - General Trades
McLain Plumbing and South Central Heating - Plumbing and HVAC
Dynamic Fire Protection - Fire Suppression
Moses Electric - Electrical

The project is expected to be completed by the end of March 2017 at a cost of $46,234,243.

As always, how to pay for such an undertaking was the major topic.
CEO Paul Black provided detailed information on current funds available and their sources as well as projected revenues to provide the cash flow to retire any remaining debt.

After repairing the existing nursing home to make it usable again after the storm and paying off existing debt service, roughly $17,500,000 remains available for construction from insurance proceeds. Anticipated proceeds from FEMA are $8,145,892. Proceeds from New Market Tax Credits is expected at $10,490,000 and loans for up to $11,166,278 have been approved with Renasant and BanCorp South Financial Institutions. All sources yield up to $47, 211,128 available for construction and completion.

The above figures do not include funds to furnish and equip the facility but insurance proceeds have been specifically earmarked for that purpose and are not part of the figures presented above.

Black then presented information on projected cash flows that
included base profits from WMC's clinic locations, nursing home projections and in patient revenue. If projections are reasonably correct, funds to pay debt service on the loan should exceed payments by roughly $100,000. 

The loan required to complete the project is based upon a 25 year term at 2.75% interest and requiring an approximate $664,000 yearly payment.

Black also took the opportunity to inform the Board on the continued search for additional physicians and noted that Dr. Adam Byrd would be joining the staff in July of 2016. He also noted that WMC was working with the University of Mississippi Medical Center to attempt to expand telemedicine services and other specialty services with UMMC.

Drawings and plans of the medical complex are complete but have not been distributed at this point. Once available, WinstonWeb will provide more detailed information and drawings.

Board Chair Hill stated that efforts were continuing to find other sources of revenue (possibly grants) that can be applied to construction costs and that the project will be monitored to find methods to reduce costs as well. wwm