Hospital clears hurdle to new construction
New facility could open summer 2011
With a financing commitment in hand, Hillsboro Community Hospital could begin construction on a new hospital as early as April, CEO Michael Ryan said.
Ryan recently learned from HCM/CAH Consolidated, Inc. President and CEO Larry Arthur that Bank of Hays committed to the project. HCM/CAH owns the hospital and nine others.
The financing commitment is contingent on the company receiving a loan guarantee from USDA, Ryan said. He expects applying for the guarantee to go smoothly.
USDA takes 60 to 90 days to approve applications, Arthur said. He expects a late spring groundbreaking.
The planned hospital will have 15 beds and cost an estimated $10 million.
Finding a finance commitment was difficult because of the economy in general and the banking crisis specifically. Commercial real estate loans were “poison” in bankers’ eyes, Ryan said.
Construction is estimated to take 11 or 12 months, he said. If everything goes according to plan, a new hospital could open in summer 2011.
“This bodes well for Hillsboro and Marion County,” Ryan said.
Last modified Feb. 4, 2010