Hospital purchases medical building for $750KPublished 6:27pm Friday, June 21, 2013
The Memorial Hospital Authority voted at its Tuesday, June 18, board meeting to approve the recommendation of the Buildings and Grounds Committee and purchase the medical building of Dr. Dean Burke and Dr. Don Robinson for $750,000. The purchase is funded by a bank participation loan amortized over a 20-year period, at 3.25 percent interest for the first three years. First Port City Bank is the lead bank.
The price includes all furnishings except for personal office and effects, and the transaction is expected to close on June 27.
The building, located at 1501 Miluli Ave., houses the practice of obstetrics/gynecology. In addition to Drs. Burke and Robinson, Dr. Jason Moye and Claire Wright, PA-C, also have offices there. All medical providers and staff are now considered employed by Memorial Hospital, as of April 1.
CEO Billy Walker said it is part of the hospital’s plan to acquire property surrounding the hospital campus.
The financial report for the month of May reflects a net income of $132,179, and a year-to-date income of $234,502. Gross patient revenue for the month was $8,468,546, $425,183 better than in April, but expenses for the month were also higher at $3,745,964, compared to April’s $3,625,784.
Currently the hospital has a total of about 504 full-time-employees — about 33 more than this time last year. Finance Committee chair and Authority treasurer, Glennie Bench, indicated this was a reflection of the new employees hired to staff the new medical offices.
One capital equipment expenditure was approved — the leasing of 65 Baxter Sigma Spectrum pumps and associated components used to deliver the patient fluids/medication through plastic tubing inserted into the patient’s vein. The existing pumps were deemed obsolete by the manufacturer in December 2010, and are no longer supported due to the obsolescence of the appropriate components. The total five-year lease cost is $1,614,003.55.
The Authority also approved purchase of a three-year subscription for an operational benchmarking system that will serve as a tool for comparing Memorial Hospital staffing and operations with hospitals of similar sizes, in order to help Memorial run more effectively and efficiently. The first year cost is $20,000, year two, $21,000 and year three, $22,050.
Walker also announced that the offices of Memorial Pediatrics in the Wheat Avenue Medical Building are being expanded to accommodate two new pediatricians, who will be joining the practice in July and September. The office hours will also be extended.
Following a brief closed executive meeting session, the Authority returned to open meeting, voting to approve the minutes of the executive committee minutes, the medical staff credentials for the month and the purchase of real estate.