By Shannon McFarlin WENK/WTPR News Director
Paris, Tenn.—At a joint meeting of the Henry County Medical Center Board of Trustees and the Henry County Commission Tuesday night, hospital administrators displayed a positive outlook for the facility, but one that is still challenging and in need of continual maintenance to carry on in its positive direction.
HCMC is seeking permission from the county commission to borrow $9.2 M from the Tennessee Municipal Bond Fund that will be used for capital expenses.
None of the money being borrowed or used to pay off the loan will come from the county. But because the county oversees the hospital, the county commission must approve any borrowing.
Making presentations to the commission were Hospital CEO Tom Gee (who is retiring shortly), Incoming CEO Lisa Casteel and CFO Dale Guffey.
Gee noted that Henry County Medical Center is one of the few viable medical facilities in west Tennessee. Of the 20 hospitals that were operating in west Tennessee three years ago, a quarter are closing, he said.
In most recent figures, he noted HCMC showed a profit of $1,814,563, compared to the bottom line for other nearby hospitals. Camden General showed a profit of $1.2 M, while Volunteer Regional in Martin showed only a profit of $716,808. Compare that with Baptist in Huntingdon which lost $2.2 M and McKenzie Regional, which lost $4.4 M.
Gee said Huntingdon Baptist and McKenzie Regional are “running in the red ink and in danger of closing”. Tennessee itself is losing hospitals at a rate second only to Texas, he said.
Surviving hospitals, such as HCMC, are becoming more regional in nature, he said, noting that HCMC patient volumes continue to be positive, with an average 619 patients a day.
The importance that HCMC holds in the community cannot be stressed enough, he said, noting that HCMC employs 878 people. “Our hospital is very important to the community and it continues to grow…The revenue produced by the hospital is more than that of several local industries.”
The hospital’s core business does well, although its peripheral businesses, such as Home Health, the EMS, individual clinics and the nursing home have been showing losses and challenges.
County Mayor Brent Greer said he was comfortable with the hospital’s proposal and especially that its administrators shared the proposal with the county so early. “To allow our hospital to remain competitive and positive”, he said, it needs to maintain its capital projects.
HCMC, Greer said, “is so important to this community. It’s the lifeblood of the community. Outside of farming, the medical center is probably the No. 1 economic driver of this community.”
Capital needs, Casteel said, include big ticket items such as ambulances, chillers, equipment and instruments, as well as computers and other technology items.
The hospital is seeking a fixed rate loan of 2.5 percent with a reset period of five years.
A resolution will be presented to the county commission at its Monday meeting. The need for borrowing has already been discussed at hospital board meetings and at the county commission meetings.
Photo: Hospital CEO Tom Gee presents information to County Mayor Brent Greer, commissioners and hospital board members. (McFarlin photo).
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