DMH CEO Discusses Proposed Status Change & Refinancing Issues Facing HospitalJanuary 31st, 2011 by Joe Burgess
Included in this article are some thoughts and quotes from Drew Memorial Hospital’s CEO Mike Layfield, in regards to their recent board meeting, as well as decisions currently facing the hospital. Also provided are 2 videos, where Layfield spoke at a recent Rotary Club meeting.
Layfield told MonticelloLive.com, “Drew Memorial’s Board held what I would consider as another historic board meeting. The last being when the board approved the $14 million dollar modernization program in a phased in process, that when completed will modernize the entire hospital for decades to come at a total cost of approximately $50 Million.” In response to creation of new jobs and the economic impact of this Phased in approach Layfield responded” as each phase is completed additional jobs will be created and there will be major economic benefit to the economy of Drew County. Approximately 30 new jobs will be created as each phase is completed ; ultimately over 100 jobs will be created . Not only hospital staff jobs, but more doctors will come here opening offices and hiring staff, all health related businesses in Drew county receive a positive impact, in addition to all local business economies. Even our tax base will go up as people move to Drew County purchasing , homes , cars, and other goods from local merchants”
Asked what he thought the overall impact of the health care sector was in Drew County Layfield said” the economic impact of the health care sector upon Drew county is tremendous. On may speculate that, second to UAM’s impact on the economy , as the health care sector goes so goes the economy of our County. The health care sector employs 759 people and has a annual payroll of over $35million. Once the secondary impact is included in the results, the total impact on employment is 998 jobs in Drew County and a payroll of over $43 million.” How many employees are currently employed by Drew Memorial Hospital? “ we currently employee approximately 257 with a payroll of $12,753,000” stated Layfield.
The Drew Memorial Hospital Board continued pursuit of it’s vision of hospital modernization through two initiatives , directed at finding additional funds to construct a proposed surgical center and assure future economic stability of the Hospital.” These efforts continue the boards strategy and commitment to fund the construction modernization program with its own revenues and no new sales tax requests as received by other local area hospitals,” he added.
At the January 26th Board meeting to landmark resolutions were passed. Describing their resolutions, Layfield said, “The two resolutions and proposals will mean millions to the Hospital construction program and future economic stability of the hospital, with no new taxes or personnel change to the medical community, hospital employees while improving health services to Drew County for future generations”
Both resolutions will need to be approved by the Quorum Court . the first resolution for approval was “to request a change in the Hospital status from a Government non-profit Community Hospital to a Private, non-profit Community Hospital for one reason – to gain access to approximately $1 million in additional Medicaid funds available only to Private non- profit Community Hospitals thru a new law enacted 1 ½ years ago . This will be on an annual basis and is not available to government, non-profit community hospitals.
The second resolution proposes to the Quorum Court extension of the current AD Valorem 1.8 millage thru a refinancing and extension . The current millage first started in 1999 has been extended 3 times for hospital construction projects and is set to end in 2017. The extension would end in 2029 and give the hospital an additional $2 million (one time) to use toward the construction program and building of the surgery center. ”
In the past these type resolutions did not have support of the medical staff, board and employees where do they stand this time? “ the pat is the past, at this time the majority of the Hospital’s Medical staff, Board and employees support the resolutions because they benefit everyone especially our patients. Describing the primary benefit to Drew County, Layfield concluded, ” other than the economic benefit to the Hospital, all this is being done with no new taxes and /or request for a sales tax, like other hospitals in the area. The hospital is proud to do the modernization thru is own revenue sources but needs the Quorums courts and the people of Drew counties assistance and vote of confidence with these two initiatives, directed at improving the Health of Drew County’s people for decades to come.”