Electra Memorial Hospital Breaks Ground on Expansion and Renovation Project
January 4, 2012
Electra Hospital District Board of Directors, administration and staff participated in the ground breaking ceremony for the expansion and renovation of Electra Memorial Hospital today.
The $11.4 million construction project is made possible by a loan guarantee from the U.S. Department of Housing and Urban Development (HUD) through the Federal Housing Administration’s (FHA) Section 242 Hospital Mortgage Insurance Program. The project which will consist of three phases is scheduled to be completed in April of 2013. HUD has estimated that the construction itself will support approximately 187 full-time jobs and provide an economic boost of more than $32.8 million to the community. Once completed, HUD estimates that the project will provide an estimated economic benefit to the community of more than $1.6 million annually, based on an economic model used by public and private institutions.
Electra Memorial Hospital, originally opened in 1976, is an acute care facility that includes a 24-hour trauma center, laboratory, radiology, pharmacy, rehabilitation, physical therapy, cardiopulmonary services, and a medical clinic as well as providing ambulance services in the community. As the delivery of healthcare changed over the years, the need for additional space became critical for efficient hospital operations. The FHA-insured mortgage loan will be used to renovate and expand the current facility to double its size and will include a new 19-bed inpatient wing with eight private rooms and will provide additional space designed for patient focused health care services. Also, the mechanical, electrical and plumbing systems of the 35 year old building will be upgraded to meet current codes.
Lancaster Pollard was hired to obtain financing for this project and recommended the District pursue the HUD loan guarantee. Electra Hospital District was invited to submit an application to HUD on January 31, 2011, which was followed by a site visit from HUD’s representatives on July 25th, 2011, to evaluate the feasibility of the project and community support.
The commitment from HUD was received on September 30th, and the loan closed on November 29th. The result was a long-term fixed rate of interest, which Lancaster Pollard estimates will conservatively save $5 million over the life of the loan, compared to the next best and available loan option.
Representatives from the community, the City of Electra, Wichita County, including Judge Woody Gossom and Precinct 4 County Commissioner Bill Presson, Lancaster Pollard, Adams Management, McCarthy Construction, REES Architects, and hospital staff members were all welcomed by Hospital CEO, Jan Reed.
Electra Hospital District Board President, Johnny Miller, gave opening remarks and Board Vice President, Roger Sanford, gave a brief review of the project’s origin, including the laboratory inspection that was the catalyst. Tom DeLizio, M.D., Mayor for the City of Electra, also addressed the crowd, followed by the ground breaking ceremony and closing remarks from Francine Rowe, Board Secretary.