Community nears deal to finance new hospital
Community Hospital is close to securing the financing it needs to build a new facility on the north side of the city, hospital officials confirmed Monday.
Details of the deal will not be released until it is inked, said Karen Martsolf, Community Hospital communications director.
“We are in final negotiations with a financing company to finance the new hospital,” Martsolf said. “That’s all the details that we have at this time. Once it’s finalized, then we will be releasing more information.”
Hospital construction is key to final development of the Canyon View Medical Plaza campus, 2373 G Road.
Community Hospital has been seeking ways to finance construction of the 136,000-square-foot building since it failed to sell more than $45 million in bonds to institutional investors in November.
The original plan was for the new hospital to be paid entirely with proceeds from the bond sale.
Investors, however, declined to buy the bonds without a coupon rate of at least 8.5 percent, a return Community concluded would be too costly to pay, hospital officials said at the time.
“The financing cost came in above projections at 8.5 percent and that’s what halted the process,” Martsolf said. “We didn’t feel it was a good fit.”
Community owns the 40-acre parcel where the medical complex is to be built.
The new hospital will have 44 beds, same as the current facility, but instead of mostly semi-private rooms as is the case now, all of the beds at the new facility will be in private rooms, according to the hospital.
Chris Thomas, chief executive officer of Community Hospital, said previously that construction of the hospital will take 15 months to complete. Under the original plan, the new hospital was expected to open in May.
Cost of the new building is not certain, but Community is “shooting for $45 million,” Thomas said in September.