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CAH expects state to approve plan
By Jim Rawlins

Things should continue on schedule for Carlinville Area Hospital’s plan to build a new $27 million replacement facility.

The Illinois Health Facilities Planning board was set to consider CAH’s request for a state “certificate of need” Tuesday. But a report by the agency has raised some questions over the finances needed.

In the report, the agency questioned construction and contingency
costs of $12,615,189, around $339.79 per square foot. According to the report, the state standard was $296 per square foot, or a cost of $10,989,296.

The report also had some questions about the number of beds and cash-on-hand. In the report, it lists the state standard as 90 days or more for cash- on-hand. CAH has historically had between 30-37 days of cash-on-hand over the past three years. The hospital did project that, by 2012, there would be 66 days of cash-on-hand.

There were also some concerns the hospital would not have enough patients for the number of beds.

But the hospital’s CEO Ken Reid has indicated the hospital will be able to make all its payments. He expected the planning board to approve the project, so CAH can go ahead working on the new hospital.

Donors have pledged about $8 million of the $27 million cost. Fund-raising is expected to raise another $3 million, with the rest of the cost to be borrowed.

The planning board is not required to follow the recommendations of the State Agency Report. They may either disagree or disregard the staff’s findings and issue a certificate of need.

Work on the new hospital is expected to be completed by March 1, 2011. The 25-bed facility, which is listed as a 54,549-square-feet critical access hospital, will be located on 24 acres north of Carlinville, about 1.7 miles from the current hospital.

According to the report, the transition from the old hospital to the new facility will occur simultaneously, with the discontinuation of the old facility causing no interruption in operations.

Application for the state certificate was completed March 28, with the review of the hospital’s request running
through July 24.

Source: Macoupin County Enquirer, August. 15, 2008