Hope City Board Holds Special Called Meeting
The Hope City Board convened a special called meeting Tuesday (11-12). After the prayer and pledge the hospital was discussed and City Manager J.R. Wilson said it was maybe the most important thing the Board would tackle. He talked about the risks being taken and recognized significant players. Wilson also talked about how things had changed. The city had been willing to pay $1 million for the building but through the efforts of others didn’t have to. The community has a local company they know and trust.
The amount of money Pafford has put in was listed. This included $575, 000 for assets, $1.5 million for payroll, and $500,000 for lawyers. All of this is without revenue coming in. Revenue will take 8 months or so. All are optimistic that this can work. Pafford is agreeing to lease for 5 years and pay $200,000 annually in repair costs in addition to all the operating costs and taxes. The lease cost for them will be $1 per year. After $200,000 is spent help can be petitioned from the city and the county to share additional costs. The city has agreed to look for state and federal funds to help them. If the hospital becomes profitable, the lease can be extended another 3 years.
The Board was asked to enter into a stabilization arrangement along with the County and SARMC. The city will pay the $1 million dollars based on the current resolution. This will start with an immediate disbursement of $400,000 with $100,000 paid each month until the $1 million is reached.
During the recent city board tour of facilities, the roof of the hospital was discussed. It would cost $3.2 million to do replace the roof. State help will be sought. The roof will not be replaced before state funds are received. Vice-Mayor Kiffanea Talley expressed concern about the limit of $200,000 and all the money the city might have to spend on the hospital when the city needs to focus on sewage, sanitation, policing and other everyday costs. It was made clear the roof isn’t in dire need and will continue to be patched until state funds are received. City Attorney Randy Wright expressed his opinion the agreement the board was a good agreement. Dr. Linda Clark asked how Pafford felt about the building and operating the hospital. A Pafford representative said they were ready and have hired a management team. They are aware they “don’t know everything” and view that knowledge as a plus. A curveball was thrown at Pafford as they were supposed to have a 60-day transition period and instead the bankruptcy judge simply handed them the keys and told them to take over. The only way to approach the state is to have a signed agreement. If they are not able to successfully run the hospital they will give a notice of 60 days. They will make their best effort to keep the hospital open and find someone else to run it.
The building is grandfathered into being a hospital. If it ever closes it can never be reopened without a complete rebuild.
Mayor Don Still said there is risk to both sides. Hope doesn’t want to lose the hospital. If the hospital were to go it would be hard to get one back.
Randy Wright said with all the painful negotiations this is the best possible outcome.
City Director Mark Ross talked about the importance of the media in educating the public. If the hospital closed it would be the first nail in the coffin for the community as manufacturing would have to pull out.
The agreement on the hospital was read by Randy Wight and approved by the Board.
Quorum Court is scheduled to meet Wednesday night (11-13) for the same purpose.
It was noted the state has already given funding to other small hospitals throughout the state.
Prior to adjournment, Hope native Mike Huckabee’s appointment as ambassador to Israel by President-Elect Trump was mentioned.
