Rock Bordelon, CEO of Allegiance Health, which leases management of Eureka Springs Hospital, met with the Eureka Springs Hospital commission to start discussion about remodeling ESH. He said Allegiance had envisioned a new facility, but it became impractical in part because of regulatory changes, so he had come realize the only feasible way to get a new facility would be to upgrade at the same location.
“I don’t own it,” he told commissioners, but said he was there to work with commission and the city to create a new patient care area. His plan at this point would be to rearrange services out of the older part of the hospital, tear it down and build a new facility on the same footprint, or expand if space allows.
Bordelon said Allegiance would look at a long-term lease once the commission gets the loan for remodeling. He said his company is familiar with procuring these types of loans, and he would help facilitate the process. Cost of the project would be determined by plans developed by architects, but he estimated the project might cost $6-8 million.
Chair Michael Merry asked, “Is this a figure Allegiance would help with?”
Bordelon answered that Allegiance would amend the lease to do what it takes for the commission to obtain the loan.
Merry noted ESH is being run well, and, past differences side, he wanted to move forward. He commented, “My attitude is based on performance, and it has been exemplary.”
Bordelon stated improvements would bring only slightly more revenue to Allegiance, contrary to statements in a recent article in a local paper.
Commissioner MJ Sell told Bordelon if he was anticipating a local tax to pay for the improvements, the idea was “dead in the water.” Bordelon said that was not his plan. He said a reasonable increase in the lease payment could help cover the loan payments. He said the city, as owner, would negotiate the loan. “We would walk you through it,” he said. Merry asked if Allegiance would extend the lease through the period of the loan, and Bordelon said he would.
Commissioner John House asked Bordelon how the improvements would benefit Allegiance. Bordelon answered that technically it would not benefit Allegiance much. Nevertheless, he expected ESH would attract more patients and Allegiance would continue to get Medicare reimbursements.
Bordelon added the rebuilt facility might help recruit new doctors. He speculated a cardiac specialist, for example, might provide services periodically just as other services such as an MRI have been added recently.
He estimated the process from onset to completion might take two years, beginning with commissioners engaging architects to determine scope of the project. This preliminary phase might cost as much $30,000 of the commission’s funds, and there would be no guarantee of a loan.
“Now you’ve scared me,” commissioner Barbara Dicks stated.
Sell said she had invited architects Laura and Charley Morrison to the meeting because they know the facility well and had worked on hospital projects. Charley said they have useful information already, which would expedite the preliminary phase, and they’re familiar with limitations of the site.
Laura commented in their previous studies of the sites, they had found “more cons than pros of moving to another site.” She noted the historical aspect of the site will present a huge obstacle, but her team would guide the commission through the process. Charley insisted they could work with the site to maximize its potential, even putting the helicopter pad on the roof of the emergency room if necessary.
Bordelon said his purpose at this meeting was to introduce the plan so the commission could begin discussing it. He would also speak to city council about the idea. The timetable for beginning the project would be up to commissioners.
Merry told him they would meet again April 17 for further discussion, and contended the commission probably should have considered this idea earlier.