Public Hearing on Urban Renewal for MHP

Jay Christensen of Mahaska Health Partnership shows the Public drawings of the proposed expansion to their facility.

Mahaska County Supervisors had recessed their normal meeting to hold a special public hearing on the urban renewal being proposed to help clear the way for Mahaska Health Partnership to issue G.O. bonds.

Jay Christensen spoke for about 30 minutes covering all the points as to why it is necessary for the hospital to stay competitive in today’s mobile society.

Christensen spoke of the current facility that was built in 1965 being not sufficient for today’s needs in health care. How a hospital is run to maintain the health of those around is different than it was 45 years ago, and even what we expect when admitted to the hospital is different. Today’s patients are usually far more ill and need more rest than those of years past that might have been admitted, and enjoyed a more social interaction afforded with semi-private rooms.

He also pointed out insufficient staffing with MD’s at the hospital. Currently they are 3 doctors short of being fully staffed, and with several doctors looking at retirement in the near future, attracting new doctors to the area to help continue quality care for the residents of Mahaska County.

Market share has shown that Surgery and Obstetrics have either been declining or had no growth over the past 3 years. Without growth and building newer facilities the hospital will not be able to grow, and serve the community to help draw other employers to the area to help spur even more future growth for the community.

Another reason to expand is that surgical techniques and equipment have evolved over the life of the building. The newer equipment, techniques and technology offer future growth and attraction to new staff as well.

Christensen in his presentation explained why the hospital and it’s board have decided to go forward with expansion. He stated changes in health care laws, patient expectations, limited growth opportunities, competition, the historic low interest rates right now and the ability to recruit new physicians.

Christensen did admit that communication might not have been what it could have with the public and the Supervisors because they were in line for USDA grants for the expansion. When the federal government switched priorities, all but 1 of the Iowa hospitals funding was dropped at the end of September.

Lindsey Thomas, Mahaska County Assessor asks MHP's Jay Christensen a question during Monday evening public hearing.

Lindsey Thomas, Mahaska County Assessor, asked Christensen what the back-up plan is if the payment plan were to fail. Christensen stated that there would be agreements in place to help protect the County if performance ratio’s are not meet. A consultant would then be hired to make recommendations on how to help the hospital meet their obligations.

Thomas then stated that there is certainly a concern that property taxes would need to be raised if the hospital could not meet it’s obligations, and the possibility of  citizens being very upset over the increase in taxes if the hospital were to fail on it obligations.

Christensen stated that they believe that with the action plans they have, and the financial feasibility study that it won’t be an issue. He stated though that you can never say the economy won’t ever go south, but he believes that the plan is solid.

Several residents then spoke of their support of the hospital board and their decision to go forward with their planning. They agreed that the hospital will be a great asset to the community in order to help recruit more business, physician’s, and being a boon to economic development of the area. Resident pointed towards previous projects where the City and County worked together for the benefit of the community.

Mahaska County residents listen at the urban renewal public meeting on Monday December 6, 2010

Supervisor Rouw stated that he had heard both sides of the arguments and believed that many County residents were not yet fully aware of what is going on with the project. Later on in the discussions Greg Gordy agreed by stating that earlier press coverage never stated that it would be of importance to the tax payer because, at the time of publication, the USDA was involved.

Gordy then stated he has heard a lot of comments as well. He maintains that a vote by the residents on the issue is the best for the residents of Mahaska County if they are the one’s that could possibly be stuck holding the bill. He stated that residents could still get signatures and demand a vote even if the Supervisors agreed to go ahead with the urban renewal.

Gordy spoke of how the vote had been possible, but the hospital did not pursue that at the time because they were under the impression that they were in line for USDA funding. He questions the ability of the hospital to repay because of the spread of the interest rates, and that those looking at buying bonds are concerned about the future of hospitals being able to repay their debt.

The vote on urban renewal was then set by Supervisor Rouw for the next Supervisors meeting in 2 weeks.