A new agreement, which is yet to be finished, will help the hospital district with funds and costs to improve and replace equipment and resources. | Pixabay
A new agreement, which is yet to be finished, will help the hospital district with funds and costs to improve and replace equipment and resources. | Pixabay
A new deal could help Swift County-Benson Health Service by saving the health services $300,000 a year in interest.
The agreement with the City of Benson and Swift County could save $5 million in the next few years for the health service and help create a solid financial position for the organization.
The hospital's debt was set to be taken on by CentraCare Health, which would provide capital for the system's building and equipment. This agreement wasn't finished at the end of 2019, but CentraCare and Carris Health have now created a new three-year agreement with the hospital district.
The district needs way to finance the debt and create capital and asked the city and county for help, Dan Enderson and Melissa McGinty-Thompson, a management team at the hospital's district, said.
By refinancing the hospital, $250,000 could be save a year in the community, Enderson said to commissioners.
“So it is significant (and could) make a big difference on the hospital’s performance going forward," he said.
If CentraCare takes the hospital district's debt, Enderson said it will not have to have a United States Department of Agriculture guarantee. The district is considering refinancing the 2013 bonds, because they have a larger interest rate.
CentraCare will also be investing $1.5 million in electronic medical records called EPIC, the administrative team at the hospital said.
Almost $3.5 million in capital needs will also be supplied by CentraCare.
Roof repairs, a new boiler, air handlers and other improvements needed in the hospital will cost $1.25 million, Enderson and McGinty said. Other needs for the hospital such as medical equipment will cost $950,000.
Other upgrades in the pharmacy are expected to be $300,000.
CentraCare is offering resources to help the hospital district as it takes over management, Enderson and McGinty said.
Maximizing agreement and resources is the main goal of the hospital district, Enderson said. This will ensure the hospital will operate at the best that it can.
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