By Tia Lynn Ivey
A drop in interest rates on USDA loans could mean huge savings for Morgan Memorial Hospital (MMH), if they get approval for a $35 million loan to construct a new hospital before the end of the year. According to Kyle Wilkinson, CFO for MMH, The USDA market rate for all direct community facility loans has dropped to 2.375 percent until December 31, 2016.
MMH conducted their feasibility study using a 3.75 percent interest rate to estimate repayment of the loan. “Receiving approval for the USDA loan during the current quarter would allow us to lock in the long term financing at a rate of 2.375 percent. This is a savings of approximately $7 million over the life of the loan when compared to the conservative rate of 3.75 percent used in the feasibility study,” explained Wilkinson. “Any funds that we are able to save in areas such as interest expense will allow us to enhance the patient care we are able to provide.”
Other good news was reported to the Morgan
Memorial Hospital Authority (MMHA) at the monthly meeting last Thursday. For the month of August, MMH brought in a net income of nearly half a million dollars. According to Wilkinson, “MMH had a Net Income of $346,340 for the month of August 2016 bringing the FY 2017 Year-to-Date Net Income to $487,645. During the month of August our Average Daily Census was 16.4 and collections for Aug 2016 were $1,151,756.”
Board members and guests at Thursday’s meeting were wearing pink to officially kick off Breast Cancer Awareness month activities. The MMHA announced that all nine board members have completed the requirements for the GHA (Georgia Hospital Association) Trustee Certification Program. And Board Education was provided on the Georgia Rural Hospital Tax Credit Program that has been approved by the legislature for 2017, 2018 and 2019.