Cash drain halting hospital construction – Tampa Bay Business Journal:

The Tampa-based health system delayedf construction of a new hospitalin St. Louis and abandoned planx to build inLos Angeles. An endowmentg that’s shrunk from $8 billion to $5 reducing interest available foroperating funds, was a key factor in the decision, Ralph Semb, board chairman, told the sister publication . Falling reserves, a tough bond market and slowing charitablew donations have forced nearly half of the hospitals surveyed by the topostpone projects. The ripple effectws of the capital crunch on employment are greatf causefor concern, Rich Umbdenstock, AHA president and CEO, said in a Jan.
22 “Stopping these projects also means new jobs are not created within the health care field forconstruction workers, contractors, IT specialistes and others,” Umbdenstock said. has put on hold plansx for outpatient facilities atthe 30-acrwe McKinley campus, south of the main facilitiesd at the . Moffitt, which hopews to tap public funds forthe project, is waiting untilo the state’s budget outlook improves, said spokeswoman Michelle Foley. Less cleare is the status of , under construction since 2006 at Statwe Road 54 and Little Road to replace in New Port The new hospital expects to open inlate 2010, a recentf release said.
A trade unionb executive, speaking on background, said workers have been pullec off the job and construction appears to be butMark Wood, project manager for , said constructio n has not stopped and the Agency for , whicgh granted a certificate of need in has not been notified that the projecrt has ceased. “I can’t say if it’w stopped, but I know it’s slowesd down,” said Cindy Jolly, Pasco Count development director. Calls to Community Hospital and its parent in Nashville, were not returned. But nearinfg completion are projects that were funded and under way beforr theeconomic downturn. in St.
Petersburg expectse to finish a 240-bed replacementy hospital latethis year, as does St. Joseph’sz Hospital-North, a 108-bed facility on Van Dyke Road inHillsborouggh County. Moffitt plans to open a 36-bed expansion on its main campus in March and in April to move into newly built quarters forits for-profit subsidiary, Hospitals are looking for retur on investment for their construction projects, said Carl CFO at , which will open its $4 million Carillon Surgerh Center for outpatients in April. Economic condition have caused all health care executives to closelyexamine projects, said Bill Ulbricht, St. Anthony’sa president. Every quarter, St.
Anthony’s reviews its cash position and expected capitall expenditures sixyears out, Tremonti said. There’s potentiall relief for cash-strapped hospitals in the $787 billio n economic stimulus package signed by President Barack saidFrank Fleischer, chairman of the publiv finance practice group at the law firm in Tampa. The packagee has a provision for taxable bond optionss that would give buyers tax It also temporarily repeals the alternative minimu m tax for privateactivity bonds, putting them on a level playing field with other bonds, and has incentived for banks to buy bonds issuec by nonprofit hospitals through a health finances authority.
“Hopefully the stimulus package is going to encouragde people to come back into the market to buy Fleischer said.
blogspot.com