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Neillsville City Council Discusses $1.5 Million Loan to Memorial Medical Center
Friday, January 11th, 2019 -- 9:56 am
Posted by Riley Hebert-News Director
-The Neillsville City Council discussed the status and payback of a loan they provided to Memorial Medical Center.
Before Memorial Medical Center’s deal with Marshfield Clinic Health Systems and before their plan to build a new facility on their own, Memorial Medical Center had planned on remodeling their current facility to provide more space to see patients. As the hospital was just getting on some solid, financial footing, they asked the City of Neillsville to take out a $1.5 million loan to provide to the hospital for the remodel. The city approved and MMC has been paying back the loan since then, even with the change in plans that have occurred since that time. During the Common Council meeting on Tuesday, the alderman heard an update on that loan. Some of the alderman had asked the city attorney to look into the matter because they were concerned about the status of the loan. There was language in the fine print of the agreement between the city and MMC stating that during the payback period of the loan, they couldn’t merge with another entity.
According to the representative of MCHS the city attorney was speaking with, MCHS and MMC are still their own entities at this time and will continue to payback and honor the agreement between the city and MMC. The city clerk informed the council that MMC just made their payment for this year and they have a remaining balance of $887,404.90. The council asked the city attorney to reach out to MMC again and ask them to have a representative at the next meeting to answer their questions.
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