Informational Meeting on Agreement Between Memorial Medical Center and Marshfield Clinic Health System, Part 2
Thursday, March 15th, 2018 -- 9:37 AM
-Memorial Medical Center held another informal meeting Tuesday afternoon to provide more information on their recent deal with Marshfield Clinic Health System.Ryan Neville, CEO and President of MMC, discussed applying for the USDA Loan and the changes that happened between the initial application and today.
"So, the process with the USDA is very complicated. You've got to not only apply to get the loan, there are certain steps that involves the community meeting, that involves architectural plans, having a construction manager, all these steps before they finally cut you a check. It even includes the land purchase."
"So, for the next 12 months, we worked on those things. And we worked really hard on the design of the building and what it should look like. So, that brought us from quarter 2016 to quarter 2017 when we resubmitted back to the USDA again to get an update on our loan. And a couple things happened. And they said, a few things happened. Your $40 million has dropped down to $33 million. And this was just in December of 2017."
"So we said, help us understand this. Well, two things happened. One, interest rates went up 1% and that changed our loan-ability. And two, something called contractual allowances went up 2%. And what that is, in healthcare, for every $1 we charge, we get a 41% reduction in payback. And that comes through all different government reimbursement rates, commercial reimbursement rates, but that's an average. Well, that went to 43% and those two things, we really coudln't control. Those were industry changes that occurred."
Coming up on Friday, Ryan will explain the options they were presented when the USDA Loan amount was reduced. You’ll be able to hear the full presentation from Ryan during the In Depth Program on 1370AM WCCN on Friday at 9am.
In Case You Missed It:
Part 1: cwbradio.com/news/index.php?p=news&fn_incl=1&fn_mode=fullnews&fn_id=20866
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