OHH Posts Profit, Pursues $20M in Investor Credits
The Olney Hamilton Hospital Board of Directors received a positive financial update and a progress report on the construction of the new hospital campus during its Jan. 23 meeting. The board also heard updates on tax credit financing, renewed academic partnership efforts with Texas Tech’s rural medical program, and about a change to an upcoming hospital tour.
Board member Lonnie Rue, who chairs the board’s finance committee, presented the hospital’s most recent financial report, noting that OHH ended 2025 in positive territory, with year-todate net income of approximately $128,000, compared with a loss of more than $900,000 at the same point the year before — a year-overyear swing of more than $1 million.
Hospital CEO Mike Huff told the board that net patient service revenue is up more than 17 percent, while expenses increased by less than 10 percent, reflecting what he described as improved operational performance. Mr. Huff credited higher volumes and tighter cost controls for the gains and said the hospital is moving “in the right direction” financially.
The board also heard a construction update on the new hospital under construction across West Hamilton Street from the current facility. Project manager David Lilley said work continues to advance despite weather-related delays that have periodically slowed progress.
Mr. Lilley reported that roofing installation is underway and that exterior work is progressing, while interior spaces remain in early construction stages. He said the project team recently conducted an in-depth review of both schedule and budget and remains on track for substantial completion by late September or early October.
“We’re about at the 50-percent mark,” Mr. Lilley told the board, adding that as more of the building becomes enclosed, weather-related disruptions should lessen. He said construction teams have been able to recover lost time by adjusting work elsewhere in the schedule.
On the budget side, Mr. Lilley said recent reviews have reduced risk estimates, bringing projected construction-related savings closer to $1 million — an improvement from earlier estimates discussed at prior meetings.
Mr. Lilley said planned community tours would be moved from this week to the first week in February, due to frigid weather.
Chief Operating Officer Stasha Siegert updated the board on efforts to secure additional New Market Tax Credits tied to construction expenses. Ms. Siegert said increased competition among lenders has helped lower associated fees and that the hospital plans to pursue a second round of credits once construction spending reaches the $15 million to $20 million threshold required to make the application viable.
The cash infusion of about $20 million could be spent on hospital operations or construction, Mr. Huff said. He said the first round of New Market Tax Credits, about $3 million, was tied to operational expenses. At the same time, the next application will focus on construction costs as spending continues to ramp up.
Board member Lyndsey Miller also reported that the hospital is renewing efforts to partner with Texas Tech University’s rural medicine program. Mrs. Miller said representatives from Texas Tech’s leadership — including about a dozen officials overseeing rural affairs and institutional advancement — are expected to visit Olney later this month to explore potential collaboration opportunities with both the hospital and the local school system.
Hospital officials said the visit represents a renewed attempt to bring a rural medical education partnership to Olney, an effort the board has discussed in the past as a way to support long-term physician and nurse recruitment.
Mr. Huff also noted that the “Big Beautiful Bill” - a congressional appropriations bill passed last year - include $580 million for rural health facilities in Texas. Local hospitals have not yet learned how to apply for the money, he said.