OHH OKs budget, looks to March 13 hospital bids

The Olney Hamilton Hospital board of directors approved a new budget for its 2025 fiscal year and got an update on the March 13 bidding process that will determine the construction costs for the new hospital.

OHH hired Guide Architecture of Dallas to design the hospital, Trinity Hughes Construction of Wichita Falls as the project manager and the Skiles Group of Dallas as general contractor.

Dave Lilly of Trinity Hughes updated the board on the March 13 bid day, when subcontractors will turn in their bids for the project and the board will learn how much the hospital will cost to build.

Guide, Trinity Hughes and Skiles have been adjusting the plans to fit within the hospital’s $27 million budget, and until recently, believed they could build the 16-bed hospital with the funds available.

Mr. Lilly told the board that although the plans and budget are complete, recent economic turmoil such as the stock market downturn and President Donald Trump’s steel tariffs have added uncertainty to the process.

“That alone has got me more scared than anything else. Our steel suppliers are going up 8 percent next month. This project undoubtedly will be affected by the chaos.”

He said the current budget has about $1 million in slack if the bids come in higher than expected. The hospital also is pursuing federal tax credits awarded to new hospitals that provide care for indigent populations. Olney qualifies for the tax credits but must spend the money first to apply for the credits, OHH board member Ron Rogers said.

The OHH board cut obstetrics services, beds and 14,000 square feet from the plans last year, and raised taxes, when it learned that the general obligation bonds that voters approved would not be sufficient to complete a new hospital.

The board sold the project to voters and community leaders on the promise that services would expand and no new taxes would be needed to service the bonds.

If the bids come in significantly higher than expected, it is not clear how the hospital would proceed.

“There is no way to skinny it up,” Mr. Lilly told the board. “We may have to ask the subs to make suggestions.”

Mr. Lilly said Skiles plans to break ground on April 14. The construction timeline is projected at 16 to 17 months, putting completion around September 2026.

The OHH board will begin meeting in April at the Olney Cumberland Presbyterian Church’s fellowship hall so that the OHH Education Building can be torn down to make way for the new hospital, Mr. Lilly said.