Olney Hamilton Hospital Briefs

With construction of its new hospital facility moving steadily toward completion, the Olney Hamilton Hospital board spent much of its March 27 meeting discussing future campus plans, finances and equipment needs.

Hospital Administrator Michael Huff said an ad hoc committee recently reviewed three possible options for dealing with aging hospital buildings on the campus, including the 1947 and 1964 structures.

The first option would involve seeking state and federal funding to renovate the older buildings, though Mr. Huff said that approach would place significant restrictions on how the facilities could be used. Another option would be to remodel portions of the 1964 building, though officials are concerned about the costs relative to the benefits of investing in the aging structure.

A third option would involve vacating the 1927 building, demolishing the 1964 building and constructing a new support services building designed to last as long as the hospital’s new facility.

Hospital officials plan to present the options to the hospital foundation during its April 13 meeting and seek feedback on possible fundraising efforts to support whichever option is ultimately chosen.

The board is also preparing to address the hospital’s annual participation in the Intergovernmental Transfer program. The Intergovernmental Transfer (IGT) program is a funding mechanism used in Medicaid financing that allows local government entities — such as hospital districts — to help the state of Texas draw down additional federal healthcare funds. Mr. Huff said a resolution will likely appear on next month’s agenda authorizing participation in an amount not to exceed $2 million, though the exact figure will not be known until shortly before the June deadline.

In other business, administrators recommended purchasing an additional C-arm imaging unit after discussing the heavy use of the hospital’s current machine.

Mr. Huff said the existing unit recently required about $11,000 in repairs but is again functioning properly. Because the equipment is used frequently by multiple providers — and one physician previously transported his own unit from Houston for use — officials believe a second machine would improve availability and provide backup. One unit would eventually be moved into the new hospital building.

Financially, Mr. Huff reported that the hospital continues to see strong operating performance in several service lines. Wound care generated approximately $500,000 in net income, surgical services produced about $4.5 million, pain management brought in roughly $450,000 and sleep studies generated about $100,000.

“These volumes are picking up and operations are looking good,” Mr. Huff said, adding that the hospital is entering the transition to its new building from a strong financial position.

Hospital officials are also working to address a housing issue affecting traveling nurses. Mr. Huff said the hospital recently learned it must vacate units it leases from the local housing authority by the end of May. The hospital currently houses four traveling nurses in those units and is reviewing alternative housing arrangements.

Meanwhile, construction on the new hospital continues to progress smoothly, according to project manager Dave Lilley. The facility recently completed an 80 percent inspection by the Texas Department of State Health Services.

Inspectors requested only minor adjustments, including a door width change and a modification related to the nurse call system, which Mr. Lilley described as typical findings during an inspection at that stage of construction.

The project remains roughly $1 million under its overall budget, and Mr. Lilley said the team intends to maintain those savings if possible so the funds can be used for other hospital needs.

Equipment ordering for the new facility has also begun. Items will be delivered to a warehouse in Dallas before being shipped to Olney near the end of the construction process.

Board members also briefly addressed concerns raised by residents about water pooling near the construction site during recent rains. Mr. Lilley said the issue is temporary and related to ongoing construction. Once the project is complete, the site’s drainage system will direct water east and south toward Hamilton Street.