Hospital seeks approval to borrow $6M toward $12M in capital projects, upgrades
Aug. 3—A total of $12 million in equipment and renovations during the next 12 months is planned by Meadville Medical Center (MMC) at its Meadville and Titusville hospitals.
Members of the Crawford County Hospital Authority voted unanimously this week to approve MMC's plan to borrow up to $6 million toward the project, according to John Swick, the authority's attorney.
Commissioners need to approve the project as being within the public interest of the residents of the county in order for the hospital to have tax-exempt status for the borrowing, Swick told commissioners at their work session Wednesday.
While approval is needed by both the authority and county government, neither would be held liable in the event of a default, Swick added.
Meadville Medical Center's total capital expenditures are expected to be $12 million between now and June 30, 2024, the end of this fiscal year, René Suntay, MMC's chief financial officer, told The Meadville Tribune. MMC has about $6 million in capital expenditure funds on hand and will borrow the other $6 million.
If approved by commissioners, the $6 million loan would be through Laurel Capital Corp. at an estimated interest rate of 5.4 to 5.75 percent, Suntay said. The final interest rate will be determined at the loan's closing.
About $4.1 million will be spent at MMC's Liberty Street facility, its acute care hospital, according to Suntay. Another $491,000 will be spent at the Grove Street outpatient facility in Meadville, and $2.6 million at Titusville Area Hospital.
The remaining $3.8 million is to be used toward other capital projects at the Liberty Street hospital, Suntay said. The additional projects are yet to be determined, but will enhance services at that facility.
"A big piece of this is an update of our cath lab," Suntay said. "It's about a $2.5 million project to upgrade its equipment."
A cardiac catheterization lab is a specialized area in the hospital to diagnose and treat cardiovascular disease. Doctors there perform minimally invasive tests and advanced cardiac procedures. The lab is equipped with imaging technology used to view the arteries and check blood flow to and from the heart.
"We want to make sure we've got the latest and greatest equipment," Suntay said. "Our equipment (in the cath lab) currently is six years old and we've been updating software, but newer equipment is more advanced will give doctors an even clearer picture. We're getting proposals now and we hope to have it installed by early next year."
The hospital wants to update its mobile X-ray machines as well, Suntay said. "We have equipment on a five to seven-year replacement schedule."
At Titusville Area Hospital, laboratory equipment is to be upgraded, plus renovation and expansion of the rural health clinic located at the hospital and the addition of a pulmonary clinic at Titusville, according to Suntay.
Pulmonology is a medical specialty dealing with diseases of the respiratory tract such as asthma, chronic obstructive pulmonary disease (COPD) and pulmonary hypertension.
At MMC Grove Street, the hospital will upgrade its outpatient operating room services, according to Suntay.
On Tuesday, members of the Crawford County Hospital Authority gave approval for MMC's $6 million borrowing plan on a 4-0 vote. Clark Hoffman, Steve Carr, Steve Kightlinger and Joe Roddy voted in favor following a public hearing at Shafer Law Firm in Meadville. Dean Fair was absent.
Commissioners are expected to act on the borrowing at their voting meeting next week.
Keith Gushard can be reached at (814) 724-6370 or by email at kgushard@meadvilletribune.com.
