Thompson already knows that the project is entirely feasible, based upon both internal and external projections. Initially, when the health system was applying for financing through HUD, the health system underwent a lengthy financial feasibility study. This study took into consideration a number of factors including population growth, the age of the local population, the payer mix, the age of and specialties among the medical staff, and predicted advances in technology. The conclusion was that Thompson will remain financially healthy through 2014 (the limit of the study), a conclusion that mirrored the findings of Thompson’s own Finance Department, which has conducted its own extensive feasibility studies.
Subsequent to HUD’s report, community lending practices among banks eased up and Thompson is now in a position to receive financing from a commercial bank. The terms are much more favorable than those offered by HUD, and Thompson will save hundreds of thousands of dollars on the closing costs and on the cost of refinancing existing indebtedness.
Currently, two things are occurring within the economy that very rarely occur simultaneously – both the cost of construction AND interest rates are at the bottom of a cyclical low. These two factors support moving forward now.
In addition, there are aspects of the project that were revised in the interest of accomplishing what needed to be done at minimal expense, including forgoing plans to relocate Respiratory Therapy. In addition, planners took a very hard look at fit and finishes, paring back a steel overhang and opting for more affordable flooring, for example.
As a community hospital-based health system, our goal is to ensure that members of our community achieve and maintain optimum health. We do this by offering quality diagnostic and preventative care, as well as general surgeries, rehabilitation services and care from specialists such as cardiologists and urologists. We strive to provide convenient access to this level of care for all members of our community. Providing it in up-to-date facilities ensures high quality.
Given the drops in the both construction and interest rates, this is the perfect time to move forward in ensuring that we can continue to fulfill our mission for years to come and continue to recruit and retain exceptional clinical professionals at a time when physician shortages, nursing shortages and the like are ever more acute.
Send us an e-mail or call 585-396-6155.
Mailing address is:
F.F. Thompson Foundation
350 Parrish Street
Canandaigua, NY 14424