KIRBY REPLACEMENT HOSPITAL PROJECT
PHASE I - FAQ’s
Q: Kirby Hospital is known as a Critical Access Hospital (CAH). What is a CAH?
A: Kirby Hospital is an independent not-for-profit hospital and not part of any other healthcare organization. We are also a CAH which means the Federal Government recognizes Kirby as a rural, acute care hospital that has met federal program certification requirements for daily in-patient census count (25 or fewer), average length of stay and provides standard services. In return, a CAH receives cost based reimbursement (CBR) from Medicare for hospital services. Medicare pays 101% of reasonable costs for services provided to Medicare patients. Reasonable service costs can include salaries, supplies, equipment, and building costs. The current Kirby payer mix is >60% Medicare.
Q: Will our taxes be increased to build a new hospital?
A: No. As a private not-for-profit hospital, we receive zero tax dollars for hospital operations. The only tax dollars allocated toward Kirby are those which support the ambulance service which currently operates at a loss. There will not be, and cannot be, any special tax assessments imposed on our community to build the new facility.
Q: How will the new hospital be funded?
A: CAH Replacement Hospital Projects are seen favorably in today’s markets. Funding will be made possible through a combination of our current assets, cash reserves, operational revenue, gifts from a comprehensive capital campaign and tax exempt bonds.
Q: Where are you planning on building the new hospital?
A: Kirby has engaged the services of a professional facility project management firm to help evaluate possible site selections to ensure they can meet the needs of a replacement hospital. As a part of their evaluation, they are conducting soil studies, investigating projected growth and traffic patterns, property easements, utility needs and land appraisals to name a few. We anticipate finalizing the site selection process within the next 90 days.
Q: What are your plans for the Kirby Hospital building once a replacement hospital is open?
A: While it is too soon to speculate on what will become of the current Kirby Hospital campus, the Board of Directors will be giving careful consideration to the options, guided by their intent to ensure our current friends and neighbors are not adversely affected.
Q: What are some of the next steps during the first phases of a replacement hospital project?
A: There is much work to be done. Fortunately, we are working with professionals who have successfully navigated the way for others who have embarked on the replacement hospital journey. We are nearing the completion of our many strategic planning, feasibility and market assessment studies. We have identified the key services to expand and likewise, the physicians and allied health professionals to engage in order to prepare for our future growth. Once the site is selected and acquired, we will be working toward the completion of our Certificate of Need Application for the State of Illinois Health Facilities Planning Board. We will also engage an architectural firm to develop a master facility strategy and design. From this point, we will begin pursuing capital for the project in order to begin.
Q: How long will it take to build a replacement hospital?
A: We anticipate, that after all of the preliminary steps are complete, and from the time ground is broken on the selected site, the project could be complete mid-year 2011. An updated timeline will be published once further information becomes available.
Q: Will you rename the new hospital?
A: John and Mary Kirby were two of our community’s most generous supporters and their gift will forever be remembered and memories honored. The new hospital will embody our rich past, reflect the vibrant, family-oriented community we are today while helping to shape the future of healthcare for Monticello and Piatt County.
Throughout each step of the Kirby Replacement Hospital Project, we will provide the community with further information and details about their new hospital. Updates will appear on our website and in the Healthy Directions Newsletter. |
