Cost of renovating HCHC rural health clinic more than projected

By Grace King, Mt. Pleasant News

Despite higher than expected bids for the project, the Henry County Health Center is moving forward on renovations for a rural health clinic.

The hospital received three bids on the project, the lowest of which was Frank Millard and Company with a bid of $630,500. The project was projected to cost $381,500.

?It took us a little bit by surprise,? HCHC CEO Robb Gardner said during the board of trustees meeting on Tuesday, April 17. ?With that, you?re looking at 26 percent higher than what we would like it to be.?

HCHC is looking to create a rural health clinic and move Dr. Michelle Tansey?s offices to the second floor of the hospital. Even with the higher bids, Gardner said they will continue to move forward with that plan.

Breaking down the numbers, the cost of the project will be approximately $212 a square foot, which is more typical of a new construction project rather than a renovation project like the rural health clinic.

The additional costs that weren?t anticipated by the hospital were primarily in the mechanical, electrical and plumbing aspect of construction. While Gardner admitted their original estimate was a little low to begin with, the problem with the higher bid also lay with the current heightened bidding costs.

Before the board approved moving forward with the bid, board president Rob Meyer asked Gardner what the options would be if they were to rebid the project.

Because of bidding guidelines, the hospital would have to go back to the drawing board and replan the work before rebidding the project, which Gardner said would take a minimum of three months.

This, however, is a problem for the project, which hospital administration would like to see completed by the end of August.

?If we?re comfortable with (the higher bid), we need to proceed,? Meyer said. ?I think timing is a bigger factor than additional costs.?

?Don?t like it, but got to do it,? board member Ron Clouse added after the trustees voted to move forward with the project.

Other construction projects the hospital is looking to in the future are repaving the parking lot and remodeling the Bouchey Eye Surgery clinic.

Gardner told the board they are still working with an engineer on the design of the parking lot and hope to have recommendations by May or June. The parking lot remodel will take three to five years to have less of an impact on the hospital?s budget and minimize the impact on employees and patients.

The cost of clinic remodel improvements will be paid back to the hospital through the lease Bouchey Eye Surgery has with the hospital. Dr. Reed Bouchey wants to expand into an old suite for administrative purposes that has sat empty in the hospital for almost two years. The quote for renovations is $127,000.

In addition to approving construction projects, the board also approved purchasing new equipment for the hospital. That includes new radiology equipment and equipment requested by the new OB-GYN for his services.

In other news, HCHC is in need of two more nurses. Gardner said they are searching and advertising for the positions, continuing to work with and partner with the regional colleges and universities.

Now that the future of the OB Department is secure after months of searching for a new OB-GYN, Gardner added that they are beginning to get applications for nurses in OB.

Gardner also discussed with the board the outcome of the Iowa Hospital Association Financial Indicator report. Although the report ends with fiscal year 2016, it is the most accurate reflection of how HCHC compares to their peer hospitals.

?Overall, pretty positive compared to Iowa and our national peers,? Gardner said. ?We sit a lot in the media. There?s obviously room for improvement, but also too I feel good we?re not in the bottom range.?

The next board of trustees meeting is Tuesday, May 15.