Hospital set, now waiting approval from USDA

CHELAN - Everything for the new hospital is going swimmingly. The vote passed, financial information in order, and the facility was just approved by the State Project Review Committee on Thursday, July 27. (see story page 2)

All that’s left is to send in the application to the USDA, which according to Wipfli Director of Strategic and Capital Planning Kelly Arduino, should be a piece of cake.

“The program has about $7 billion in loans they have made to healthcare organizations, and 75 percent of that to critical access hospitals,” Arduino began at the Lake Chelan Community Hospital Board meeting on Tuesday, July 25. “The program has been essential for rural hospitals in need of large renovation projects or replacements, and its rates and terms are very advantageous and could not be attained elsewhere.”

Hence the decision to apply for the loan program.

Arduino explained the interest rate is fixed at 3.275 percent with no ongoing or application fees attached.

“The documentation is very standard and keeps legal fees down so you don’t have to worry about ongoing covenance,” Arduino said.

According to Arduino, the only hinge left is an examined financial forecast from a CPA firm and an environmental assessment, which Wipfli already submitted to the state. After the state is done reviewing the application, Arduino said they will likely “comeback with some questions and clarifications” before the application goes to Washington D.C for final approval from the national office.

The goal is to have approval by September and lock in the lowest possible interest rate (since it went down from last quarter).

“So we are just waiting for the wheels of USDA machine to move forward and be given the thumbs up,” Arduino said. “I don’t see any problems with approval, but I don’t know what day that will happen either. I have worked on over 50 financing projects and never had one disapproved.”

Construction is set to begin early next year.