Hammond-Henry Hospital

Questions and Answers

What is the “Designed to be Patient Kind” capital campaign?

It is a campaign to raise funds to assist Hammond-Henry Hospital in the development of its facility plan. This plan involves new construction as well as renovation and demolition of existing buildings. This project will completely modernize the entire facility to better serve the patients and its communities for years to come.

Why is this campaign necessary?

A capital campaign will allow the project to be completed in its entirety. The margin of excellence (campaign goal of $1.5 million) is the difference between the total cost and the funds that will be available through tax-exempt financing and a contribution of reserves from Hammond-Henry Hospital. By investing in this project, HHH will be able to maintain its financial stability, yet attain all of the goals for such a broad capital project.

Why is the expansion necessary?

In 2003, the Illinois Department of Public Health noted the deficiencies within the 1953 building which formerly accommodated all of the inpatient beds. After that survey was completed, a master facility plan was developed that recommended extension of the main hallway to the south with further development of facilities to the west of the corridor. Demolition of the 1953 building to the east and the 1912 building in the middle of the facility was also recommended. Upon completion of this project the oldest part of the facility will be the 1994 emergency and outpatient services addition. The project is highlighted by the addition of a third operating room; the construction of a state-of-the-art therapy/rehab center; skilled and extended care with a 38-bed long-term care facility: also included are an aquatic therapy center, a new dining room, a courtyard, an outside rehab balcony, a new entryway and lobby. The development of a women’s health center and the renovations of pharmacy, the gift shop, volunteer area and chapel.

What will happen to the specialty clinics?

This project will allow for all diagnostic cardiology procedures to be moved from the specialty clinic space to the current physical therapy gymnasium. It will allow for better coordination of specialty clinics in the northwest clinic area.  The project calls for renovation of the first floor of extended care to accommodate specialty physicians as well as the wound and pain management clinics.

How much does Medicare reimburse for this project?

Hammond-Henry Hospital is designated as a “Critical Access Hospital (CAH).”  This designation is for rural hospitals that are 25 beds or less and have a shorter average length of stay. Medicare reimburses CAH’s the full cost of providing care to Medicare recipients. With nearly 60 percent of the patient volume from Medicare patients, Medicare will pay over the life of the building 60 percent of the cost of construction .

Don’t we already support the hospital through tax revenue?

Approximately two percent of all revenue comes from property taxes. This tax revenue is designated to off set a portion of employee benefit expenses.

Why is the capital campaign goal $1.5 million?

$1.5 million represents roughly 10% of the hard costs of the project. A community survey, which included interviews with community members, also determined that this was an appropriate capital campaign goal.

How will the project be funded?

The project will be funded by $17.5 million in general obligation bonds with a very favorable interest rate; $1.5 million from the Designed to be Patient Kind campaign; and $2 million of contributions from Hammond-Henry Hospital. Funds in excess of $1.5 million will be used toward essential enhancements of the project.

Why are pledges being sought?

While the capital campaign will not raise the total cost of the project, it allows the community to take an active role in supporting this project. Pledging enables donors to be more generous and budget contributions over several years (up to 5-year pledges).

Why the decrease in the number of beds for  long term care?

There are currently 33 beds in extended care and 25 beds in skilled care.  Due to various operational issues, only 47 beds are being used. The replacement facility will have 38 beds on a single floor, with plans for 18 private rooms and 10 semi-private rooms.  By downsizing the number of beds, the facility can be staffed more efficiently. Also, reducing the size of the long term care unit actually benefits Medicare reimbursement to the hospital because of Critical Access Hospital status/designation.

Is Hammond-Henry going to be part of a larger system?

Hammond-Henry is an independent, public district hospital that works with various area hospitals to coordinate care of patients.  The doctors of Trinity Family Medical Associates are a part of the Trinity Regional Health System, yet support the services provided locally.  National health reform could provide incentives or at least encouragement in the future to partner with other organizations to better coordinate care of patients.  Until then Hammond-Henry will continue to work independently, partnering with regional providers as needed to provide the best level of care.