updated: 7/11/2012 8:17:42 AM

New Cameron Hospital Clears Financing Hurdle

InsideINdianaBusiness.com Report

A federal loan commitment has cleared the path for construction of a new Cameron Memorial Hospital in downtown Angola. The United States Department of Agriculture says it is committing $47 million to the project, which is expected to break ground this fall.

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July 10, 2012

News Release

Angola, Ind. -- Cameron Hospital has received a $47 million loan commitment from the United States Department of Agriculture (USDA) Rural Development Community Facilities program. The long-awaited financing decision clears the path for construction of the new Cameron Memorial Community Hospital at the 13+ acre site in downtown Angola.

“With design of the new hospital complete, the building team in place, and approvals obtained, financing was the remaining challenge,” said Greg Burns, Cameron Memorial Community Hospital President and Chief Executive Officer. “Securing USDA financing was a complex and long process, but the unique and financially attractive terms of the USDA loan make it well worth the time and effort to accomplish.”

“Throughout the loan application process, members of the Cameron Hospital Board remained steadfast to achieving the USDA financing obligation,” said Burns. Cameron also received important support from Indiana’s Congressional Delegation for its financing application.

“With the complexity involved in seeking financing via a government agency, Cameron sought assistance from our Members in Congress,” said Ken Dunlap, Cameron Hospital Board Chair. “We particularly appreciate the support provided by Congressman Marlin Stutzman. His advocacy on behalf of the Cameron project was extremely helpful.”

Cameron will receive a $37 million Direct Loan from the USDA Community Facilities Program with a fixed interest rate of 3.375% for 40 years. The remaining $10 million of the $47 million total loan will come from the USDA Guaranteed Loan program with a market-based interest rate and 25 year term. The Farmers & Merchants State Bank, headquartered in Archbold, Ohio, and with a full service bank in Angola, will be the lender participating in the Guaranteed portion of the loan.

“The results of a comprehensive financial feasibility study demonstrated that Cameron has the financial strength to take on the construction project”, said Barbara Short, Board Treasurer. “This was a big asset during the loan application process.”

With project financing secured, Cameron officials say they are ready for the construction phase of the $42 million building project. “We truly appreciate the enthusiasm from City of Angola Mayor, Dick Hickman, the Plan Commission, City Council and Department staff. They have all assisted in making the planning process positive and smooth. We now eagerly anticipate the mobilization process for the start of construction,” said Dave Goodwin, Board Vice-Chair and Chairman of the Construction Committee. In the coming weeks, Hagerman Construction, Fort Wayne, the construction manager, will seek bids for the project.

“Ground breaking and the start of construction is anticipated this fall,” said Dunlap. The overall 30-month construction schedule calls for occupancy of the new hospital 18-months following the start of construction, with renovation of the existing building and completion of the entire project following 12-months later.

Planning for the new Cameron Hospital has been under way for over three years. A number of project milestones preceded the announcement of the USDA financing commitment:

• December 2008—Under the Board Chairmanship of Gary Hohenberger, it was announced there would be a new Cameron Hospital, and that it would be located at the current location in downtown Angola and on adjoining land south of the hospital, to be acquired. The economic climate at the time precluded setting a date for the building project.

• May 2010—Under the Board leadership of Terry Vanette, the Project Building Team was introduced:
o Morrison Kattman Menze, Fort Wayne: Architectural Firm;
o Hagerman Construction, Fort Wayne: Construction Manager;
o Jim Ingledue Construction, Angola: Lead Local Contractor; and
o Chris Smocke and Associates, Milwaukee, Wisconsin, Cameron’s Owner’s Representative.

• Summer-Fall 2010—Financial Feasibility Study Completed (BKD, Fort Wayne); Lancaster Pollard, Columbus, Ohio, engaged as project financial advisor.

• December 2010—Cameron Hospital submitted its USDA financing application.

• January 2011—Following completion of the building Design Development phase, announcement of the hospital Board’s approval to proceed with the hospital project.

Hospital staff and physicians have been heavily involved in the building design process. “A large and complicated undertaking like Cameron’s replacement hospital project can’t be successfully accomplished without the committed and active engagement of hospital employees and community physicians,” said Burns. Opportunities for input to the design of inpatient rooms, operating rooms and procedure rooms included full-scale mock-ups of the rooms. According to Todd Brandon, MD, general surgeon, and a member of the hospital Board of Directors, “Feedback from physicians and hospital employees resulted in design improvements. The hospital design reflects the best thinking of physicians, employees, and architects, and will provide a facility that is responsive to patient’s needs for years to come.”

The new hospital will feature 25 all private patient rooms including:

18 Private Rooms for Medical Surgical Patients

2 Private Rooms for Special Care Patients

5 Private, Family-Friendly Rooms for Maternity Patients

3 Labor, Delivery and Recovery Rooms for Childbirth (Not included in bed total)

Ellen Bisson, Chief Operating Officer, provided leadership for the facility design efforts. “The new Cameron Hospital will deliver a first among hospitals throughout the region. All in-patient rooms will feature a ‘same-handed’ design that promotes patient safety, staff efficiency and noise management,” Bisson said. The layout of each room type will be exactly the same. Beds, bathrooms, equipment and supplies will all be located in the same place in each room. This standardization promotes patient safety and staff efficiency. With Cameron’s rooms, caregivers will approach the patient from the right side of the bed, which is viewed as the optimum caregiver location. And, since bed headwalls in adjoining rooms will not be mounted back-to-back on a shared wall between rooms as with traditional mirror image room design, there will be less noise transmission between rooms to disturb patients.

The new Cameron Hospital will cost $42 million and total 126,400 square feet, including 110,470 square feet of new construction and 15,930 square feet of renovated space.

Additional facility features include:

3 Operating Rooms—Each 600+ Square Feet in Size to Accommodate Additional Surgical Specialties and Procedures

2 Outpatient Procedure Rooms

12 Private Ambulatory Surgery Patient Care Rooms

State-of-the-Art Radiology Department, Including a Dedicated Women’s Center

Expanded Emergency Department With Separate Ambulance and Walk-in Patient Entrances

Ground Floor, Convenient Access to Rehabilitation Services

Non-Denominational Chapel

Large, Accessible Community Education Facilities

The exterior appearance and mass of the new hospital is designed to complement the architectural style of buildings in downtown Angola and the neighborhood of which Cameron is a part. Reflecting on the importance of neighbor support for the project, Board Member and former Chair, Terry Vanette stated, “Cameron Hospital could not have expanded at the current site without the support of neighbors south of the current hospital who agreed to sell their homes to Cameron. The hospital is grateful for their support of the vision for the new Cameron Memorial Community Hospital.”

“Having secured financially attractive, long-term financing for the Cameron Hospital project is a crucial milestone,” said Burns. “We are now ready to build the hospital that will support Cameron physicians, employees and auxiliary members as they deliver exceptional personal care, and high quality health and wellness services to people in the tri-state region…Well into the FUTURE”.

Source: Cameron Memorial Community Hospital

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