Kirby Replacement Hospital Project
Last Updated: August 2010
Q: Where are you planning on building the new hospital? UPDATED!
A: The hospital will be built at the Market Street and I-72 exit northeast of Rick Ridings on a new street called Medical Center Drive. See the rendering in the Photo Gallery of the new hospital site, as well as additional renderings showing the new hospital from a variety of angles.
Q: How far along are you on the replacement hospital project? UPDATED!
A: We have secured the State's approval to move forward with the construction of the hospital. The hospital will be financed through a bond issue insured by the US Department of Housing and Urban Development (HUD). Our original estimated time for approval from HUD was the end of April, but HUD has been inundated with other hospital’s requesting the same type of bond insurance we are asking. Our application has been deemed complete and we are keeping in regular contact with HUD to better estimate our loan commitment from them and our subsequent ground breaking date.
Q: Will you rename the new hospital?
A: Yes, The John and Mary E. Kirby Hospital will be renamed the Kirby Medical Center at its grand opening.
Q: Given the current economic challenges, does Kirby feel confident it can build a hospital that is affordable? UPDATED!
A: While the economic climate has changed since we began planning the replacement facility back in 2005, our need for a new and modern facility has not. Rural, primary healthcare is some of the most affordable and important healthcare delivered across the country. Compared to other hospitals our size built across the nation in the last three years, the new Kirby Medical Center ranks third to lowest in estimated construction cost per square foot.
Q: What is the economic impact of Kirby Hospital on our community?
A: Kirby Hospital makes a tremendous and positive economic impact in Piatt County. We employ 180 people and our annual payroll equals $6.8 Million. The replacement hospital project will create an estimated 120 new construction jobs and infuse our local economy with new business for our restaurants, hotel and shops. When the community chooses to have their healthcare services at Kirby, (laboratory, imaging, physical therapy, surgery), they are also helping to keep our local economy strong. Dollars spent at Kirby stay in Piatt County. Additionally, Kirby provides needed financial assistance to those who cannot afford to pay for their medical care. In 2010, Kirby Care Assistance provided an estimated $416,000 to the families of Piatt County.
Q: What local labor will be used for the construction of this project?
A: Our construction management firm considered “local” to be within 100 miles of Monticello and any contractor with financial wherewithal, bonding, competitive pricing, and demonstrated level of healthcare experience was considered. HUD has stringent requirements on the bid process and the qualifications of the bidders. Our project was advertised extensively in trade journals and interested parties were all given an equal chance to participate. The construction manager has received competitive bids from areas as close as Champaign, Urbana, Bloomington, Decatur, and Springfield.
Q: Will Kirby Hospital continue to be in the Health Alliance network?
A: Kirby Hospital has been in the Health Alliance network for many, many years and we intend to remain valued partners with Health Alliance for all our hospital services, including Convenient Care, lab, imaging, physical therapy, surgery, and sleep lab.
Q: Has Kirby decided what it will do with the State Street Campus once the move takes place?
A: We continue to explore and discuss possibilities for the current hospital and doctor's building once we make the move. We are in discussions with the Piatt County Board and Nursing Home about usage of the campus, as well as the Allerton Library Board.
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. There will not be, and cannot be, any special tax assessments imposed on our community to build the new facility.