County commission OKs IDA bond for Southeast hospital

Southeast Missouri Hospital will save $1.5 million in interest payments and secure about $50 million for upgrades under an Industrial Development Authority bond issue approved Thursday by the Cape Girardeau County Commission.

The bond issue, $110 million in all, will allow the hospital to refinance two earlier IDA bond issues and some private financing, as well as make a major investment in new equipment and technology upgrades, hospital vice president David Strong said.

"Does this provide any new jobs?" Presiding Commissioner Gerald Jones asked hospital representatives when the proposed bond issue was presented.

Hospital president and CEO Jim Wente said that recent expansions have provided numerous new jobs, and the latest bond issue would help secure those jobs by taking pressure off the hospital's budget and allow for equipment purchases and expansion of the Healthpoint operation on Kingshighway. "We added a lot of jobs with Healthpoint," Wente said.

Financial analyst Jerry Sanders said the biggest benefit to the hospital would come from the refinancing of existing debt. The hospital has put almost $100 million into expansions in recent years, he said, and spent $60 million on equipment over the past five years.

The hospital needed to help its bottom line by shifting future equipment purchases, minor construction and technology upgrades to bond financing, Sanders said.

The expansion of Healthpoint, already underway, will cost about $3 million, Strong said. The hospital plans another $8 million of "minor" construction around the main hospital campus on Broadway, $26 million on new equipment in coming years and $8 million on computer technology upgrades.

The IDA approved the bond issue Monday following a public hearing. Commission approval was also needed for the project to move forward, Jones and Commissioner Larry Bock voted for the bond issue; Commissioner Jay Purcell abstained from the vote after announcing he had a conflict of interest because his wife is currently a candidate for a job at the hospital.

rkeller@semissourian.com

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