HRRMC 2017-2018 Expansion Fact Sheet (As of 9/6/17)
Purpose of Expansion
Since 2008, HRRMC has added over 200 more employees to its payroll, and in the past three years alone, we have added 13 new services. All of this growth means we have outgrown our current space. The expansion will provide additional space for our providers and staff and allow for better access to services for people in our community.
Many of our providers are now located off-campus, and the expansion will relocate those practices into a new medical office building that will be part of the hospital. It is convenient for patients and increases staff efficiency to have all of our outpatient services in the hospital building. Physicians can communicate more easily between departments and have better access to all services.
Location of Expansion
The expansion is actually in two locations. HRRMC’s laboratory has experienced substantial growth in recent years and will add a one-story addition on the west side of the hospital.
A new three-story medical office building will be built in the grassy space south of the café between the staff and visitor parking lots. This space was designated for future expansion when the hospital was built in 2008. A portion of the parking lots to the east and west of the building site will also be used for the expansion. There will be separate entrances to the new medical office building for easier patient access.
Size of Expansion
The total area of the hospital expansion is about 48,000 square feet. This includes the three-story medical office building and the one-story lab addition. The three-story medical office building at its tallest point is 53 feet, 9 inches, which is below the 54-foot maximum allowed for commercial buildings in Salida.
An additional 158 parking spaces will be added to the west side of the hospital primarily for staff. This will make parking for visitors and patients much more accessible near the front of the hospital and the new medical office building.
Details About Expansion
Most medical practices currently located at the HRRMC Medical Clinics on Highway 50 will be relocated into the expansion. These include orthopedics, gynecology, neurology, pain management, urology, psychiatry, rehabilitation and Wellness U. The rehab/wellness space alone will be about four times the size of the current space at Highway 50. Plans include a walking track, a therapy pool, and a kitchen for hands-on occupational-therapy sessions and cooking demonstrations for Wellness U.
Practices in the hospital’s Specialty Clinic will also move into the expansion. These include cardiology, general surgery, vascular surgery, plastic surgery, gastroenterology, internal medicine, nephrology and pulmonology.
Since these practices will move out of the Specialty Clinic, additional space will open up for oncology and infusion. Infusion will increase from five to eight stations, and a blood-draw room would be conveniently located by medical oncology.
Projected Timeline
The anticipated timeline is 16 months.
Financial Impact
To fund the project, HRRMC will use existing cash reserves and has arranged to borrow an additional $10 million after the project is completed. We recently refunded our original 2006 net revenue bonds that were issued for $30.20 million at a 5.25% interest rate. The new loan, including the additional $10 million earmarked for the expansion, was issued at 2.96% for $33.36 million. HRRMC’s preliminary financial projections demonstrate that we will maintain overall financial benchmarks and performance indicators at favorable levels.
