Sleepy Eye hospital expansion explained

City votes April 25 on $4.5 million in bonds

By FRITZ BUSCH

Journal Staff Writer

SLEEPY EYE -- Sleepy Eye Hospital Administrator David Hartberg explained the benefits of the proposed $4.98 million hospital expansion and renovation project Tuesday night in the Sleepy Eye City Council Chambers.

Hartberg spoke for about 30 minutes and answered questions for a half hour at the meeting attended by a dozen people. He gave a recent history of the clinic and hospital board, explaining that the two entities became one earlier this year.

Hartberg explained the virtues of the project as creating a more patient-friendly, medical center environment that would allow higher-quality health care with larger labs for all new diagnostic equipment to meet long-range needs. Computer areas would allow rapid handling of patient information.

The new 12,000-square foot hospital expansion would combine the clinic with a lab, radiology, x-ray, obstetrics and mammograhy department and a central nurses station that would connect with the existing hospital's first floor. The basement of the expansion building would be used for storage or future uses.

The project would include upgrading the existing 20-bed hospital with a sprinkler system and new heating, ventilation and air conditioning.

If Sleepy Eye voters approve the $4.5 million general obligation bond issue ballot April 25, low-interest USDA financing would be used. If hospital revenues are not sufficient to pay $250,000 annual principal and interest payments, Sleepy Eye will levy taxes as needed to pay for the bonds as they become due.

Hartberg said the hospital is in good financial condition. He doesn't think a tax levy will be needed to repay the bonds. Hospital reserve funds would not be used for the project but may be tapped for future technology needs.

The short-fuse bond vote is needed because no state referendums are allowed within 19 weeks of the fall primary election due to redistricting.

Hartberg said the project, which could be completed as early as fall 2003 or early 2004, would help the medical center recruit a new physician or two. The hospital would like to attract a female obstetric doctor.

Sleepy Eye's two existing doctors recently signed five-year service agreements. They staff the Morgan Clinic four half-days per week.

Hartberg said now is the time to improve and expand the hospital and create a win-win situation..

"Our current hospital is small and antiquated," Hartberg said. "The new building is nothing fancy but would be adequate for new lab equipment to enable more in-house testing. It'll be good for the hospital and community. The USDA interest rate is the lowest you'll probably ever see. A "no" vote would take things back to the board. A smaller project with a fall referendum vote would be likely."

The hospital recently hired nurse Sue Ahlness. She is studying to become a nurse practitioner by next year. She would be able to do anything a doctor does, under a doctor's supervision.

Another public meeting on the project will be held at 7 p.m., Thursday, April 18 in the Sleepy Eye City Council Chambers.