Patten: Hospital submits final paperwork for $32 million loan

St. John’s Lutheran Hospital officials have submitted a final application — a 70-page document — to the federal government for funding for its new 77,000-square foot facility, and if approved construction on the new hospital could begin within months.

St. John’s Lutheran Hospital CEO and Administrator Bill Patten said if all goes as well, the hospital could learn the results of the low-interest, $32 million loan application by January with construction to begin soon afterward.

Hospital officials submitted the application to the Housing and Urban Development office, which included information concerning SJLH’s financial performance the last five years, area demographics and analyses and revelations about its debt, which Patten described as “minimal.”

SJLH is seeking a $32 million loan on the project estimated to cost $35 million. Currently, SJLH is seeking the term loan at 5½ percent interest.

“We don’t like to talk definite dates, but we’re optimistic,” Patten said. “We’re just saying the spring, but I know the contractor would like to get started in April.”

The contractor on the project is Swank Construction, Co., of Kalispell, a firm in which Patten is confident to complete the job to specifications and in a timely manner.

“They built the new hospital in Whitefish, so this is not something new to them,” said Patten of the project that is expected to take18 months.

During the 18-month construction period, Swank is expected to hire as many as 100 to 120 workers as the facility is built, 20 percent of whom will be local hires, Patten said.

“They (HUD) told us it should take 90 to 120 days to hear back. We’re hoping to learn something in January,” Patten said.

St. John’s Hospital currently includes 56,000 square feet, with the new facility adding another 77,000. The existing facility still will be an integral part of the SJLH operations, Patten said. After completion of the new building, SJLH’s Business Office, Home Health and Hospice and its Rehabilitation Center will keep offices in the current building, with the Rehab Center growing to about twice the size it is now.

“We’ll continue to make good use of this facility,” Patten said. “I see the use of this building for another 10 or 15 years.”

While SJLH is seeking $32 million in funding, only about $22 million of that amount is for bricks and mortar, Patten said indicating there would be substantial upgrades to critical areas of the hospital.

While the hospital will not increase the number of patient beds from 25, patients will see improvements in those rooms, Patten said. Currently, patient rooms are about 166-square-feet. In the new facility, patient rooms will consist of about 300-square feet and patients no longer will have to share a bathroom. They will have their own bathroom and shower.

Asked about the decision not to increase the number of patient rooms, Patten said SJLH must remain at a maximum of 25 beds for its type of hospital. However, the day of the interview, only 15 of the 25 patient rooms were occupied or about 60 percent, so the demand for more rooms is not imminent.

Patten said there are other improvements in the new facility, specifically mentioning the number of emergency-room beds increasing by two-thirds, going from three to five.

   Also, while the number of operating rooms will remain the same at three, those rooms will be more spacious.

“We have three ORs right now averaging about 420-square feet. In the new facility, we’ll still have three operating rooms but the square footage will go up to 650-square-feet. That will really benefit our providers,” Patten said.

Patten concluded saying city officials have been “a great partner,” as it works to provide the infrastructure for the project. He also said officials are in the process of seeking a Community Development Block Grant for improvements, specifically mentioning Kootenai River Development Corp.’s Paul Rumelhart.

“We’re in the home stretch,” Patten said.