Saturday, Oct. 11, 2008

Public hearing set on Kennewick hospital plan

By Laura Kate Zaichkin, Herald staff writer

KENNEWICK -- A public hearing about Kennewick General Hospital's proposed $95 million hospital in the Southridge area has been scheduled for Nov. 5, state officials said.

A letter signed by 14 people who live in the hospital district was sent last week to the state regulatory board that oversees health facilities expansions or service increases.

"It will be of interest to get an update of where the hospital is going," said Ray Robinson of Richland, who coordinated the letter requesting the hearing. "It's simply to get the information we all need."

Robinson helped lead an effort in 2007 to oppose a levy to build a $132 million, 101-bed hospital at Southridge.

The hospital proposed to finance construction in revenue bonds that would be paid with a 37-year levy that would add 42 cents per $1,000 of property value to the tax bills of property owners living within the public hospital district.

But 66 percent of district voters rejected the levy, prompting the hospital board to regroup and come back this spring with a scaled-down 74-bed version of the hospital that would leave some services at the existing Auburn Street campus.

The letter to the state's Certificate of Need program says the request for a public hearing "should not be construed as an endorsement or as an objection" to a new hospital.

"We weren't saying that we're for or against," Robinson said. "I think that a lot of people throughout the hospital district are very much in favor of upgrades or enhancements."

The hospital district board decided in the spring to move forward with the assumption that taxpayers won't help foot the bill.

The hospital plans to pay for the project -- which will probably total $113 million with financing costs and capitalized interest -- with a combination of federal funding, selling assets, cash reserves and a fundraising campaign.

The hospital district likely could get nearly $86 million from federally backed bonds, said Glen Marshall, KGH chief executive officer. KGH administrators also will try to find state and federal grants to help pay for the expansion.

Services that would remain at existing facilities include a family birthing center and nursery at the Auburn Street hospital and gastrointestinal endoscopy services at the Kennewick medical mall.

"We've put all the information out that we have so far," said Theresa Long, a hospital spokeswoman. "We will be there and we will be ready to answer any of their questions."

The state expects to make a decision on the project by Dec. 26.

If approved, the hospital could break ground on the new hospital next fall in a best-case scenario.