$1.5M loan approved from City to Coffeyville Regional Medical Center

COFFEYVILLE, Kan. (KOAM) - In response to ongoing financial challenges, Coffeyville Regional Medical Center (CRMC) has received approval for a $1.5 million loan from the City of Coffeyville to support critical infrastructure improvements and staffing enhancements.

City commissioners voted on Wednesday to approve the loan, which will be funded through the city's economic development fund.

City Manager Ben Brubaker emphasized the vital role CRMC plays in providing critical-care medical services to Coffeyville, as well as surrounding areas in southeast Kansas and northeast Oklahoma. However, like many rural hospitals, CRMC face substantial financial challenges, including rising operational costs, infrastructure upgrades, and the need for effective staffing.

Recent changes have designated CRMC as a Critical Access hospital, transitioning it to a cost-based reimbursement model. This shift is expected to lead to a substantial increase in net revenues once fully implemented, although it may take several months for the financial benefits to materialize.

"Investing in CRMC will yield significant economic benefits for our community," Brubaker stated, noting that expanded medical services could result in more job creation and improved access to healthcare.

The loan will be repaid over six years, with the first payment deferred until October 5, 2025. The agreement includes a fixed interest rate of 4.0 percent per annum, resulting in total interest payments of approximately $157,486.98 over the term.

CRMC currently does not receive direct city funding for operational costs; however, it collects a half cent sales tax through the city to support emergency care services, including its ambulance service and emergency room operations. The new loan will not affect this ongoing sales tax support.

The loan was approved by commissioners Alec Hendryx, Don Edwards, Deborah Maples, and Jim Falkner, while Commissioner Ann Marie Vannoster was absent during the discussion.

COPYRIGHT 2024 BY KOAM NEWS NOW. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED.