HCH separates from Sisters/St. Francis
Holton Community Hospital is no longer under the management and “umbrella” of the Sisters of Charity of Leavenworth, according to Carrie Saia, HCH CEO.
This spring, HCH refinanced its revenue bonds that were used to construct the hospital, and the Sisters of Charity of Leavenworth, which operates St. Francis Hospital in Topeka, is no longer the guarantor of those bonds.
In addition, Saia, who has served as HCH’s CEO for three years as a St. Francis employee has now been hired outright by HCH.
“After working for the hospital for seven years, I’m finally now one of their employees,” said Saia, who served as the chief nursing officer prior to being named CEO. She became an official HCH employee on June 1.
In December 1996 it was announced that the Sisters of Charity of Leavenworth would guarantor up to $3.2 million in revenue bonds for the building of the new Holton hospital. Hospital organizers sought financial assistance from SCL because the organization was established and had a strong credit rating, Saia said.
The interest fee on the revenue bonds for the past 19 years had been 5.375 percent. In addition, the hospital has also paid a guarantor fee to SCL every year for backing those bonds, Saia said.
This spring, the city of Holton agreed to issue the hospital’s existing bonds. About $2,820,000 remains outstanding on those bonds, but the new interest rate has dropped to 2.84 percent, she said. The hospital refinanced those bonds through Sunflower Bank of Salina on March 4.
“The city of Holton has been very supportive,” Saia said. “Because of this type of bond, we needed the city to issue it for us, but the financial responsibility is solely the hospital’s.”
The lower interest rate, as well as the elimination of the guarantor fee, will free up some funding for the hospital.
“Now we can save that money and reinvest those savings,” she said, noting that when the hospital refinanced its debt, additional funds were issued that will be used to remodel the hospital and build a new health clinic in Hoyt.
As part of its partnership with Sisters of Charity of Leavenworth, the organization has stepped in to support and manage the hospital on several occasions.
The most recent was in 2007 when the hospital was financially strapped and Ron Marshall and Rebekah Wilson were appointed by St. Francis to manage the hospital. Saia was selected to replace Marshall in 2012.
Saia said there was another instance prior to 2007 when the hospital did not have a CEO and St. Francis stepped in to provide an interim administrator.
“In 2007, the hospital had a three-year agreement with St. Francis that has been renewed several times,” she said. “The board has been really appreciative to St. Francis for reaching out and helping at that time.”
Saia said she was the only St. Francis employee working at the hospital prior to the refinancing of the bonds. While SCL will no longer be managing the hospital, the two entities will continue to work together. There will be no disruption to any services.
“We do have separate contracts with the St. Francis lab and other services,” Saia said. “Both entities want to continue to collaborate. The only difference is that now the hospital will be managing itself.”
Saia said the fact that the hospital can manage itself is a testament to the support the hospital receives from local residents.
“We’re very fortunate to have the community’s support,” she said. “Our doctors are also excited about the change.”
Members of the hospital board include Dick Lake, Bobbie McGrath, Margaret Pagel, Alex Gilliland, Irvin Sanderson, Dan Brenner and Cathleen Reed.
Holton Community Hospital is a 501c3 not-for-profit corporation governed by a seven-member board of directors. Designated as a Critical Access Hospital, HCH, together with its provider group, Family Practice Associates, offers health care services to Holton, Hoyt, Wetmore and surrounding areas.
