Ferrell Hospital Celebrates Opening of its Critical Modernization Project
Springfield, PA and Eldorado, IL: (December 17, 2020) – On October 30, 2020, the board and senior management of Ferrell Hospital, along with its medical staff and hospital personnel, as well community leaders participated in a ribbon-cutting ceremony to celebrate the completion of Phase I of its $34 million expansion and modernization project. Thereafter, on December 1, Ferrell Hospital began accepting patients into the new 55,000 sq. ft. addition to its existing 33,000 sq. ft. hospital. This addition includes a state-of-the-art emergency department, operating rooms, and endoscopy suite, improved radiology, lab and inpatient therapy services; 15 new private rooms and an infusion area. For the benefit of patients and guests, in Phase I, the cafeteria and lobbies were also updated. Phase II of the project, which will replace original portions of Ferrell Hospital dating back to 1928 is expected to be completed by 3rd quarter 2021.
“InnoVative Capital is proud to have served as financial advisor to Ferrell Hospital and had an opportunity to make a difference in the delivery of healthcare for the residents of Eldorado and Saline County. Great care was taken during the three-year planning and development of the project to make sure it met the community’s needs and the financial wherewithal of Ferrell Hospital,” said Alan P. Richman, founder and CEO of InnoVative Capital. “The tireless involvement of local, state and national offices of USDA and the leadership of Ferrell’s CEO and Board Members led to a truly transformational project,” noted Mr. Richman.
“The beautiful, modern facility completed in Phase I of the project allows us to provide the most-needed and best-possible emergency, surgical and hospital-based care to patients in Eldorado and throughout Southern Illinois,” Alisa Coleman, Ferrell CEO. “Now that the new construction is over, we will begin modernizing our original facility to complete the overall project,” said Alisa Coleman, CEO of Ferrell Hospital.
“Our ability to procure for Ferrell Hospital a 35-year U.S. Department of Agriculture (USDA) Direct Loan at an interest rate of 2.25% from the Community Facilities Program for the full funding requirement of $34.26 million, reduced Ferrell’s annual debt service payments greatly and afforded it the financial flexibility to increase the scope of the project, while remaining within its budgeted loan repayment schedule. The availability of construction loan financing through Evansville, Indiana-based Old National Bank facilitated a cost-effective construction process. Overall, we could not be more satisfied with the entire transaction,” stated Mr. Richman.
About InnoVative Capital
Founded in 2000, InnoVative Capital maintains a national hospital financing practice as an SEC-approved municipal advisor, USDA banker, FHA mortgage lender and hospital turnaround consultant; with a specialty focus serving rural hospitals and their communities through the capital financing of modern hospitals, as well as restructuring of underperforming assets and refinancing of debt obligations.
About Ferrell Hospital
Ferrell Hospital is a 25-bed critical access hospital located in the city of Eldorado in southeast Illinois, serving the 32,000 residents of greater Saline County and its surrounding areas. While committed to continue to operate as an independent nonprofit hospital, in December 2015, Ferrell Hospital entered into a partnership agreement with Deaconess Health System through Deaconess Illinois. This partnership included a commitment on the part of Deaconess to provide additional support to staff and services at Ferrell and work to assist in the development of Ferrell’s modernization project. Ferrell Hospital has a longstanding presence in Eldorado dating back to its founding as a physician’s office on the second floor of a downtown office building in 1925. In 1928, the hospital was moved to a new one-story facility with 12 beds at its current 1201 Pine Street location. Ferrell Hospital is a leading factor in the local economy as it employs more than 250 people and expects substantial volume growth in 2021 above last year’s totals of 1,007 admissions, 12,111 outpatient registrations and 6,043 ER visits.
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