The Three Rivers Health Authority Board has agreed to utilize the services of a consulting firm to assist with financing and refinancing issues.

In action during the board’s October meeting last week (October 29th), the board authorized engaging Lancaster Pollard as the hospital’s agent to negotiate a favorable position with Chase.

During a post-meeting interview, Interim CEO Bill Russell explained that Lancaster Pollard is a consulting company that works with health care organizations on financing and refinancing issues.  He said, “Three Rivers Health has one final note placed with Chase that we need to get refinanced and we are going to be working with them to, at a minimum, redirect that loan, working with Lancaster, working with other financing institutions.”  And, he added, “We are convinced they are going to be an important resource in helping us be cost effective and expedient in making this final debt transition.”

The debt with Chase is about $3.6 million.

Russell said, “The second phase of our discussion with the board, which will happen next month, will be – are we looking at $3.6 million, or would we look at a larger sum to allow us to address some pent-up capital needs of the organization as well?  Based on the cost of money and the opportunity to do financing, it makes a certain amount of sense to explore other opportunities to go for a larger amount than the current debt retirement that we need to attend to.”

Regarding the relationship with Lancaster Pollard, Russell said, “I think it bodes very well for this organization.  I think it will respond to a longstanding issue and concern and struggle that the hospital has been dealing with and give us a good platform to build for the future.  I’m excited about it.”

The cost for the services to be rendered by Lancaster Pollard is $75,000 with $20,000 at contract signing and the balance after the task is complete.

To hear the interview with Bill Russell – conducted by Bruce Snook of the River Country Journal – click here (1:46).