County won’t rush DCHS credit request
IRON MOUNTAIN — A request for a line of credit for Dickinson County Healthcare System may linger to the end of the year, as county officials try to determine the potential risk to taxpayers and possible effect on a planned DCHS restructuring.
Venable LLP partner Bart Stupak asked the county board Thursday to back a $7 million line of credit for DCHS until a long-term loan can be secured through the U.S. Department of Agriculture’s Rural Development Agency.
Controller Brian Bousley told the board Monday he will meet with DCHS interim CEO Jeanne Goche to discuss the issue further. Also, the county is seeking its own legal advice and will await a draft proposal from Stephenson National Bank & Trust, which is expected to organize the temporary financing.
A special meeting may be called later this week or, more likely, further down the road because of the complexities, Bousley told The Daily News. Commissioners have made no firm commitment and there was no further discussion Monday.
Stupak had explained Thursday the money may be needed to support the hospital until it obtains about $30 million in long-term financing. Once a federal loan is secured, likely by summer, anything spent from the line of credit would be paid back with interest.
Goche, during Thursday’s discussion, described the line of credit as “a safety zone,” saying the goal is not to use it at all.
Washington D.C.-based Venable was hired by DCHS about two months ago to oversee a financial restructuring of the community hospital and offer a turnaround plan. Previously, DCHS was ready to explore Chapter 11 bankruptcy after two potential buyers pulled away.
Commissioner Joe Stevens, a liaison to the hospital board, said Monday he would encourage DCHS to release the status of a feasibility study recently done by Berkeley Research Group LLC , a global consulting firm headquartered in California. The first phase, which mainly involved financial research, has been completed, but the hospital is handling other components internally, he said.
Although DCHS is legally tied to the county, taxpayers currently carry no financial obligation should it fail. The proposed line of credit, however, potentially puts the county at risk if new borrowing goes unpaid.
Despite the need for a line of credit, Stupak told the county board Thursday he expects DCHS can “be in the black as a health care system” by the end of 2020.
In other action Monday, the county board:
— Heard Dale Alessandrini of Iron Mountain criticize the nine-member hospital board’s decision Thursday to reappoint three current trustees — David Holmes, Dale Ward Sr. and Dick Berlinski — saying they are among “the same people that did the damage” to DCHS. The appointments are subject to the county board’s advice and consent and are expected to be considered at a Dec. 26 meeting.
— Heard Pam Maule of Iron Mountain say she’s disappointed no hospital trustees with medical experience have been appointed. On Thursday, the DCHS board selected Kim Van Osdol, a bank executive with previous health system board experience, to fill a vacancy.
— In response to a question from Commissioner Ann Martin, heard Prosecuting Attorney Lisa Richards say Michigan’s new recreational marijuana law has had minimal impact on drug arrests made before it took effect, as most cases involved other charges as well. Richards said she has no plans to expunge past convictions.
— Received an annual report on Michigan State University-Extension programs from Paul Putnam, Extension district director. There were 487 county youth involved in 4-H and other youth enrichment programs, he said. Dickinson County has two Extension professionals, with 59 other staff members available to provide education on matters ranging from agriculture to veterans support services. Although the county has provided no financial support to the Extension for several years, Stevens told Putnam he hopes the issue can be revisited because of “the stability you have now.”
— Reappointed Katy Driscoll to the Dickinson County Library Board for a five-year term; Ed McBroom to the Upper Peninsula Fair Board for a two-year term; and Stevens to the Upper Peninsula Commission for Area Progress Board of Directors for a two-year term.
— Approved a request from the Dickinson County Bike Path Committee to use the Fumee Lake Natural Area for a cycling and running race Feb. 23.



