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DCHS seeking $16.9M federal loan

Dickinson County Memorial Hospital (Theresa Proudfit/Daily News photo)

IRON MOUNTAIN — Federal officials are reviewing a $16.9 million loan application from Dickinson County Healthcare System, down about $8 million from the first request a year ago.

The lower amount is possible thanks to COVID-19 assistance received through the federal CARES Act, as well as improved financial performance, said Margaret Minerick, who chairs the DCHS Board of Trustees.

Minerick gave an update Monday to the Dickinson County Board, saying “things are going well at the hospital … knock on wood,” adding the hospital had a profit of $500,000 for the months of June and July while moving in 2020 “from one challenge to the next.”

CEO Chuck Nelson said there is an “ongoing dialog” with U.S. Department of Agriculture Rural Development officials over the revised loan request. The initial application stalled as officials said they wanted evidence of financial stability through this year.

Federal funds are needed to refinance debt and acquire new equipment, but some capital needs are already being addressed. For one, roughly $1 million will be spent to improve the emergency department.

Nelson said “public concerns” about the emergency room are being taken seriously and, with 131 days cash on hand, the hospital is in a good position to move forward.

“We’re replacing the curtains with walls,” Minerick told the board.

Nelson came on board at DCHS last fall, about a year after the hospital had explored possible bankruptcy. As recently as October, it had just 50 days of cash on hand.

No specific information was shared Monday on the amount of CARES assistance received. Minerick noted DCHS has been granted Medicare payments in advance but hopes to repay it before interest is charged.

As adopted Thursday, the hospital has “an aggressive plan” to have its pension obligations fully funded in 10 years rather than 20, she said.

Nelson encouraged the public to use the facility for elective procedures, as DCHS is “acutely aware” of precautions needed against the coronavirus and is “doing all the right things.” Nationwide, he said, there is a problem with health conditions needlessly going undiagnosed — including cancer.

County Board Chairman Henry Wender complimented the hospital on its numerous safety awards and asked about success in recruiting physicians.

Nelson said a third pediatrician is signed and a urology clinic will open in October. A regional heart care clinic led by Dr. Clayton Shaker will open in about a month and a new partnership with U.P. Rehab Services is an example of joining forces and doing “the right thing for the community,” he said.

“There is plenty of population to support a great hospital,” he said. “We’re talking about the future. The rear-view mirror doesn’t exist anymore.”

In other action, the county board:

— Agreed to send a letter to Gov. Gretchen Whitmer asking her to reconsider the reappointment of Victoria Enyart to the Michigan Tax Tribunal. Enyart has established “a troubling pattern of devaluing the property of big box stores,” according to state Sen. Ed McBroom, R-Waucedah Township. The appointment is subject to the advice and consent of the senate, and McBroom is requesting a hearing.

— Approved payment of $35,745 to Valley Mechanical of Menominee to repair plumbing lines at the Crystal Lake senior center. The county plans to transfer ownership of the building to the center’s site council, a process that may be completed by October, Controller Brian Bousley said.

— Heard from Sheriff Scott Rutter that complaints are on the rise about off-road vehicle traffic, particularly on Pine Mountain Road and County Road 607. While ORVs are permitted, they must operate as far to the right as possible on the shoulder of a county road, unlike cities that allow such traffic, he said. Also, the speed limit is 25 mph, he said.

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