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DCH to pay two major creditors

(Theresa Proudfit/Daily News photo)

IRON MOUNTAIN — Dickinson County Healthcare System will pay off a major creditor and settle a debt with Bellin Health Systems as it awaits a closing date for a $16.9 million federal loan approved last month.

A payment of nearly $10 million due to Fifth Third Bank since March 2020 will be settled, along with $1.8 million borrowed in early 2018 from Green Bay, Wis.-based Bellin Health Systems.

Payments were approved during the hospital board’s Zoom meeting Thursday, although figures weren’t stated.

Over the past year, hospital officials have said that creditors remained satisfied with progress in settling outstanding debts. A pandemic-related extension of the Fifth Third Bank balloon payment was first noted more than a year ago.

Before a financial rebound in 2019, DCHS incurred roughly $21 million in losses from 2016 through 2018. Bellin had provided a line of credit before withdrawing an offer to acquire the hospital in May 2018.

The hospital board agreed Thursday to pay the Fifth Third Bank and Bellin debts with available cash, anticipating the proceeds of a U.S. Department of Agriculture Rural Development loan soon will be in hand. Federal officials have given consent to the action, DCH CEO Chuck Nelson said.

The 25-year Rural Development borrowing has a 2.18% interest rate. It also provides for a new linear accelerator, new CT scanner, new magnetic resonance imaging and information technology system upgrades.

The audio for some participants was muddled during Thursday’s session. It will be remedied for the next meeting, said Joe Rizzo, director of public relations and business development.

The board heard a COVID-19 update from Sue Hadley, DCH vice president for clinical services and population health. Hadley said there has been a virus surge across the state linked to social gatherings.

“The U.P. is fortunate that our positive numbers have leveled off this week,” she said in written statement provided because of the audio problems.

The U.P. had 68 new cases Wednesday, part of more than 5,500 statewide.

“The Dickinson County population age 60 and above are 85% vaccinated, and we see less than a 1% positivity rate for that age group,” Hadley said.

The Dickinson-Iron District Health Department is now targeting ages 15 to 17 for vaccinations. It offered a Pfizer clinic Thursday that was open to the general public.

Dickinson County has positively identified the South African and UK variants of COVID-19, Hadley added. “The vaccine has proven to help limit the adverse effects and symptoms of COVID-19 and the mutating variants,” she said.

The Michigan Department of Health and Human Services website as of Monday reported Dickinson County Memorial Hospital with three COVID-19 patients, none in intensive care. The same dashboard listed UP Health System-Marquette with 10 COVID-19 patients, including seven in intensive care.

The hospital board, in other action:

— Heard an update from Brian Donahue, chief finance officer, who reported 88 days of cash on hand, before the board’s approval of the debt payments. DCHS was $790,000 ahead of budget in March after weaker performances in both January and February, he said. No year-to-date bottom line was stated.

— Congratulated and praised board member Sally Blom, who is stepping aside after decades of service.

— Reported no lasting disruptions after a hospital bomb threat Monday night. The hospital briefly went into lockdown for a sweep of the building, but had no patient health care complications due to the situation. The incident was handled well, Nelson said. It remains under investigation.

— Learned the Dickinson Hospital Foundation’s Scramble for the Health of It golf outing will be Sept. 9 at Pine Grove Country Club.

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