The Metro Council overwhelmingly approved a loan extension for Nashville General Hospital last night, but not without a few stern words for hospital officials.
Several council members reiterated their concern about reauthorizing the loan amount for the third time and increasing the loan’s amount by $11.5 million. They added an amendment requiring notification when General Hospital accesses their new line of credit, as well as requiring financial reports to be filed with the council every other month.
Metro Hospital Authority CEO Reginald Coopwood says the hospital is already improving its financial status.
“We have changed significantly the environment, both the physical environment as well as how we provide that care. We are seeing the growth we expected to grow. We never promised anybody that this was going to be a one or two year turnaround.”
The hospital has reduced its net deficit from about $21 million in 2005 to $7 million projected for this fiscal year.
Coopwood says the hospital has no operating reserves to cover contingencies leading to the need for the $11.5 million line of credit. Several unexpected events impacting General’s bottom line include state money that hasn’t yet appeared and a contract dispute with the company which pays the hospital for services provided to state prisoners.
Coopwood says he’ll be meeting with members of the Davidson County delegation to the state legislature in the coming weeks to talk about the state prison contract.
The resolution passed 34 to 3, with council members Jim Gotto, Michael Craddock and Charlie Tygard voting against.
In other council business, the Dickerson Road redevelopment plan also passed on first reading. A public hearing on that plan will be held March 18th.
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