Saint Anne’s Hospital of Fall River will break ground on a breast-care center and begin expanding its existing facilities in July. New construction and renovations are expected to cost about $14.5 million, according to the hospital.
Michael W. Metzler, the hospital’s president, said the upcoming changes are in response to an increased demand for outpatient care, and advances in cancer treatments.
In the past year alone, “our outpatient cancer care has experienced steady growth and we expect this to continue, primarily because of screening and early detection methods have improved,” Metzler said. The hospital in 1998 added a radioactive seed implant program for prostate cancer patients and extended its community outreach program for mammography and other screenings with a five-year grant from the Massachusetts Department of Public Health. It also renovated its inpatient oncology unit, including the addition of a lead-lined room for special gynecological procedures.
This year’s plans call for a three-story, 24,000 square-foot wing to house the breast-care center, the relocation and expansion of medical/surgical inpatient and intensive care units, and a new hospital entrance. Smaller projects include a 6,000-foot addition to the emergency department and a 7,000-square-foot addition to the Hudner Oncology Center; a tripling of the surgical day care unit; and renovations to the radiology department.
The hospital also plans to break ground in early 2000 on a 200-car parking garage on the southwest corner of its campus. All projects are scheduled to be completed by early 2001.
The new and expanded facilities will be paid for with proceeds from a $5-million capital campaign to be launched in April, and a combination of loans, operating revenues and cash reserves, said Wendy Bauer, a hospital spokesperson. Bauer said she does not have specific amounts at this time.
Metzler called the timing for all of the above plans “financially right.”
The hospital announced earlier this month that it will receive an unknown portion of the Jan. 12 sale of approximately $200 million in bonds through the Massachusetts Health and Educational Facilities Authority on behalf of St. Anne’s parent organization, Caritas Christi. The hospital will spend some of that money on long-term debt service payments, saving about $750,000 in annual interest payments. Part will go toward improvements to the facility, Bauer said.
“The combination of demonstrated need, our commitment to serve and a favorable financial climate have contributed to our decision to move ahead with plans,” Metzler said.
In 1991, Saint Anne’s suffered a $6.5 million loss in revenue. The hospital in 1994 joined Caritas Christi, the health care system of the Catholic Archdiocese of Boston. Every year since then, the hospital has experienced an increase in revenue and its bond status has been upgraded from junk to investment. Last year, it had $64.2 million in revenues – a 20 percent increase over the previous year – and an operating surplus of $4.1 million. The hospital did not yet have 1998 audited figures.
“We are pleased that the financial world, especially the bond market, has recognized the strength and vision of our hospital and our parent corporation,” Metzler said. “The sale of these bonds, the first time by Caritas Christi as a system, will enable us and our sister institutions to realize important savings and better serve our patients.”
