Need For A New Hospital
Detailed At Public Hearing

The low-interest loan is being secured through the U.S. Department of Agriculture (USDA) Direct Loan Program and is meant to assist organizations with solutions to improve the quality of life for rural communities.

 Debt service will be paid for by “successful management of the organization, both current and future,” CAH said in a statement. “Under the leadership of the current CEO Edred Benton, responsible management has delivered nine years of financial success, with 2024 marking a decade of recruiting/developing the current team.”

 Benton added at the hearing, “I am proud of what the hospital team has accomplished. The operation of the facility has doubled over the past decade. We have spent 10 years demonstrating financial stewardship and stability, with due diligence on a replacement facility starting in 2018. The clinical success and growth illustrate that there is merit in recommending that we invest in a new facility.”

 CAH is one of Cleveland’s largest employers with more than 200 staff members.

 Hospital records show that since 2015, there has been a 130 percent volume increase of annual primary care visits, including 70-80 patients seen per day and a 43 percent increase in emergency department visits with an additional 20 percent forecast for 2024. In addition, Lake Area Medical Associates, a service of CAH, averages a monthly patient volume of 1,600.

 The new hospital will triple the footprint of the current one, with plans showing a 62,000-square foot building. Benton said in the June 11 hearing that studies showed the present building simply could not be renovated because the cost to do so would cost as much or more than starting over. Hallways are not accessible, bathrooms are not large enough for wheelchairs, emergency rooms and lab are too small, and overall, the entire building needs modernization as it is not up to code with plumbing and electrical. In other words, what is there is not sufficient; plus there is no room for growth.

 “The bottom line is, we are a few decades behind in terms of physical facility,” Benton said.

 Construction is slated to begin sometime next year, with Manhattan Construction winning the bid for the project.

 Employees from the hospital, as well as board members on the CAH Trust Authority, were in attendance at the public meeting. In a packed council chambers were representatives from both banks, Cleveland Public Schools, Walmart, Indian Electric Cooperative and several other business owners and citizens. Benton addressed those in the gallery, explaining a new facility was needed due to “outgrowing” the current one. A good problem to have, Benton said, because it is an indicator of how far CAH has come from its humble beginnings in 1963.

 The growth is a testament to the fact that locals trust CAH to provide care for themselves and their loved ones, and they see it as a comparable option for non-emergent services to those in larger cities, he said.

 In an emotional moment, Benton asked the crowd to look back at where the hospital was 60 years ago when the current building was constructed. He said those who secured a rural hospital at the time were visionaries, and he thinks they’d be proud of where modern times have taken CAH and its employees.

 Stressing there would be no additional tax to Cleveland citizens, Benton mentioned the 1 percent city tax dating back to the 1970s that supplements CAH operations. One-third of the sales tax collected secures a contract with Mercy Ambulance. However, Benton said, while those taxes are necessary funds, they only account for about 3 percent of the hospital’s overall budget. Benton said the rest of the operating budget is generated by the work performed by the professionals at the hospital and the healthcare provided to the community and those in the surrounding area.

 “The work that the team does raises 97% of the expenses to cover running our facility,” Benton said. “The loan is 80% USDA direct loan and about 15% USDA guaranteed loan. No new taxes.”

 On a related note, Benton stressed the financial position of the hospital is healthy, with a 120 percent growth in operating revenue since he was hired in 2015.

 No one in attendance voiced opposition to the project, and it appeared to be a room full of supporters. Several did ask clarifying questions about the terms of the loan and specifics on new services that could be offered with a larger facility. The terms of the USDA loan is 30 years, Benton said.

 Benton explained plans for more elective procedures to be offered with a larger building, and the agreement with Oklahoma State University Medicine will allow for more opportunities to provide top-tier healthcare for Cleveland-area residents. The OSU Emergency Medicine team, consisting of 40+ Board Certified Emergency Medicine physicians, now are staffing the Cleveland Area Hospital Emergency Department. Specifically, an OSU Emergency Medicine physician is now onsite, 24 hours a day, leading the team’s delivery of emergency care.

 A property owner who neighbors hospital land asked about where the new building would be located, with Benton saying while it will be behind the current structure, those plans still are in the works.

 The meeting was facilitated by Cleveland City Manager Mike Vaughan, mayor Chris Gabriel and Chief of Police Clint Stout. Benton spoke for about 20 minutes before Vaughan asked for public comments.

 As the meeting adjourned, several people in attendance walked up to Benton to thank him for his years of work in securing a new facility, and the overall mood in the room appeared generally celebratory.