Glenn Med is looking to expand

Glenn Medical Center wants to build a new hospital next door to its existing facility, but it needs title to the land in order to finance it.

Chief Administrative Officer Bill Casey asked Glenn County supervisors Tuesday to allow his nonprofit organization to purchase the property with money placed in a hospital account administered by the county.

No formal action was taken this week because the issue was on the agenda for a report only, and Casey said he did not expect a decision now.

Instead, he wanted to present the hospital's plans for board consideration while reviewing where it is at this point, Casey said.

The hospital was built in 1951 and needs to be replaced, Casey said. After studying the idea, consultants told hospital administrators it would be best to stay at the current location since it has infrastructure like water, sewer and power in place.

Casey added the hospital has a bonding capacity of about $14 million and qualifies for an FHA loan provided it owns its property.

Glenn Medical Center was formed in 2002 after Enloe Hospital pulled out of the facility, he said. Enloe leased the former county hospital in 1995.

Subsequently, Enloe left a $1 million fund to the county to cover operating losses, said Glenn County CAO David Shoemaker, and the county has used some of that money on hospital expenses.

However, Casey said he believes the money belongs to the hospital and the remaining $700,000 should go toward the land purchase.

County officials dispute that idea and said the money is the county's, but that argument was not settled Tuesday.

Casey said since 2007, Glenn Medical Center has posted year-end profits of $135,000 to $240,000 and its payroll and charity care have grown significantly.

If the new hospital is built, the center would move its health clinics into the old buildings, he said.

The board also may consider providing $14,000 in architectural fees to the center at a future meeting since the hospital commissioned a Chico firm to draw the conceptual plans.

"I commend you for your long-range plans," Board Chairman Mike Murray said.

Supervisor Steve Soeth added the hospital has done a good job of shedding the stigma it had in the past while Supervisor John Viegas said he has sent people from Orland there.

Former Supervisor Keith Hanson now chairs the Glenn Medical Foundation and said there is "nothing more important than your health, and we need something close by to help people.''

The property issue likely will be scheduled for more discussion in the future, county officials said.