Quincy seeks to loan struggling hospital $1.5 million
Quincy residents will vote on whether to loan their indebted hospital $2.2 million on Nov.4. Council members voted to look into loaning the Quincy Valley Medical Center an additional $1.5 million at their most recent meeting.
QUINCY - The Quincy City Council voted unanimously this week to look into loaning its struggling hospital $1.5 million.
With city residents voting next month on a $2.2 million levy to help the hospital, Mayor Jim Hemberry said even if voters reject that levy, taxpayers might still be "on the hook" for Quincy Valley Medical Center.
The council vote did not guarantee the $1.5 million loan, it only allowed city officials to discuss potential terms.
Hemberry told council members before the vote city officials could move money out of an investment account generating half a percent interest and into a loan for the hospital earning a higher interest rate.
If the hospital defaulted on the loan, taxpayers would still be obligated to pay the city back, Hemberry said.
"If the hospital closes, the taxpayers would still be on the hook," Hemberry told council members.
Hemberry said he "seriously doubted" city officials would agree to terms of a loan and ask the council to approve it before the Nov. 4 election.
Quincy Hospital District No. 2, which funds Quincy Valley Medical Center, owes Grant County about $4 million from unpaid hospital bills and lost revenue after a switch to an electronic payment system.
Earlier this year, Grant County Treasurer Darryl Pheasant complained in an e-mail to Quincy Valley Medical Center's CEO Mehdi Merred that "he was concerned of the lack of desire to pay down the debt."
Grant County Commissioner Richard Stevens said he and other commissioners were also getting impatient about the growing debt.
Hemberry said if voters approve $2.2 million the levy and the council approves the $1.5 million loan, that revenue could pay back most of the county's registered warrants, and appease Pheasant and county commissioners.