Cobleskill Regional Hospital’s plans to build a nursing home received a boost from Washington last week.
Announced by Congressman Paul Tonko, the hospital will get $350,000 under the 2010 Consolidated Appropriations legislations, which targets projects that will create jobs.
And although $350,000 is far from the millions CRH needs for the nursing home, hospital President and CEO Eric Stein was upbeat about the money.
“I see it as seed money and validation of the legitimacy of this project,” Mr. Stein said.
Schoharie County lost its only long-term care facility when Eden Park closed two years ago. CRH later bought Eden Park, but plans call for the home to be demolished.
Knowing that financing will be difficult, hospital officials this year have been looking at plans and alternatives for building a nursing home that would be connected to the hospital.
Early plans called for the nursing home to cost $30 million, but the figure now stands at $22 million, Mr. Stein said.
There are no architectural renditions of the proposed home, but it would have 100 beds and create 120 jobs.
CRH is also on the verge of applying to the state Health Department for a certificate of need, a necessary step in the process.
The state may take up to a year to approve the certificate, though it may issue a certificate contingent on financing before that, Mr. Stein said.
Meanwhile, the hospital will put the $350,000 in a development fund.
“It’s not enough to say ‘Go,’ but it’s an important piece,” Mr. Stein said.
Although the nursing home price has dropped, Mr. Stein still has the same funding plan: $6 million to $7 million from the state and federal governments, $2 million in fundraising and borrow the rest.
The government and fundraising moneys will provide equity.
“Even though we’re at a lower figure now, the more equity we have, the less we have to borrow,” Mr. Stein said. “The more equity we have, the better off we are.”
Possibly as important as the $350,000 itself is indication that the nursing home has support in Washington, he added.
“It shows the project is worthy of government financing,” Mr. Stein said. “And it’s important that Tonko supports it and that he supports Schoharie County.”
The Consolidated Appropriations legislation targets infrastructure, high-speed rail, community colleges, clean energy and other projects, in addition to health care.
“Our number one priority is creating jobs, and these appropriations bills will do just that,” Congressman Tonko said in announcing the legislation.