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Home My WebLink AboutZ-03127-B Dev. Planr Statement of Dr. Raymond B. Hoxeng L:A Director of Development and Public Relations of ' x The Arkansas.Children s Hospital Before the i Labor -HEW Subcommittee of the Senate Committee on Appropriations Delivered to Sub -Committee LI April 8, 1977 .1 L _� o r Statement of Dr. Raymond B. Hoxeng L:A Director of Development and Public Relations of ' x The Arkansas.Children s Hospital Before the i Labor -HEW Subcommittee of the Senate Committee on Appropriations Delivered to Sub -Committee LI April 8, 1977 .1 L _� ' + Mr. Chairman, my remarks today concern the Arkansas Children's hospital, t -,hick is of vital importance in providing health care to children of Arkansas, and which is presently experiencing a crisis which threatens the quality of children's health services in Arkansas. It is my hope that a solution. ' may be initiated for the problems which endanger this institution, and, with the assistance of all concerned, enable it to continue its good works. 'Sn The Arkansas Children's Hospital is located in Little Rock, Arkansas. For the last six years it has experienced growth in both inpatient admissions and outpatients visits unprecedented among pediatric health care institutions in the United States. During this period inpatient admissions have increased by 250 percent and outpatient visits by 900 percent and census statistics indicate this growth rate will continue into the future. This dramatic growth of patient services is further illustrated by the following statistics: 1971 1976 Inpatient admissions 1,540 3,752 Outpatient visits- 6,885 51,930 r The Hospital's present 93 -bed capacity lacks about 50 percent of the space required to handle the presenL patient load. This tremendous increase in patient services has severely taxed the hospital's present facilities. Its administrators have accordingly initiated efforts to determine what the hospital must do to accommodate the present influx of patients and also provide for future growth. A master plan is being t developed to predict c�:pajjsion needs thruul;h the year 2000, with initial j studies in various st.iges of compleLion. a These initial studies have revealed the need for an immediate expansion of the Hospital's capacity. The Hospital has therefore commissioned an architectural firm to develop detailed plans and cost projections. Preliminary' , plans have been completed, and land purchased to accommodate the expansion. The first phase of this e::pansion will expand capacity from 93 to 160 beds, and from 72,000 to 212,000 square feet of gross area. New facilities will include a modern Level III nursery, to be the first in Arkansas, which can be used as a referral nursery for all other hospitals in the State. Surgical suites will be expanded to accommodate modern surgical and diagnostic techniques. Outpatient facilities, presently containing appro.ximate:Ly 30 �Y ; i clinics which are severely overtaxed, will also be expanded. Preliminary cost estimates indicate that the first phase of the expansion program will require $10,000,000 to $15,000,000, including renovation of the present facility which will be incorporated as an integral part of the e�.panded Hospital. The time schedule for finalizing all approvals and com- pl.eting construction indicates that this first phase expansion could be ready for occupancy by 1.981. The Hospital, however, is currently inundated by more patients than it can safely handle, notwithstanding its expansion plans. It has'been forced f currently expandinpatient .to make immediate efforts to meet the pressures og loads• For example, a building has been renovated on the land purchased by the hospital to accommodate 8,000 square feet of new outpatient clinic space. The $750,000 coc;t of CIZis renovated f. Icil.ity and adjacent property was underwritten by the hospital. In addition, a four -bed expansion of intensive care facilities Baas completed in 11ai:c1l, 1977. 11 -3- . e efforts, however, continue to fa]1 short. To accommodate the These _ continual increase in patient load until tyle first phase of expansion is ba completed in.19gl, several interim improvements must be made to .avoid serious deficiencies in patient care. Improvements in facilities must be made in such areas as respiratory therapy, radiology, and cardiology. The intensive d the medical care nursery must be expanded and other changes made to expan for additional medical staff. This modification library and provide offices of the existing facility, purchase of new equipment, and acquisition of least $1,000,000. Such temporary space for expanded services will cost at improvements are absolutely essential for an orderly transition to -the expanded facilities as they are constructed, as the current demands on the Hospital's facilities threaten to swamp existing programs. The Hospital has initiated construction of those interim improvements which it has been able to finance by borrowing. it can only do so, however, with improvements wlli.ch create additional revenue to offset amortization costs. Unfortunately, fel" of the inter.irl improvements which must be made can be flnallccd in this manner. The hospital is doing everything in its power to obtain funds to firlarLce the rest of these improvements Which it must have. Chairman, the position occupied by the Children's hospital in Arkansas ion in providing children's health is unique. Indeed, its dominant posit services for a majority of Arkansans isapproached by the patient reach of only a few lu>spitals in the entire country. It has been the pioneer agency in provi_din^ hcaitll :,c�rvir,c,; to �\rl:;uls;l:; cllilclrcn S.lnCe. 1.q:1.7.. Over the years, despite a continuous p]_a,,;ue of financial problems, the hospital has steadily increaselthe quality, type, and amount of services it provides. At the present, it provides the majority of medical care for critically ill children from the entire State of Arkansas. -4 - It. has developed clone relaLionships with many Arkansas medical education institutes, and through such relationships, has become a center for pediatric education and research. The Ilospital has further utilized the expertise and personnel of these institutions over the past few years to expand its services into new areas, such as rheumatolo-y, pulmonology, and pediatric hematology. The Hospital's unique status is further enhanced by the characteristics of the patients it -serves. Consistent with the Hospital's philosophy of turning away no child needing medical care, regardless of financial status, religious preference or ethnic background, the Hospital's patients represent all social and economic levels of the residents of Arkansas. Its patients are the children of the State of Arkansas from their birth until twenty-one years. In recent years every one of the 75 counties of Arkansas have sent patients to the hospital. Historically, the Ilospital has maintained broad support from all sections of Arkansas. The Arkansas State Legislature has provided annual support, starting with -$3,000 in 1.929, to help offset the cost of non -reimbursed care. This support has grown steadily as needs have increased. For example, during the last six years, the cost of non -reimbursed care increased from $162,000 to $760,000, and state support increased from $37,000 to $350,000 per year for the 1977-79 biennium. In addition, the Arkansas State.Legislature recently approved a one-time capital construction grant for urgently needed renovation of the Ilospi.tal's radiology department. Arkansas` County Quorum Cocir.Cs have also recognized the statewide scope of the services provided by the Arkansas Children's Ilospital. Approximately 50 of the 75 Arkansas counties have been making annual appropriations to the Hospital for almost four decades. . -5- In addition, the llospital draws upon a broad base of individual support Arkansas. A yearly mail solicitation yields contributions from across 45,000 individuals and corporations. The llospital has also been the recipient i. of endowments from individual Arkansans. f` As the Hospital anticipates the financing of a major expansion, all-� possible sources of support are being investigated. In addition to the sources 1 -have mentioned above, the Hospital is coordinating its efforts with the tq_� Central Arkansas Health Systems Agency. An application for a Certificate of Need for the proposed expansion is being prepared following a pre -application with 11SA officials: This application should be processed review meeting through the Arkansas HSA Facility Revie-,%T Committee and the Arkansas HSA Board by -June, 1977. The hospital's administration further intends to pursue all avenues of inquiry open to it under HSA regulations. In addition, the llospital hopes to raise at least 50% of the $10,000,000 to $15,000,000 expans.Lon cost from state, local, and private donors. A $3,000,000 to $4,000,000 public fund-raising campaign is intended, and the llospital expects to derive at least matching funds from state and local governments. Mr. Chairml-in, it is my hope the infoi-nation I have provided illustrates the unfortunate circumstances experienced by the Arkansas Children's Hospital. The demand for the hospital's services has grown at a faster ratio in the last six years than ziiiy other similar 1[lSt-Ltutioil in the United States. The {j llospital nnist expand yr b� ovc rwllelme.cl. Tts adnini:.tr�itors helve recognized `s this, and are expandin„ as fast as they can. ,} Mr. Chairman, the llospital can develop expansion plans to carry it through the long run. It is in the process of doing so. It is the immediate future -6 - of the hospital, however, which poses the greatest threat. These astounding growth rates in demand for patient services which could not be predicted have strained the hospital's facilities to the utmost., As I have stated, the Hospital has done what it can by borrowing to finance immediate -improve- ments. It is, however, at the limits of its borrowing power. Unless it can obtain funds from other sources, the quality of the health care which it provides children of Arkansas will be imperiled in the immediate future. Children's Hospital 804 WOLFE STREET I LITTLE ROCK, ARKANSAS 72201 PHONE 376-4621 April 18, 1977 Mr. William H. Kennedy, III 1235 Dirksen Building Senate Appropriation Committee Washington, D.C. 20510 Dear Mr. Kennedy: Dedicated to the Care of Sick and Crippled Children LELAND R. MCGINNESS, ADMINISTRATOR GORDON GREEN, M.D., MEDICAL DIRECTOR In Re: Immediate Short -Range Needs As noted in our Information Statement (March 25, 1977), Arkansas Children's Hospital's most urgent need is for space to accommodate the ever increasing patient load, new medical staff, and to expand parking. To resolve this situation the Hospital proposes to construct temporary housing for non -patient functions, freeing space in the current facility for expansion of patient services, and to add one floor of patient rooms to the South wing of the Hospital. This will. help ameliorate the present critical condition and provide a smoother transition into an expanded facility. Specifically it is proposed that: l.. Six 24 ft. by 72 ft. steel buildings be constructed ar,,jacent to the Hospital, providing10,368 GSF of additional space for non -patient functions; 2, A third floor be added to provide 4,507 GSF for an additional nursing unit of 14 beds; and 3. 10,952 GSF in the Hospital be renovated to expand ambulatory facilities, the Intermediate -Care Nursery and the Radiology Department, and to initiate a short- term surgery unit. Details of the proposed interim changes are shown on the attached sheets. As noted, the immediate needs total $1,811,238 including BOARD OF TRUSTEES ROBERT CRESS. PRESIDENT • GUY AMSLER JR 'VICE PRES-DENT • JAMES T. DYKE. SECRETARY • JAMES PENICK. JR,. TREASURER JOSEPH D CALHOUN M.D.. CHIEF OF STAFF • •N L JOHN M BAE JR. M A JACKSON M O MRS LUKE QUINN EMERITUS: STANLEY M BAUMAN JR. CCOPEP JACONAY BART ROACH W C BENNETT LOUIS A. LANFORD BROOKS L. ROSEN BRUCE R ANDERSON ROBERT T DOUGLASS JACK P, LYNN EUGENE B SMITH. JR. JOHN H, BALE JAMES K FOSTER V: ILLIAM R MEEKS MRS. W B. W'ARMOUTH A L BARBER HERSCHEL H FRIDAY, JR MRS, J. M. MOORE FRANK D. WHITE WORTH JAMES 0 BARRETT HAMILTON. JR HENRY L NIC HOLS CHARLES WILLIS W JOHNSON R WHIT,FSIDE III JACK 7 LYNN Arkansas Children's Hospital Mr. William Kennedy Page 2 $220,000, which has been pledged by the Arkansas State Legis- lature for Radiology equipment. If $1,000,000 can be obtained from Federal sources, the Hospital expects to be able to pro- vide the balance of $591,278 from operations and other sources. Completion of a Special -Procedure Unit in Radiology for heart catheterization procedures will be the target of a special fund-raising effort. Sincerely, :Raymo/id B. Hoxeng, D rector Development and Public Relations RBH/cab cc: Leland R. McGinness, Administrator Robert Cress, President, Board of Directors Enclosures Arkansas CHildren's Hospital STgAARY OF IM=IATE SHORT-RANGE NEEDS A. Temporary Building Units, each 24' x 72' 1. 6 Doctor's offices, 3 sec's, files, reception room 2. 4 Doctor's offices, 2 sec's, reception, Research Laboratory 3. 7 ibrary Medical Director & sec.; Dir, of Nursing & sec. 4. Conference Room CCS 5. On -Call resident Housing - 4 male, 4 female, Dental Clinic 6. Administrative Support Business Office :administrative Offices & conference room SUB -TOTALS - Temporary Building Units B. Renovations of existing space after vacating 1. Ambulatory Care Area Renovate Medical Records,.Admin. Service Area - Add 5160 sq. ft. @ $30 to add clinics, conference room and parent waiting room. 2. Short-term Surgery Renovate on-call area and Burn Center office 740 sq. ft. @ $40 3. Expansion of Intermediate Care Nursery 4. Addition of clinic space 960 sq. ft. @ $30 5. Relocation of Physical Therapy, Occupational Therapy and Respiratory Therapy 6. Renovation of area for expansion of Radiology and Pharmacy *Fluoroscopy (replacement) $250,000 Portable Unit (replacement) 45,000 Standard Radiographic Unit 125,000 20,000 (Arkansas Legislature has pledged $220,000 toward Radiology Equipmnt) SUB -TOTALS - Renovations equipment construction and sq. ft. cost furnishings 1728 $ 35,000 $ 5,000 1728 42,560 45,000 1728 35,000 5,000 1728 35,000 12,000 1728 58,720 15,000 1728 35,000 3,060 10,358 $2413280 $85,000 5160 1150,000 $10,000 740 30,000 15,000 2100 83,000 15,000 960 30,000 5,000 1032 10,300 5,000 960 30,000 420,000* 10,952 $333,300 $470,000 SnLLrrr.� of-,ri,-l;ange needs C. Addition of T'liird .Floor to Patient Wing. Addition of third floor to South tiring of Hospital to provide 14 patient beds 11507 sq. ft. " "78 sq. ft. plus ne,,- corridor to surgical area plus elevator extension Sl rTC�iAI - Addition of Third Floor Sumranary Temporary P�ailding Units - construction and equipment P-:?no`Tat 1-or:s - construction and equipment ':'�;m nati-ent :iin - construction and eauipmient P,xpansion of Park.inEr Continency at 10 percent Total Im mf-diate Needs To ? �'I�ta:Me . from Arkansas Legislature To b^ obtained from other sources equipment construction and sc, ft. cost furnishings 4507 $402,000 $50,000 4507 $402,000 ---$50300b $326,280 8o3,300 452,000 65,000 164,658 $1,811,238 220,000 591,238 ?�l:;n:: I'. 7i� .stc d from I1'ederal �iovernm�mt ;1,000,000 r BOARD OF TRUSTEES Ar anJaJ Children's Hospital 804 WOLFE STREET I LITTLE ROCK, ARKANSAS 72201 PHONE 376.4621 25 September 1978 Mr. John Thomas City of Little Rock 701 West Markham Little Rock, Arkansas 72201 Dedicated to the Care of Sick and Crippled Children Leland R. McGinness, Administrator Betty A. Lowe, M.D., Medical Director Dear Mr. Thomas: We have received a copy of your letter to Nabholtz Construction Company relative to the granting of a construction permit at Arkansas Children's Hospital. Paragraph III states that compliance may be achieved by written agreement of our intent to meet the re- quirements mentioned. This letter, therefore, will serve as our committemnt that construction at Arkansas Children's Hospital will be in conformity with all applicable codes and ordinances. Sincerely, AsilCop and Assistant Administrator BLC:sph CC: Roy G. Beard, Jr. N. Graves ✓J. McCright M. Smith Thomas .Gray Russell Tolman ROBERT CRESS. PRESIDENT • GUY AMSLER. JR. VICE PRESIDENT • JAMES T. DYKE, SECRETARY • JAMES PENICK, JR.. TREASURER JOSEPH D. CALHOUN. M.D.. CHIEF OF STAFF JOHN H BALE. JR M A, JACKSON, M D. MRS LUKE QUINN EMERITUS: STANLEY M. BAIJMAN.iR. COOPER JACOWAY BART ROACH BRUCE R. ANDERSON W C BENNETT LOUIS A. LANFORD BROOKS L. ROSEN JOHN H. BALE ROBERT T DOUGLASS JACK P. LYNN EUGENE B. SMITH, JR A. L. BARBER JAME5 K. FOSTER WILLIAM R. MEEKS MRS W. B WARMOUTH WORTH JAMES HERSCHEL H. FRIDAY. JR. MRS. J. M MOORE FRANK D WHITE WILLIS W. JOHNSON D. BARRETT' HAMILTON, JR, HENRY L. NICHOLS CHARLES B WHITF.'SIDF'• III JACK T LYNN MRS- POREPT i+I�Y,MAN 5 r -"Ry -P I. �' . To Date Time JQ, MESSAGE Of Phone Ext. ) Telephoned Please Phone ),Returned your call Will Phone Again Came in to see you Urgent Message; �;A e C. ) IM e X r ;K > r z in > N 0 0 0 ?; > 0 r X M N z 1A > tin to x 0 En 0 T F