- The Enterprise
- The Recorder
Civista Medical Center officials told the Charles County commissioners Tuesday that the hospital is in robust health.
In the last year, the hospital, which joined the University of Maryland Medical System in July 2011, saw the opening of its Center for Wound Healing in August and the grand opening of the Irene Davis Pavilion in October.
In his remarks on the report, delivered in an eight-minute video, Civista CEO Noel Cervino said that the hospital’s membership in UMMS has been a boon to the operation.
“Since our affiliation, we’ve been able to expand our services, upgrade our facilities, increase our campus size and recruit more doctors to meet the growing medical needs of our community,” Cervino said in the video. “As a not-for-profit health care system, our mission at Civista Health is to provide you and your family with excellent health care close to home.”
Last year, the hospital was one of two Maryland hospitals recognized by the Joint Commission as one of the Top Performers on Key Quality Measures, joining just 18 percent of hospitals nationwide, Cervino told the commissioners in the video. The hospital also received a composite score of greater than 99 percent on its Hospital Quality Measures, ranking it among the best hospitals in the state, according to a report fact sheet.
The hospital also completed a four-phase renovation process to its “core lab” system, added four new emergency rooms, unveiled the results of the health needs assessment conducted in 2011 in partnership with the Charles County Department of Health, and maintained a score of 100 percent performance in children’s asthma care and heart attack treatment for all four quarters of fiscal 2012. The hospital also earned the Workplace Excellence Award and Health and Wellness Trailblazer Award for the eighth straight year.
The commissioners also heard a presentation on Civista’s debt security from the county’s Director of Fiscal and Administrative Services Deborah Hudson and Cheryl Guth, the county’s bond counsel from law firm McGuire Woods, for changes to the “underlying security” on debt from the hospital.
The county-issued bonds, which were granted to Civista for construction, came with a promissory note from the hospital in which they agreed to pay the amount borrowed plus interest, Guth said, which was secured by the hospital deed and revenue. The hospital also had $75 million in debt from a Maryland Health and Higher Educational Facilities bond.
UMMS is looking to reissue bonds through MHHEFA, including the Civista bonds. In exchange for the termination of the county’s note, Guth said the county would be issued a new senior lien through UMMS, granting the county access to a larger debtor pool that would include the entire UMMS network and not just Civista. The county’s lien position would ultimately increase.
Guth recommended the board pursue the agreement.
“This would increase your lien position from a subordinate lien to a senior lien, and would give a bigger pool of assets that you’d be looking towards to get paid back,” Guth said.
From the financial side of the spectrum, financial counsel Sam Ketterman said, UMMS’ “significantly higher” credit rating than Civista’s would make the new lien conditions an asset for the county.
The commissioners voted unanimously to adopt the new terms.