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Hospital numbers going public

By Rae Kruger
POSTED: January 13, 2009

Deann Holland of Avera Marshall called them the "magic numbers."

Those numbers are the appraised values for the Avera Marshall Regional Medical Center facilities and operations. The public has been asking how much the medical facilities are worth, as well as what the operations are worth.

"Those magic numbers will be available," Holland said of a public information meeting set for 6:30 p.m. Thursday at the hospital.

City attorney Dennis Simpson said the appraised values and what the money will be used for are what the public seems most interested in as part of the proposed sale.

Thursday's meeting follows a closed meeting Wednesday between the Avera Marshall hospital board and city council. The council also has a planned Jan. 20 meeting in which the proposed sale will be discussed.

"I'm not sure if the council will be comfortable with making a decision on the 20th," Byrnes said.

He thinks the council's desire to make a decision on Jan. 20 will depend, in part, on the outcome of Thursday's public information meeting.

The appraised values as well as other negotiating points of a proposed sale of the city-owned medical center to Avera Health of Sioux Falls, S.D., will be discussed at a closed meeting Wednesday between the Avera Marshall hospital board and city council.

The public will learn more about the appraised values Thursday, but specifics on what the money raised from the sale may wait.

The council has not yet formally decided what to use sale money for, Byrnes said.

"That may not be decided for some time after the sale," Byrnes said.

The council and the community will need to decide the appropriate uses for any money made from the sale of Avera Marshall, Byrnes said.

Sales proceeds can be used for a variety of public projects, which is more than the city originally believed, Byrnes said.

A legal review showed money from the sale of a city-owned hospital does not have to only be used for medical or health care projects, Byrnes said.

"There are less restrictions than we had initially thought," Byrnes said.

While the city has no legal obligation to use sale proceeds for only health care or medical projects, it may want to do narrow the uses as a matter of policy, Byrnes said.

"Even if we are not legally restricted, what is the policy guideline?" Byrnes said.

The council and the public need to discuss the best uses for proceeds from the sale of Avera Marshall, Byrnes said.

If the council agrees to sell Avera Marshall to Avera Health, the sale won't be final until November, Byrnes said. There will be time to determine the best uses for any proceeds, he said.

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