Labette Health County Medical Center (“Labette”) project that addresses the expansion and renovation of their hospital in Parson, KS. The Parsons community, including the surrounding six-county area that Labette serves, is in critical need for improved access to healthcare services within the severely distressed, Low-Income Community (“LIC”).
Based on the Robert Woods Johnson County Health Rankings, the communities the Sponsor serves has some of the lowest health outcomes in the entire state of Kansas. Out of the 104 Kansas counties that were ranked, Labette’s primary service area includes Labette, Neosho, and Montgomery, were respectively ranked at 96, 101, and 103 counties in health factors. Furthermore, within the last four years, three hospitals have closed in Labette’s surrounding area, including Mercy Independence, Mercy Fort Scott, and Oswego Community Hospital. Due to these closures and the sudden increase in demand, the Sponsor projects a 5% compound annual growth rate for the next seven years. Labette Health’s expansion and continued success is vital to the community’s welfare.
In order to meet its anticipated demand, the Sponsor explains the following updates are required to maintain a high-quality care:
- Upgrades to the medical surgical unit and conversion to a private bed model
- The addition of operating room capacity
- Updating the intensive care unit including the addition of inpatient dialysis
- A complete modernization and renovation of the birthing center
- Construction of a new orthopedic and surgical wing with an addition of 18 private beds
- Expansion of their central plant in order to support the expansion
It is important that the hospital grows in order to meet the healthcare demand given that Labette Health is the only Level III Trauma Center in the three-county primary service area and one of only five in the state. The State of Kansas designates Kansas hospitals as Level I, II, III, and IV in order to match the needs of a trauma patient. The Level III designation authorizes the Sponsor to provide for 24-hour Orthopedic Trauma Care amongst several other required services. As a result of the NMTC financing, the Sponsor will be able to maintain and expand its level of medical service to the low-income population, while creating and retaining jobs within the community.
Labette County Medical Center is managed by Labette County, Kansas, and governed by a nine-member Board of Trustees appointed by the Board of County Commissioners of the County. It has served a six county area since 1961. According to its fiscal year 2019 audit, the entity experienced an increase in net operating revenues and net position compared to the prior year.
- Median Family Income 79.4%
- Poverty Rate 20.3%
- 33 New FTE created
- 102 Construction Jobs created
The Project is located in a severely distressed census tract based upon the 2011-2015 census data by virtue of being located in a location with a non-metropolitan designation, poverty rate of 20.30% and income levels of 79.74% of the area median. The Project is also located in a targeted state. The Project is anticipated to expand and renovate the hospital to serve a six-county area that is in critical need for improved access to healthcare services. The Project is expected to serve 1,096 LIPs and 2,479 LICRs (unique patients per year) while creating 33 direct full-time jobs and 102 temporary construction jobs. In addition, the Sponsor provides community oriented educational training to local residents relative to their mission and prevention, as well as providing for workforce training and placement programming. Based on the CDE’s mission of providing subsidized financing to medical facilities which support distressed communities, this Project appears to directly align with the CDE’s mission.