One Community, One Commitment: Taking Parkland into the Future

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One Community, One CommitmentTaking Parkland
into the Future
One Community, One CommitmentTaking Parkland
into the Future

• Parkland Health Hospital System
• September 18th, 2008
• Presented by Ron J. Anderson, MD, MACP, President
  CEO

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Parkland Remains Areas Busiest Hospital System
Observation days increased due to chest pain and
abdominal trauma protocols, reducing admissions
by over 2,000.
Source PHHS Annual Reports
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Parkland Fills the Gaps for Dallas County
4 of 10 HIV/AIDS patients treated here
1 in 4 trauma cases go here 4 in 10 for major
trauma
More than half the countys doctors train here
More than 1 in 4 residents lack insurance and are
likely to seek care here
More than 3 of 10 babies born here
Source Parkland Health Hospital System, 8/2008
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Parkland Is An Essential Resource

• Named one of Americas Best Hospitals by U.S.
  News World Report for 15 consecutive years
• 1st and busiest Level I Trauma Center in the
  region
• Second largest civilian burn center in the U.S.,
  regarded as among the best
• Major regional resource for disaster
  preparedness, developing plans that have been
  adopted around the world
• On call for U.S. President while in North Texas

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Parkland Desperately Needs a New Facility

• The Dallas area population is booming, and the
  regions population is projected to double by
  2025.
• Parkland currently operates at full capacity with
  no flexibility for meeting greater demand. We
  have now more than 1 million total patient visits
  a year.
• Built in 1954, the hospital building is 54
  undersized for current patient volumes
  renovating the current space would result in a
  40 loss of beds and would be more costly than
  building a new hospital.
• Patient rooms are not up to current standards.
• We cannot take advantage of all modern medical
  technology.
• Were forced to implement a rationing system for
  certain ailments.
• In some departments, patients beds are in
  hallways while waiting for treatment.
• In 1954, care was delivered on wards. Today AIA
  guidelines, which are hospital codes followed in
  47 of the 50 states, calls for use of private
  rooms.

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Why Not Renovate?

• Renovating the current building would
• Result in a 40 loss of beds
• Be more costly than building a new hospital

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Master Facility Plan Revised Total Project
On March 14, 2008, the Blue Ribbon Panel
recommended that Parkland pursue completion of
the total master facility plan project
(hospitals, clinics and office buildings and
parking) with estimated total project costs of
1,371 million. On June 24, 2008, the DCHD Board
of Managers approved a revised projectwhich
meets the requirements of the Blue Ribbon Panel
recommendationcalling for new campus on the
north side of Harry Hines Blvd. by using a single
efficient hospital, moving space to lowest cost
facilities, maximizing surface parking, which
reduced estimated total project costs by 100
million to 1,271 million.
Clinics
Offices
Parking
Hospital
Lofland Parking- demo
Parking
Parking
Harry Hines Blvd.
Present Hospital
Present Clinics
ER Parking- sold
Motor St. Parking
Amelia Ct. Parking
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Revised Total Project Scope and Costs
New Replacement Hospital 862 adult beds, 1.68
million square feet, open April 2014 1,053
million (83) Adult bed complement
Completed Shelled Total
Current 675 0
675 Proposed 816 46
862 Capacity Increase 141 (21)
46 187 (28) Clinic Buildings
387,000 square feet, open April 2014
105 million ( 8) Office Buildings 269,000
square feet, open January 2011 50
million ( 4) Parking (2,035 new garage spaces,
2,800 new surface spaces) 42 million (
3) Net Land Purchases, Sales, Demolition,
etc. 21 million ( 2) Total
Project Costs 1,271 million - 862 beds,
plus 60 beds for an expanded PMR service and 46
beds for enhanced inpatient services, equals the
968 beds per the PwC/Blue Ribbon Panel
studylocation which is yet determined. The new
replacement hospital also includes 117 newborn
and 96 NNICU beds and is included in the
projects cost.
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Proposed Project Financing
G. O. Bond Proceeds Series 2009
534 million Series 2011 or
2012 163
million Revenue Bond Proceeds
42 million Philanthropy
150 million Interest on
Bond Proceeds 32
million Future Cash (Note 1)
100 million Cash Reserves
250 million Total
Project Costs 1,271
million G. O. Bond Size 705
million Revenue Bond Size 42
million Total Bonds 747 million G. O.
Bond Tax Support 2.5
cents Tax on Median Homeowner (Note 2) 46.24
Note 1 - Future cash of 100 million in excess of
operating cash reserves would be required to be
transferred to the project fund prior to
beginning construction on the 105 million clinic
buildings. Note 2- Includes operations tax
support of 1 cent beginning in 2014 median home
value 132,000.
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Capital Campaign Well Underway
We are firm believers in Parkland, and in the
power of public-private partnerships to transform
communities. I cant imagine anybody in this
city who has not been touched by Parkland
personally. They may not even know it, but they
have. From its Level I trauma center to
immunization programs that prevent illnesses from
spreading across the region, Parkland affects us
all. For us, this was a wise investment, a way to
have the greatest impact on the greatest number
of people. Serena Simmons Connelly Director of
the Harold Simmons Foundation.
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Master Facility Plan Option Recommendations

• The Board has endorsed the project with a total
  cost not to exceed 1,271 million. The maximum
  amount of bonds (747 million) was based on the
  assumptions below
• The maximum amount that could be serviced by ad
  valorem tax rate for Parkland will not exceed 2.5
  cents per one-hundred dollars of assessed
  valuation of taxable property after all the
  authorized bonds are issued.
• The estimated 105 million for the clinic will
  not be paid for from bond proceeds, but will be
  constructed using available cash reserves when
  and as available.
• Annual hospital system revenues of the District
  will be set aside and applied to pay the debt
  service on at least 42 million of bonds issued
  for the purposes of providing parking facilities.
• 250 million of existing cash reserves will be
  applied to fund a portion of the planned
  improvements.
• 150 million of estimated philanthropic gifts for
  the purpose of paying a portion of the project
  costs.
• The Board of Managers will approve necessary
  resolutions at its July Board meeting.

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• You cannot escape
• the responsibility of tomorrow
• by evading it today.
• Abraham Lincoln

You cannot escape the responsibility of tomorrow
by evading it today. Abraham Lincoln