FMC VP Rick Sheerin explained that the new $15 million line of credit with Regions will serve as a form of reimbursement for costs associated with the lease agreement to begin operations at Polk Medical Center as part of the takeover of the smaller hospital from the Hospital Corporation of America. The line of credit will be repaid as cash flow at the hospital in Cedartown begins to increase.
Sheerin said the new $10 million line of credit will be used to shore up liquidity. “It’s real critical to build up cash reserves and liquidity ratios,” Sheerin said.
The credit line at Wells Fargo will be used for short-term debt acquired by the hospital and must be repaid at some point during the year.
Sheerin’s financial report for the first six months of FY 2013 indicated the hospital had generated $164.6 million in revenue, approximately $12.1 million less than had been budgeted.
Hospital Authority of Floyd County Chairman Jerry Norman reported that Floyd had provided approximately $55 million in health care to uninsured patients through the first six months of the fiscal year, $4 million above what had been budgeted.
In its lease deal with the Cedartown-Polk Hospital Authority, Floyd agreed that employees of the hospital in Cedartown would not suffer any loss of benefits and a small number of Polk employees are eligible for a higher employer match to the 401K plan than Floyd normally provides. Fewer than 20 employees will be eligible for as much as a 9-percent employer match, compared to the 4-percent maximum match typically offered by Floyd.