PORT TOWNSEND — An architect has recommended construction of a new building as the best option for creating an inpatient mental health facility for Jefferson Healthcare hospital.
In November, the hospital received a $1.5 million grant from the state Department of Commerce earmarked for the establishment of a mental health facility under the auspices of Jefferson Healthcare.
“Rather than renovating an existing building, it makes more sense to build a new one,” architect Steve Rice — a principal in Rice Fergus Miller of Bremerton — told hospital commissioners and staff Wednesday.
“Remodeling an existing building would require a full seismic upgrade and practically gutting the existing structure, which increases the cost,” Rice said.
No plan has been finalized, and the hospital has not yet developed a timeline.
The terms of the grant require the hospital to have the facility operational within two years of receiving the funds, said CEO Mike Glenn.
The clock has been ticking since Jan. 1.
Developing plan
Commissioners will need to address proposed treatment, a financial structure and a location — on or off the hospital campus — before adopting a concrete plan, according to reports presented during the nearly two-hour meeting.
“We are looking to provide a high quality of care at a lower volume than what is typically required to make inpatient treatment sustainable and do it in a way that meets the need of our community,” Glenn said.
“We need to find an innovative model that covers all of the clinical and treatment issues and that allows us to take care of Jefferson County patients here at home.”
No inpatient facility exists in the county now.
The two options discussed Wednesday were a seven-bed psychiatric unit or a 10-bed evaluation and treatment facility. No decision was made.
Of existing hospital buildings available for a facility, Rice presented three scenarios for a space added to the hospital in 1965 that now is used for outpatient services.
A fourth scenario he presented was to tear down the addition and construct a new building in the same location.
All would create between 42,000 and 50,000 square feet of usable space, he said.
New construction cheaper
But new construction would be cheaper, he said.
Rice said retrofitting the structure would cost $3.82 million — well above the projected cost of new construction of $2.75 million to $3.25 million — because of required seismic, building code, energy code and system upgrades.
In addition to the grant, the hospital has requested that $1 million be included in the state 2016 capital budget, the disposition of which will be known in the next week, Glenn said.
That would cover start-up costs. More funds would be needed for operation, according to Chief Financial Officer Hilary Whittington.
Operating costs
The grant does not cover operating costs, creating a complicated revenue and reimbursement structure, she said.
Whittington said an operating unit could generate about $3 million in patient fees and reimbursements. Under this system, the hospital could break even with seven beds.
Whittington’s predictions were theoretical because it is impossible to estimate accurate numbers at this time, she said.
“We don’t want to make it work out on paper and assume certain levels and then be shocked when it doesn’t happen,” she said.
“We need to do this in a way where we aren’t penalized for doing the right thing.”
If a full facility is not built within two years, a temporary or scaled-down operation could fulfill grant requirements, Glenn said.
He said he and Joyce Cardinal, chief nursing officer, “visited Olympic Medical Center and saw a two-room ‘safe room,’ for lack of a better term, that was a great short-term option.
“We have engaged Steve [Rice] and his team to help us understand what a slight remodel would look like. It would be an incremental move but could provide services in a matter of months rather than years.”
While acknowledging obstacles to building the facility, Glenn said hospital officials are committed to making it work.
“We will continue to explore different options to put this together,” he said.
“This is an imperfect solution, but it is probably the best opportunity we will have for any solution for quite some time.”
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Jefferson County Editor Charlie Bermant can be reached at 360-385-2335 or cbermant@peninsuladailynews.com.
