Lee Memorial lays groundwork for expansion

The finance committee voted to continue negotiating with Oakbrook Properties to purchase a 21.66-acre tract behind the Bonita Community Health Center in Estero. It also approved a recommendation to issue about $95 million in bonds to pay for the expansion of HealthPark Medical Center, a move that officials said might slightly lower the hospital's financial rating.

Both moves would increase Lee Memorial's presence in an area with an affluent and elderly population coveted by other private hospitals. Bonita Community Health Center, a joint venture of Lee Memorial and NCH Healthcare, just registered its first profit last year, a slight $22,021.

Oakbrook is currently asking Lee Memorial for $8 million for the property behind the health center. A purchase of the property also would include restrictions on the square footage of office and retail space that Lee Memorial could construct.

The committee members approved continued talks with Oakbrook. Several members highlighted the massive growth in Bonita Springs and Estero. Pete Doragh, a finance committee member, wondered about the need for that much land, but did not protest more talks to purchase it.

"We have no use for all that retail space ... and only most marginal use for office space," he said.

The desire to plan for population growth also fueled the committee's approval to use bonds to pay for the growth of HealthPark. The expansion will raise the number of beds there from 238 to 360, with additional beds in pediatrics, intensive care and medical/surgical care. The hospital also will add more technology to children's care and cardiac care.

John Wiest, the chief financial officer of Lee Memorial, told committee members that any downgrade by rating agencies would be minor and carry little in the way of financial burdens for the hospital. Officials told the committee that the hospital could regain an A1 bond rating in 12 to 18 months if it demonstrated a solid financial performance.

"The impact is not that material," Wiest said.

No committee members argued the decision, and several said the move would help the hospital's growth be more orderly. But the decision to issue that much money in bonds generated little debate.

"This is a big decision," said Spring Rosen, the chair of the finance committee after the move to issue bonds was overwhelmingly approved.