09/20/1989 Meeting - Laserfiche WebLink

Home Browse Search

e For example, a loan from the authority could be used to construct an office to hold the records of an in-patient medical facility, but could not be used to construct offices for physicians. Mr. Wong said it is possible that businesses providing services similar to Sacred Heart's nonacute care services could be at a competitive disadvantage. Mr. Wong said the ordinance can explicitly restrict the type of projects that can be financed through the authority, or it may be relatively broad and responsibility for limiting projects can be left to the Board of Directors. Ms. Ehrman asked if terms such as acute care and in-patient are statutorily defined. Mr. Gary said these terms are not defined within the statute that gives the council authority to create a hospital authority. He recommended that the council define these terms in the ordinance. Mr. Holmer favored drafting the ordinance to create a hospital authority now, but reserving for future decision which organizations would be eligible to seek financing from the hospital authority. He thought the Board of Directors should be responsible for evaluating whether an applicant is eligible for bonding from the hospital authority. Mr. Bennett and Mr. Boles disagreed with Mr. Holmer. They felt that if a hospital authority is formed, there should be a clear intent of its use from the outset. Ms. Ehrman said the first sentence of the purpose section disturbs her because it does not address the cost of the care; the purpose of establishing the hospital authority is so that medical businesses are able to provide more e affordable health care. Ms. Ehrman suggested that the sentence be amended to read, "in order to provide the people of Eugene with access to adequate and affordable medical care and hospital facilities. II Mr. Bennett said he was comfortable with the purpose section as drafted. Mr. Boles shared Ms. Ehrman's concerns about the purpose section. He suggested that the words "not-for-profit health care" be substituted for the phrase "acute care in-patient hospital." Mr. Boles said public benefit is the primary reason for forming a hospital authority and the council should not restrict the potential applicants for financing as long as they are fiscally responsible. Mr. Boles suggested that the council break its discussion into two pieces-- Who can come before the authority to request bonds, and for what purpose may they request bonds? He said his suggested change to the ordinance addresses only the first question, broadening the charge to the authority to accept bonding requests from any nonprofit health care provider who wishes to provide medical projects for the community. Mr. Boles said this is the only way that the hospital authority can effectively serve the residents of Eugene. Ms. Schue voiced concern that the establishment of a hospital authority would give Sacred Heart General Hospital a competitive advantage that would eventually put independent medical facilities out of business. She said this is of particular concern since Sacred Heart General Hospital does not permit e MINUTES--Eugene City Council September 20, 1989 Page 3