Public meetings set as county considers bond election for hospital expansion

Tarrant County Commissioners are considering a bond election in November to raise $809.1 million to dramatically expand and upgrade the aging John Peter Smith Hospital campus on the city’s near south side by adding a 10-story patient tower and a separate five-story psychiatric hospital.

But first county commissioners want to hear from the public.

Starting Tuesday and running through July 22, town hall meetings will be held in each of the five county precincts, where officials will outline plans. Work would start next year on improving the facilities and take until mid-2022 to complete. If approved, construction of a new taxpayer-supported hospital would begin in the second quarter of 2017.

County Administrator G.K. Maenius said commissioners want feedback on the construction plan as well the proposal to issue bonds. If approved, residents would vote on the bond proposal Nov. 3. Commissioners have until Aug. 24 to make that decision.

“What we’re trying to do is make sure the public is fully aware of what the plans are,” Maenius said. “We will take into consideration the comments. Medicine is changing and how we approach the delivery of care. Functions need to be next to each other, and there is a growing need for a psychiatric hospital with total care under one roof.”

County commissioners have known for at least five years, following an internal hospital district study, that added facilities are needed to accommodate increased demand. Now that it has a clear idea of its needs, the hospital district board wants to move forward and has asked the commissioners to pursue a bond election.

Bond market conditions are favorable, with historically low interest rates. He said the county’s financial advisers said the additional debt could be funded through current tax levels.

Maenius said commissioners do not plan to raise the tax rate for the hospital district. The bonds would be paid over 30 years through increased revenues from higher property values and increased hospital revenues gleaned through the efficiencies.

“County commissioners have no interest in raising the tax rate,” Maenius said.

More efficient patient services

JPS said it handled more than 1 million patient encounters in 2014, including more than 20,000 behavioral health patients. Last year, its emergency room peaked at 400 patient visits a day, compared to 175 five years ago.

“Our last two months, the emergency department’s census has been really high,” said J.R. Labbe, spokeswoman for the hospital.

The county’s population is expected to rise by 300,000 residents in the next decade, and pressure from uninsured patients is expected to continue, the hospital forecasts. The hospital also said it is lagging behind other healthcare providers in the county.

Key to the district’s plan is making patient services more efficient. That involves moving the hospital’s main patient tower from the west side of Main Street to a new facility on the east side, closer to its emergency department, including operating rooms and an intensive-care unit. The current 11-story hospital was completed in 1971.

The hospital is licensed for 537 beds and would expand by 87 beds to 624 in a new facility.

Renovations to the current hospital for its outpatient services will improve long waiting times in remote corridors, the hospital district says. Many patients who now use the emergency room for routine visits would be diverted to the expanded outpatient clinics under the plan.

“We have some real challenges in our outpatient clinics,” Labbe said.

The 10-story, 739,011-square-foot hospital tower would cost $510.5 million, adjoined by a $72 million parking garage with 2,300 spaces. JPS would add a five-story, 220,000-square-foot psychiatric hospital on the west side of Main Street. Capacity would increase from 96 beds on the 10th floor of the current patient tower to 148 beds.

Another $93.7 million is needed to renovate its other facilities, including the existing parking garage at May Street and Allen Avenue.

In 2010, the hospital conducted an exhaustive facility needs assessment at its Main Street campus on the city’s near south side that, among other things, called for the reorganization of services. The plan was reviewed again in 2013 by the JPS Board of Managers, which earlier this year voted to send it on to the commissioners.

Design work starts in 2016

Under the plan, $714.5 million in bonds would be sold in February 2016 for the new construction projects. The remaining $94.5 million earmarked for renovation work would be sold in February 2018.

If voters approve the bond package, design work would start at the beginning of 2016, with construction of the new hospital starting in the second quarter of 2017 and completed by early 2020. Renovations to the current hospital would begin at that point.

Construction on the new psychiatric hospital would start in late 2016 and be completed mid-2018.

Beyond improved patient services, Labbe said, the expansion and renovations will improve conditions for employees, physicians and its residency programs.

“Hopefully, with the new facility we would be able to expand and enhance the residency experience,” she said.

This story was originally published June 26, 2015 at 5:57 PM with the headline "Public meetings set as county considers bond election for hospital expansion."