“Clearly there is an implication that members of the Floyd County Commission have done something inappropriate in the backing of bonds by Floyd Medical Center,” FMC President and CEO Kurt Stuenkel wrote in the letter.
A statement issued by John Quinlivan, CEO of RRMC, indicated that it is appropriate that financial questions be asked.
FMC is a not-for-profit hospital. Redmond is owned and operated by the for-profit Hospital Corporation of America.
“I am hopeful you will see through the misinformation Redmond’s leadership has provided in calling for a ‘level playing field,’” Stuenkel wrote. “They seek to disrupt the stable relationship that FMC has with the Floyd County Commission.”
The Floyd County Commission has approved the issuance of $20 million in new financing and the refinancing of $31.8 million in older bonds for FMC.
The new bonds will fund work on the fourth floor, renovations to the cath lab and related equipment, expansion and improvements to the emergency room, a variety of small renovation projects throughout the hospital, and expenditures related to the enhancement of electronic medical records purchases, FMC officials said.
The refinancing of older debt will save the hospital approximately $4 million.
Quinlivan issued the following statement:
“It is appropriate that the citizens of Floyd County inform themselves about the financing and management of Floyd Medical Center. Are executive salaries at Floyd Medical Center appropriate? How much public debt has Floyd Medical Center accumulated? To what degree are the citizens of Floyd County at risk should Floyd Medical Center default? What is the value of the tax exemption Floyd Medical Center enjoys and what does it cost Floyd County in lost tax revenue? These are all reasonable questions. It is appropriate they be asked.”
According to an email issued by FMC spokesman Bill Fortenberry, Stuenkel’s letter was hand delivered Friday to Floyd County Commission candidates.
A copy of the letter posted on the FMC website indicated it was also sent to Hospital Authority members, state lawmakers and candidates for local state House and Senate seats.