Abbeville General borrows money to make $1.7 million of improvements on hospital

The Vermilion Parish Police Jury gave the thumbs up to allow Abbeville General to borrow $1.7 million to make improvements to the aging hospital building.
Ray Landry, the CEO of the hospital, attended a recent police jury meeting. He had to get the police jury’s permission to let the hospital borrow the money by selling bonds.
Landry explained to the police jurors that hospital will use the sales tax it collects to pay off the debt over a 10-year period.
Abbeville General collects $2.6 million from a sales tax. It uses the money to purchase equipment, build rural clinics and whatever the hospital needs to keep it functional. He said the note will be $193,000 a year.
He explained what the money will be used for.
• The hospital is having to get a new chilled water line for the air conditioning system in the hospital. This project will be the most expensive, Landry said. It is estimated to cost $800,000, which involves complete removal and replacement of all the chilled water lines.
• The hospital is having to put up 25 percent share of a FEMA grant for the purchase of the main generator for the hospital and a generator for the Abbeville clinic. The 25 percent share for the hospital is $354,000.
• The hospital has to purchase air handler units at a total cost of $207,000.
• The hospital is expanding its operating room suit at a cost of $200,000.
• Other projects and their costs are: underground water main relocation for a safe room ($50,000), information technology enhancements ($40,000), and a hospital wide temperature monitoring system ($34,000).