Cookeville Regional told the Cookeville City Council during a Monday work session it is close to moving forward with the new inpatient rehabilitation hospital.
Cookeville Regional would need the council’s approval to finalize a joint venture with Encompass Health. That includes a ground lease agreement, and approval to issue bonds for the construction of the project. Cookeville Regional Trustee Luke Hill said the project would help the community.
“We anticipate breaking ground in late next year if all of these are approved and we are just right at the one-yard line, ready to finalize some exciting future for our inpatient rehab facility,” Hill said.
Initially, CRMC was to have a 30 percent ownership in the joint venture and issue an estimated $13 million bond for the project. Hill said, now, the Medical Center plans to hold 50 percent ownership, issuing an estimated $25 million for the project.
“If you recall when we brought this originally back in May, the numbers have changed a little bit,” Hill said. “We have renegotiated this up to a 50/50 partnership with Encompass Health Care, and so the debt numbers are a little higher than they were before. So we are requesting debt up to $25 million for our 50 percent ownership.”
The proposed inpatient rehabilitation hospital will provide an additional 50 private rooms and will be located just North of the current inpatient facility. Cookeville Regional CEO Buffy Key said building a new inpatient rehabilitation hospital in Cookeville is an exciting time.
“We see patients all the time that are needing inpatient rehab that may have had to go to a higher level of care in other cities and they want to come back home to have their inpatient rehabilitation, now they are gonna have the space,” Key said. “All private rooms. 50 private rooms. I think it will just be an outstanding thing for the community, and by the way this is for inpatient physical rehabilitation only.”
City Manager James Mills said he thinks a new inpatient rehabilitation hospital city will be a great thing for Cookeville and the Upper Cumberland. Mills said documents are still being tweaked but expect final documents to be ready for council’s approval this Thursday.
City Council will meet Thursday at City Hall starting at 5:30pm.