A Clean Bill of Health
Memorial Hospital and Medical Center of Cumberland and Braddock Hospital (formerly Sacred Heart Hospital) joined together in 1996 as Western Maryland Health System (WMHS) to enhance healthcare services and manage resources to the community. Hord Coplan Macht Architects was hired to work with WMHS to finalize its master plan. It became apparent as the team progressed that existing facilities were not adequate to support its mission. The Board made the decision to build a new state-of-the-art replacement hospital.
Financial evaluations determined that WMHS would not meet the desired bond ratings for the proposed financing of the new hospital. WMHS explored alternative financing options, including the Federal Housing Administration Section 242 Program. The federal insurance allows them to issue higher-rated bonds with lower interest rates that reduce the long-term cost of borrowing. The program puts the full strength of the government behind hospitals that have more difficulty accessing capital.
As construction manager, the joint venture partnership of Barton Malow/Mascaro had a role in complying with reporting requirements related to this funding. As the Guaranteed Maximum Price was established, line item costs were itemized in accordance with the FHA-established guidelines. Our personnel also worked closely with subcontractors to provide guidance in establishing an acceptable bid breakdown and requisition for progress payments to meet these requirements. Cost allocations within each line item had to be understood by our project team so that proper accounting could be carried out throughout the project. Once the project team understood the format and how costs could be assessed, they had no difficulty processing our monthly requests through to approval and payment.
The new WMHS replacement hospital project is one of the largest FHA hospital loans ever structured. The project team of WMHS, Hord Coplan Macht, and Barton Malow/Mascaro worked together to incorporate the minor changes in reporting required under this funding