Foundation refuses to donate clinic

The Crook County Medical Foundation Board has refused a request to hand over the new clinic building in Hulett to Crook County Medical Services District (CCMSD) once construction has been paid off. Instead, the foundation says it intends to open up the possibility of leasing the building to an external medical provider.

“The [foundation] board voted unanimously to open lease negotiation with any medical service vendor interested in providing service for the Crook County communities,” says a letter signed by Bill Motley, secretary for the foundation.

The letter was penned in response to CCMSD’s offer to lease space in the clinic, known as the Red Bluff Medical Center. One of the terms specified in the offer, penned by Kara Ellsbury, board attorney, was that, “As soon as all debt associated with the land and building is repaid, the foundation shall gift the land and building to CCMSD.”

Leasing space in the building has been a point of contention between the two boards, with some trustees concerned that CCMSD simply cannot afford to lose more money through its clinics. While the clinics attached to a rural hospital district are designed to be loss leaders in order to push traffic towards the services available in the main hospital, trustees felt the addition of a monthly lease would dramatically increase this loss and therefore be unsustainable.

After significant discussion at last month’s CCMSD board meeting, it was agreed that, if rent was only charged in the short term while the foundation pays off its construction loans, the loss could be offset by the eventual acquisition of the building for CCMSD. As the foundation had indicated that it did not wish to remain a landlord, Ellsbury was directed to include the request in CCMSD’s offer.

The offer also specified that the lease should last for successive one-year periods; that it include monthly rent in the amount of $1.25 per square foot for approximately 4840 square feet; and that if CCMSD exercises its option to renew, the monthly rent shall be agreed upon at the time of renewal. Motley’s response indicates that these terms are acceptable to the foundation.

However, he states, the request to gift the building to CCMSD, “was not mentioned or discussed with this board,” referring to a joint meeting held in mid April between the district and foundation.

The letter does not specify whether any non-county medical service providers have expressed interest in leasing the clinic space.

Motley’s letter invites CCMSD to re-enter negotiations for the lease agreement and sets a deadline of May 17 for the CCMSD board to express interest in doing so.

With negotiations ongoing, it becomes less likely that CCMSD would be able to move into the new building during the planned timeframe of June. However, Erickson assures the community of Hulett that this will not impact their ability to access healthcare services as the current clinic is still open for business.

“We, the district, have been and continue to be a medical provider in the Hulett community,” he says. “There is no break in service.”