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Vol. 124 Friday, November 06, 2009 No. 219
Farris Bobango PLC TDN Blog

Saint Francis Makes Progress on Bartlett Expansion

TOM WILEMON | The Daily News

READY FOR GROWTH: A planned expansion of Saint Francis Hospital-Bartlett is anticipated to create about 155 full-time jobs with a total annual payroll of $6.9 million once all three phases are complete. -- PHOTO BY TOM WILEMON

Although construction cranes have yet to appear, Saint Francis Hospital-Bartlett is moving forward – albeit behind the scenes – on a $45.4 million expansion that will double the number of hospital beds.

The hospital, which is owned by Tenet Healthcare Corp., has narrowed the field of contractors vying in the project to three and is working with the city of Bartlett on obtaining tax breaks, said Derek Venckus, the hospital’s public relations and marketing coordinator.

But a construction timeline has not been set. The board for the Tennessee Health Services Development Agency approved a permit in February for Saint Francis to add 96 hospital beds to the existing 100 beds. The state certificate of need is good for five years.

Hospital officials met this week with Bartlett officials about the payment-in-lieu-of-taxes (PILOT) program, which offers financial incentives for private investments that create jobs. The hospital expansion will occur in three phases. Once all three are completed, Saint Francis expects to add 155 full-time jobs with an annual average salary of $44,720 and a total annual payroll of $6.9 million.

“The construction timeline kind of depends on these approvals once everything is sorted out with the contractor,” Venckus said. “Then we can have a definite concrete timeline from start to finish that we’re going to try to meet. Right now, it’s still variable.”

The $45.4 million figure was an estimate for the expansion provided to the state. That number could change as a result of the request for proposal process from contractors. Hospital officials have yet to meet to select a contractor from the three finalists.

“Now it’s a matter of sorting through them and selecting who we think will be the best fit for what we’re trying to do,” Venckus said.

He would not name the three finalists.

Tenet, which also operates Saint Francis Hospital-Memphis, opened the Bartlett hospital June 1, 2004.

This week, Tenet said it lost $3 million in the third quarter. However, the company upped the estimate for its adjusted profit for the full year by $25 million. Tenet now expects a profit in the range of $925 million to $975 million before accounting for income tax, depreciation and amortization costs.

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