The Piedmont City Council has agreed to a local nursing home’s request to help restructure its debt in order to increase cash flow and improve services.
During Tuesday’s council meeting, city officials voted unanimously to allow the Piedmont Health Care Center to consolidate and refinance its $2.1 million dollar building debt.
In July, Trudy Lowe of Preferred Health Services, the managing company of the Piedmont Health Care Center, which is owned by the Piedmont Healthcare Authority, sought council approval of the company’s plan.
“We want to consolidate all debt by taking out a commercial loan,” Lowe said, adding, “We’d like to pay off all the debt and reduce our monthly expenditures for the debt service.”
Under the plan, the center’s monthly payments will be reduced to about $20,000, down from the almost $42,000 it currently pays.
More importantly, the refinancing is expected to provide additional funds for several facility upgrades, which Lowe said would make the facility more competitive.
While the number of beds is currently capped at 91 by the state of Alabama, Lowe said the nursing home would be able to build a new wing, adding 12 private rooms to the 12 that the facility currently has.
As private rooms continue to become more popular, this would allow the center to generate additional revenue, as the rooms are more expensive.
Lowe said the center would also be able to add other amenities, such as a rehabilitation gym.
In other business, the council approved several abatement measures, which include cutting the grass at various abandoned properties around the city.
The council also considered a one-time bonus for 47 city retirees at a total cost of $25,218. Without a “second,” the motion died on the vine.
Bills for payment were approved in the amount of $743,519.84.
The next regular Piedmont City Council Meeting is scheduled for Tuesday, September 4th, following the work session, which is set for 5:30pm.