Wishard has developed most probable-, best- and worst-case scenarios on the cost of a new Wishard. Even under the highly unlikely worst-case scenario, Wishard has adequate revenue to meet all bond obligations with no property tax increase.
The most probable-case scenario would result in $612.9 million in bonds. Under the best-case scenario, Wishard would lower bonding needed to $604.3 million using Build America Bonds included in the federal economic stimulus plan, which is intended to encourage construction projects like a new Wishard. The absolute worst-possible case, which has Wishard unable to raise any money through philanthropy and paying a full 100 basis points over the current bond rate, still leaves Wishard $6.7 million more than is needed to cover bond payments with no tax increase.
Bonding will allow $754 million for a new Wishard campus. Wishard, the Indiana University School of Medicine, Purdue University School of Pharmacy, the Regenstrief Institute, the RL Roudebush VA Medical Center and other neighbors plan to participate in a public-private initiative with a lease back provision to provide a power plant serving the area, additional parking and flexible offices on the property. These joint projects will not require bonding.
Wishard has saved more than $150 million to put toward the project. New, more efficient facilities will be 33 percent smaller and save 45 percent in utility costs, yet able to serve more patients than Wishard's current facilities.
Wishard is confident that if it acts now, it can transition into more efficient facilities before cutting or compromising services, quality and efficiency. Each year of delay will cost $53 million, and increase the risk of catastrophic failure.
New, more efficient facilities can be opened as soon as December 2013. Funding mechanisms are feasible. Commodities pricing is falling - which is good news for the total project price tag. And from a regional economic development standpoint, this major construction project will be a shot in the arm for the local economy.
Wishard hopes the research provided is compelling evidence that a new Wishard is a "win-win-win-win" for central Indiana. New facilities will allow us to continue to provide superior services to our city's citizens with no tax increase, while also operating more energy efficient, green facilities. Further, this initiative supports and advances life sciences initiatives critical to the long-term viability of our region.
A New Wishard with No Tax Increase
(click to download pdf)
Matthew Gutwein discusses the best option for a new Wishard
(click to launch video)
Matthew Gutwein discusses the cost of a new Wishard
(click to launch video)