Earlier this month, the Wagoner City Council approved a refinancing plan under which the city will provide and guarantee two full loans to the hospital, according to the report.
The two loans include $3 million from First Bank and Trust Co., which the city council and Wagoner Public Works Authority guaranteed, as well as an additional $1 million, which was not guaranteed by the city when the hospital took out the loan last year.
Over time, the hospital managed to pay $515,575 of the original $3 million, taking the loan down to approximately $2.4 million, according to the report. The report states that the bank pushed the refinancing to essentially take the $515,575 that had been paid towards the $3 million loan and apply it to the unsecured $1 million loan.
Subsequently, the original loan once again reached $3 million, and $484,425 of the $1 million loan remained unsecured at the bank, according to the report. Now, the report states, the city has agreed to refinance the loans and guarantee the remaining, bringing the total of the two loans to $3.48 million.
More articles on healthcare finance:
Partners posts $108M operating loss as insurance division struggles
Oklahoma hospital explores bankruptcy
Texas hospital abruptly closes after failing to make payroll
