Hillsboro Council approves development agreement for new hospital

Meeting first as the Hillsboro City Council and then as the city’s Public Building Commission, councilors approved the city?s development agreement with HMC/CAH Consolidated Inc., owners of Hillsboro Community Hospital, without a dissenting vote at the Aug. 5 meeting.

The agreement obligates the city to provide a bond issue estimated at $1.5 million that would pay for site improvements in the early stages of the company building an $11.4 million facility for the local hospital. Under the terms of the agreement, the HMC/CAH will repay the bond.

Council Shelby Dirks abstained from voting, citing his standing as an HCH employee.

Prior to the votes, Michael Reeh, a local physician, and Cindy Reeh of Hillsboro implored the council not to sign the agreement with HMC/CAH, a private company that they said has demonstrated a poor record of financial and ethical conduct, including filing for Chapter 11 bankruptcy in 2011.

More coverage of the meeting will appear in the Aug. 12 issue of the Hillsboro Free Press.

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