At their Wednesday night meeting, the Johnson County Healthcare Center's Board of Trustees voted to pay off the remaining amount on their outstanding loan for their new CT Scan machine.
The healthcare center's cash position as of October 31 of this year was just over $4.5million, along with an expected payment from Johnson County of $1million pending in December.
Hospital Administrator Sandy Ward recommended the board approve paying off the loan for the equipment to save money on the interest payments.
Ward explains further.
The original loan was for just over $575,000 and the interest rate on the loan is 3.75%. The loan payoff date was originally set for October 1 of 2013. The healthcare center has paid more than half of the loan back, and the projected payoff amount on the loan as of December 1, 2011 is $237, 701.
The savings in interest over the next two years' worth of payments will be significant, according to Ward. The board voted unanimously to pay the loan off early.