NEW CASTLE —
Jameson Health System has appealed to New Castle city officials to reduce the inspection fees for its emergency room project.
Doug Danko, Jameson’s president and chief executive officer, presented the health system’s case to city council at its work session Tuesday night.
The total construction cost for the expanded emergency room and revamped surgical department at the hospital on Wilmington Avenue is approximately $17 million.
The city assesses 1 percent of the construction cost for a building permit plus has an inspection fee. Inspections of building constructions are conducted for the city by Pennsylvania Construction Inspection of Edinburg.
The fees for the Jameson project total $248,000.
Danko explained how operating revenues for Jameson have declined from $110 million in 2009 to $107 million last year while charity care provided by the hospital has gone up from $14.8 million in 2008 to $20.8 million last year.
He said Jameson does not believe the fees to be “fair and equitable.” The contractor, he said, had built in a lower estimate for the fees.
Nonetheless, Danko added, “We agreed to send in the $248,000 with a letter of protest to try and reconcile” to make the fees more rational.
He asked council to consider including the inspection fee in the $175,000 for the permit and return approximately $75,000 to Jameson. Danko said Jameson believes the 1 percent should include the inspection fee.
Reimbursing Jameson, he said, would help it avoid cutting something out of the project, which is expected to be completed in about a year.
If council agrees to pay the $75,000 back, the city would then have to pay PCI the $75,000 for the inspection, leaving the city with a net of approximately $95,000, according to business administrator Stephanie Dean.
Council plans to vote on the matter at its regular meeting Thursday night.
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Jameson asks city to reduce fees
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