New London Hospital to Open $9M Clinic in Newport

A rendering of the Newport Health Center

Almost a year after the project broke ground, a new $9 million, two-story clinic is nearing completion in Newport later this month by New London Hospital.

New London Hospital opened the Newport Health Center after Newport Hospital shuttered its doors in 1991. The clinic leased space in a former food market, and it didn’t take long for it to become cramped. At one point, the clinic had to close for three weeks after a massive leak in the roof.

The hospital wanted to expand services in Newport, which, with a population of 6,500, is the largest of the 15 communities it serves. Newport residents generate a third of the hospital’s revenue annually, and the clinic receives higher Medicaid reimbursement rates than other areas as Sullivan County is designated a medically under-served rural area by the federal government.

“The new space is designed for the effective delivery of modern health care,” says Bruce King, CEO of New London Hospital, referring to the 28,600-square-foot clinic.

Designed by Dignard Architectural in Bedford and constructed by Fulcrum Associates in Amherst, it will include expanded space for behavioral health, laboratory, radiology and women’s health, and a new onsite pharmacy. New services will include diagnostic ultrasound, orthopaedic casting, oral health and bringing in specialists from Dartmouth-Hitchcock Medical Center.

The clinic will fill 15 new positions, and New London Hospital is hiring a full-time psychologist who will split her time between the hospital and the clinic.

That's not to say the project hasn't hit a few speed bumps. The $9 million price tag is paid largely through debt financing and a $2.2 million capital campaign. The hospital has commitments of nearly $1.2 million with the rest expected from continued fundraising and an unrestricted gift it received. The hospital is also facing the prospect of paying taxes on the new facility despite its nonprofit status. The Town of Newport, following other communities, says a portion of the project should be taxable as the new pharmacy is a commercial enterprise, says Jeffrey F. Kessler, chairman of the Newport Board of Selectmen. The hospital is challenging that effort.

The clinic is the latest stage in an effort to better position the hospital to serve its communities. King was appointed CEO of New London Hospital in 2003 after the board fired the management team in 2002 due to five consecutive years of financial decline. The board then broke its affiliation with Concord Hospital and approached Dartmouth-Hitchcock to establish a management contract, King says, which is when he was appointed.