MASSENA The Massena Memorial Hospital board of directors has approved a $1.5 million loan agreement for the purchase of Seaway Orthopedics.
Hospital spokeswoman Tina R. Corcoran said the total purchase price, which also includes the buildings equipment, is $2.95 million.
Hospital Trustee Dr. Bedros Bakirtzian, who owns the building and operates his practice there, abstained.
And while the hospital will own the building, Ms. Corcoran said, Dr. Bakirtzian will remain a private practice doctor and will not be employed by the hospital.
Board Chairman Darrel P. Paquin said after spending $4 million from cash reserves for the construction of a new medical office building, the thinking was that spending an additional $3 million from the reserves might be too much.
Hospital Chief Financial Officer Sean M. Curtin said he was comfortable with the deal.
Were taking advantage of low interest rates, he said, adding the loan has a five-year repayment period with an interest rate of about 4 percent.
Mr. Paquin said monthly debt service charges will be $27,625, with interest payments over the life of the loan totaling about $157,000.
In addition to Seaway Orthopedics, the hospital is acquiring the buildings physical therapy and Open MRI practices and equipment.
Ms. Corcoran said the purchase will allow the hospital to expand its physical therapy offering to include aquatic therapy and EMG testing, which she said is nerve-conduction testing.
The purchase of Open MRI will also allow the hospital use of the open MRI machine.
For people who are extremely claustrophobic, this will allow us to offer them that as an option, she said.
Ms. Corcoran said St. Lawrence Internists, which is also housed in the building, will remain a private practice separate from the hospital and will not be affected by the purchase.
She said the board thus far has approved only the loan agreement.
The final purchase, she said, is pending the state Department of Healths approval of a certificate of need.