Explanation
Background: This legislation authorizes the modification of a promissory note and loan agreement, with Maryhaven, Inc.
Ordinance 3440-2025 authorized a promissory note and loan agreement with Maryhaven, Inc. for operations support. Maryhaven began implementation of a new Electronic Health Records (EHR) to replace existing ineffective software. This new software adoption also included training and system integration. While a necessary and valuable investment in IT infrastructure, the migration to a new billing system coupled with training and system integration, resulted in a slowdown in billing and revenue recognition.
This software integration is now complete and the new EHR system has been fully implemented. However, due to a longer than anticipated implementation period, Maryhaven has experienced a delay in revenue generation and related cash flow. As such, this ordinance seeks authority to modify the existing promissory note to provide for an amended repayment schedule. The original repayment schedule provided for a repayment period of March 2026 through December 2026. This ordinance authorizes an amended repayment schedule which will consist of two phases. Phase one will provide for a $10,000 monthly loan payment for the period November 2026 through July 2027. Phase two will commence in August 2027 at a yet to be determined monthly loan payment amount.
Maryhaven has developed a Financial Sustainability Plan, which includes loan repayment to the City of Columbus. However, the initial phase under this plan concludes on June 30, 2027 which is the end of Maryhaven's current fiscal year. This plan will be updated for the 2027-28 fiscal year and the City and Maryhaven will discuss modifying the loan repayment at that time. It should be noted that Maryhaven remains committed to loan repayment and will continue to partner with the City and provide timely financial briefings.
Maryhaven is a nonprofit addiction treatment provider that operates four campus...
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