Bradley to earn more on hospital fund

CLEVELAND, Tenn. -- A change in the way Bradley County Hospital funds are invested could mean a greater return for the county.

David Bowling, director of local finance at the Tennessee Comptroller's Office, has approved a requested change in investments for the hospital fund at the request of Trustee Mike Smith and the County Commission.

The fund, now at about $16 million, is half of the money from the sale of the county-owned hospital in 2005.

In December, Mr. Smith suggested some technical wording changes and using his office's investment advisory committee to oversee the hospital money along with other county money. The hospital money will be kept separate, he said, and will be invested through local banks, not in the stock market.

Last week, Mr. Smith said the state approval means a minimum of 2 percent growth in returns can be expected because the investment period has increased from two years to 10 years.

"Over a 10-year period, this should amount to over $3 million in additional interest revenue generated by the hospital fund," Mr. Smith said.

The trustee's office also received approval to lengthen investment of all county funds from two years to five years. If that change had been in place in the last two years, Mr. Smith said, the county would have realized about $1 million in additional interest income.

Mr. Smith said the effort was undertaken by his office as well as local state legislators, state Reps. Eric Watson and Kevin Brooks, both R-Cleveland, and state Sen. Dewayne Bunch, R-Cleveland.

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