Consider the Liberty County Hospital District No. 1

LIBERTY, March 6, 2010 – In order to reopen the Liberty Dayton Regional Hospital in October of 2009 the Hospital District, through a majority of its Board Members, conducted a complex series of legal and financial negotiations forming two corporations. One was a non-profit and the other was a corporation set up to operate the hospital. The Hospital District funded the non-profit Corporation to the tune of $1,000,001 dollars. The non-profit then funded the Hospital operating corporation by giving it $1,000,000 to sustain the Hospital and operate it in the short term.

All of this was predicated on the fact that a permanent arrangement and agreement would be reached with a third party investor who would secure ownership of the hospital, pay off the IRS lien of about $1,000,000 owed by the Hospital as well as pay off the delinquent property taxes and the past due utility bills owed by the Hospital to the City of Liberty.

As part of the permanent agreement, the Hospital District would pay lease payments to the third party investor to lease the hospital for several years.

Although it has been months since the Hospital reopened, the permanent agreement between the Hospital District and the third party investor has not been finalized as of today.

i-dineout.com has learned that delinquent property taxes owed by the hospital amount to about $570,000 dollars as of today and there is no evidence that the IRS Lien or the past due Utility Bill owed the City of Liberty has been paid.

The hospital currently operates at a loss. Much of the ability of the hospital to provide more than just basic emergency services have been compromised by a lack of equipment and needed facility upgrades.

There are other investors willing to invest in the hospital providing additional equipment and upgrades to facilities so that the hospital could provide additional in-patient and out-patient services in the hopes of making it profitable some time in the future. However, those investors cannot invest until a final agreement is reached and all the past due debts of the hospital are cleared up and clear ownership of the hospital is established.

The Hospital District tax levy amounts to about 2 million dollars per year. Out of that the District must pay for its significant overhead as well as fund indigent health care that consumes a huge amount of the Hospital District’s tax income. What is left over can be used to fund the hospital, but for how long?

It’s been months and the hospital’s debts have yet to be paid and no final agreement has been reached. How long can the Hospital District fund the hospital that is loosing money before a final agreement is reached and other investors make the necessary investment in the Hospital to hopefully return it to profitability?

Does the Hospital District, given its commitments, have the money to operate the hospital at a loss for an extended period of time?

Elections for the Hospital District are coming up soon and we should all consider who is best able to lead the Hospital District and us into the future.

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