Hillsboro hospital is quasi-government operation
Staff reporter
On Sept. 24, Hillsboro physician Dr. Randal Claassen asked Marion County Commission to consider asking constituents to vote on the funding of a county hospital.
During Claassen's presentation, he said Hillsboro Community Medical Center was owned by the city and all decisions were made by Hillsboro City Council.
What are the differences between the two hospitals and what entities make their decisions?
St. Luke Hospital, Living Center, and Home Health Care is supported by a hospital district. The district includes the eastern part of the county but does not include Hillsboro, Lehigh, and Goessel.
The hospital district receives approximately $650,000 annually in tax funds. The board of directors is elected by constituents within the hospital district and makes all decisions regarding the facility.
All assets of Hillsboro Community Medical Center are owned by a Public Building Commission which is a creation of the City of Hillsboro.
According to Hillsboro Mayor Delores Dalke, the Hillsboro PBC was created about 10 years ago when HCMC needed to refinance its debt at a more reasonable interest rate.
"A contract was drawn to refinance the hospital," Dalke said, with five mils, approximately $75,000 per year, of city funds set aside for equipment and improvements. Therefore, the PBC owns the land, buildings, and equipment.
When HCMC wants to make a capital expenditure with city funds, hospital representatives have to seek approval from the PBC which is comprised of Hillsboro City Council members.
However, the board of directors, appointed by the PBC, makes all operating decisions.
As a PBC and a part of the city, the PBC meetings are public, typically held with regular council meetings.
On a monthly basis, PBC members review financial information from HCMC.
"The PBC has to know that there is a sufficient stream of income to cover bond payments," Dalke said.
Since Hillsboro leaders formed the PBC, the special entity has been utilized for other developments — Hillsboro Family Aquatic Center and, most recently, Hillsboro Dental Care.
On the business side, Salem Hospital, Inc. is a private, not-for-profit organization and oversees day-to-day operations of the entity.
As a 501(c)3, HCMC has to reinvest a certain portion of its profits into the facility.
"We're always looking for ways to better serve the health care needs of the community," Mike Ryan, chief executive officer, said.
Future plans include renovations and improvements to the long term care unit that include a new entrance, a level parking lot, and new porch.
More immediate plans include some equipment upgrades but no major expansions or new facilities are in the works, Ryan said.
"Actually Dr. Claassen and the hospital are not necessarily on opposite sides," Ryan said. "We both are firmly focused on providing the best possible health care to Marion County."
The board of directors of Marion County Hospital District #1 met Sept. 25 and discussed the proposition made by Claassen.
For board member Martin Tice, Marion and Hillsboro have tried to discuss options but were not successful.
During previous discussions with Hillsboro, Hillsboro was not willing to divulge its financial information, Tice said.
"Our financials are laid out on the table," Tice said, because St. Luke Hospital, Living Center, and Home Health Care are partially funded, about seven percent or $650,000 per year, by a county hospital district. Hillsboro Community Medical Center also receives tax support from the City of Hillsboro but their meetings are closed to the public as are their financial records.
The board made a commitment a few months ago to a strategic plan. A task force was charged with the task of planning for the future which could include expansion or a new facility.
Marion County Commission is to send a letter of concern to the hospital boards, asking for input about consolidation or a county-owned hospital.
"I think we should continue what we have planned," Tice said. "Otherwise, we'll be waiting for something that may never happen."
Marion County Commission met Friday and signed letters to the two hospital boards, and the Hillsboro City Council and Marion City Council, asking for input and whether the entities were willing to discuss future plans.
