New sales tax for hospital discussed
WEDOWEE–Representatives of Randolph County Healthcare Authority and Wedowee Hospital addressed Randolph County Commission at its workshop meeting regarding a possible vote on a 1-percent sales tax to build and support a new hospital.
Vice chairman of RCHCA Bill Caypless said the Wedowee Hospital building is obsolete and operates under a grandfather clause. A new facility would bring in more patients with better insurance to offset the high indigent rates. It would also attract doctors.
Tanner Health Systems is having a feasibility study in regards to a new hospital done now to see if that’s a realistic goal.
“The discord between Roanoke and Wedowee has kept us from it in the past,” said Caypless. “If the study shows it’s viable, we need to pick up the ball and run with it. It’s not Wedowee, it’s not Roanoke, it’s Randolph County. If Wedowee Hospital closes, you’re not going to have another.”
A 1-percent sales tax would make enough to buy a hospital and offset the indigent population. Tanner has invested more than $1 million in Randolph County already, said Caypless.
RCHCA member Tim Coe said they need the Randolph County Commission to bring the matter to the state legislative delegation so they can get it on a ballot. They do not convene until February. He said, “There’s no dissension in the need–just how to pay for it. This seems to be the fairest way.”
Commissioner Terry Lovvorn asked about the tax the county already has. Caypless said with it funding the retirees’ benefits, that will take $850,000 of it next year. Some retirees will pass away, but others have not yet begun drawing.
Wedowee Hospital administrator Mike Alexander said without a tax, the hospital will not survive.
He said it’s not the management; they’ve cut $667,000 this year. They just need more insured patients, and the mix is not there. Between 8,000 and 9,000 people visit the ER annually. It must be offset through tax support. Even without the issue of the retirees, there would not be enough. Four rural Georgia hospitals closed last year.
Alexander said more savings might be seen with a full relationship with Tanner in purchasing supplies, etc. Tanner has provided a free administration for over a year to see how it works.
They are proposing 15 beds, the smallest hospital that can be built. It may be added onto. At 50,000 square feet, the cost is estimated at $24 million. In partnership with Tanner, which could reduce some costs, maybe $18-$20 million.
Commission Chairman Richard Fetner also noted that proceeds from a sales tax would be collected monthly.
Commissioner Mike Hester said, “I was born there. It’s touched a lot of my family. I don’t want to see it go.”
Commissioner Larry Roberts recently went to a state meeting. He said, “There’s a chance Alabama will lose 10 hospitals in the next year, and ours might be one of them.”
The commissioners tabled this until Tanner gets its study back.
Fetner said, “We support them 100 percent. Maybe we can get this on the road.”
