Rockdale Hospital District board members believe they are just a couple of steps away from getting CHI-St. Joseph’s of Bryan to re-open three clinic suites at the former Richards Memorial Hospital.
St. Joseph’s is a well-known, well-established and highly-respected health care provider.
But Rockdale residents may have some tough choices to make. A package to close the deal with St. Joseph’s may include taxes.
On Monday, Milam County Commissioners Court unanimously agreed to have the county collect taxes for the district if it comes to that.
Dick Burns, hospital district board chair said the RHD has adopted a resolution to move forward with a new provider through CHI-St. Joseph’s. “The process has been complicated and demanding but we believe we are at the turning point for all this to happen soon,” he said.
TAXES—Although it hasn’t been determined yet, taxes may again be part of the equation.
From 2000 to 2007 the hospital collected a property tax. From 1994 to 2010 the district collected a one-half cent sales tax.
The property tax went down to zero. In a 2010 election city voters—the hospital district boundaries are the same as the City of Rockdaleshifted the sales tax to the Rockdale Municipal Development District.
“When we were receiving revenue from the half-cent sales tax we were able to take the property tax down to zero,” Burns said. “Over that period the MDD has received close to $4-million from the tax revenue.”
“The district would seek out potential creative ways to get what will be needed and keep taxation as low as possible,” Burns said. “The sales tax revenue is one way. The city, county, and MDD all receive sales tax revenue so you can see a little creative math could work. So we’ll just have to see what the people want.”
TALKS—Rockdale’s medical facilities—hospital and two clinics—closed in December when Little River Health Care went bankrupt.
“The district will seek out potential creative ways to get what will be needed and keep taxation as low as possible...we will just have to see what the people want.”
—Dick Burns, Rockdale Hospital District board chair
One clinic returned in February at the 602 North Main address which has been a clinic site for decades.
The hospital board has been actively working on an agreement with CHI-St., Joseph’s to open a clinic on the hospital site, not re-open the hospital itself.
But a major sticking point has been the complex bankruptcy process. The bankruptcy court has appointed a trustee to oversee the process and that trustee has the last word on usage of the buildings on that campus.
Burns, told The Reporter that the board has submitted a proposal to the trustee “on getting our facilities back.”
“I was hoping by now I would have something back on the proposal,” Burns said Monday. “It’s been three weeks now.”
Burns remains optimistic saying he believes “it all falls into place” if the board can get a positive response.
TAXES?—County Judge Steve Young emphasized no decision on collecting taxes has been made. He noted that Monday’s decision was to authorize the county to collect such taxes, as it does with other taxing entities in the county.
The hospital district, whose boundaries are those of the City of Rockdale was created in 1994 with a one-cent property tax cap.
At the time, during one of Richards Memorial Hospital’s periodic financial crises, it was not envisioned a property tax would be collected.
But four years later, as another crisis materialized, district voters increased the tax cap to 50 cents.
Later that year the hospital district instituted a 48-cent rate promising to lower the rate as financial conditions improved.
That’s exactly what happened and by 2007 the rate was lowered to zero.
INDIGENT CARE—“A key element to heath care, of which much of the general public might not be aware, is the provision of indigent and uncompensated care,” Burns said.
“This has been a state-mandated requirement since ever since the district’s formation in 1994,” he said.
He noted the initial property and sales tax revenues were used “to cover such mandates and expenses.”
“As a new era of health care returns, the hospital district board must make plans to cover the mandated indigent and uncompensated care, as there is currently no revenue to support this mandate,” he said.
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