Thursday, April 18, 2024
The county has had a contract with Lake Granbury Medical Center's parent company since 1996.
A lawsuit filed by the Hood County Hospital District against the local hospital and its parent company was decided late last week with both sides claiming a measure of victory.
As part of his ruling, 355th District Judge Bryan Bufkin awarded money to the HCHD. However, at just under $125,000, the amount was far less than some HCHD members had hoped, and it may not be enough to stave off a hospital district tax.
The lawsuit involved the contractual agreement that has been in place since 1996 for indigent health care services. At issue was whether the county was double paying for care given to inmates at the Hood County Jail, many of whom qualify for court-appointed attorneys.
In the view of County Judge Ron Massingill, the fact that courts consider them indigent should mean that Lake Granbury Medical Center should also consider them indigent.
Massingill raised the issue shortly after taking office in 2019. He said that if the HCHD was able to recoup any money rightfully owed the county, taxpayers might be spared from having to pay a hospital district tax.
Massingill recently told the Hood County News that a hospital district tax will add 5-7 cents per $100 valuation to property taxes.
The threat of such a tax is looming larger for two reasons: the number of people who qualify for indigent health care is increasing and the pool of funds to pay those costs is shrinking.
Massingill and all four county commissioners serve on the HCHD board along with several other people from the medical field and the community.
At the time the matter was being discussed at HCHD meetings, hospital representatives indicated that indigency qualifiers for the hospital were not necessarily the same as the qualifiers used by courts for attorney appointments.
In January 2020, the HCHD filed the lawsuit against Community Health Systems, Inc., Granbury Hospital Corporation d/b/a Lake Granbury Medical Center, and Community Health Systems Professional Services Corporation d/b/a Lakeside Physicians.
Massingill said at the time that taking legal action to settle the question was not an indictment of the hospital.
At that time, the county had just $5.1 million remaining of its nest egg for indigent health care, but was spending about $48,000 per month, or $576,000 per year, on medical care for inmates. Added to the $218,000 the county already paid to LGMC annually, that brought the cost of indigent health care to almost $800,000.
In June 2019, the HCHD board voted to spend $5,000 to hire Elizabeth Fraley, an associate professor of law at Baylor University Law School, to provide an expert opinion on the contract between the HCHD and the hospital. HCHD member David Kuban, a doctor of osteopathic medicine, voted against the move.
Massingill, Precinct 4 Commissioner Dave Eagle, and now-deceased HCHD board member J.C. Campbell expressed that a review of the contract was an important step before moving to impose a new tax.
“We can report to our constituents that we have done our due diligence,” Eagle said.
THE RULING
The county owns the hospital property, but Community Health Systems, Inc. staffs it and runs it.
Massingill said that when the contract was drafted, both sides agreed to have a judge rather than a jury decide any disputes.
Both parties issued statements to the HCN after Bufkin’s ruling.
Fraley, on behalf of the HCHD board, wrote: “On Friday, April 29, Judge (Bryan) Bufkin ruled that Lake Granbury Medical Center had breached its obligation to provide free care to indigent citizens of Hood County and that it owed money damages and attorney’s fees because of that breach…
“Judge Bufkin also ruled that going forward, the hospital would have to pay for that indigent care and be the one to determine who qualified for the care under the Lease. The hospital had claimed in the trial that the District was responsible for making that determination.”
Tom Jensen, a spokesman for the hospital, provided this statement from the corporate office: “We are pleased that the contract dispute trial has concluded and appreciate the court’s time and consideration in this matter. Lake Granbury Medical Center is focused on caring for every individual who comes to us for care including the most vulnerable of our neighbors. We've enjoyed our long-tenured relationship with the hospital district and will continue to provide quality healthcare services for all residents of Hood County.”
