Thursday, May 2, 2024

First Hospital Board District meeting held discussing potential hospital district tax

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On Jan. 12, the Hood County Hospital District Board (HCHD) held a three-hour meeting where the possibility of a hospital district tax was presented to Hood County residents. These community members were able to learn more about the potential tax as well as share their input.

Hood County residents have not paid a hospital district tax since 1996. At that time the tax rate was 15 cents per $100 of valuation according to the Hood County Appraisal District. Residents have not had to pay this tax due to a lease agreement negotiated with Hospital Corporations of America in 1996. The agreement called for HCA to pay $15 million to the HCHD to lease the hospital from 1996-2026 with an option to renew the lease for an additional 10 years for $1,000. Community Health Systems, Inc. is now the lease agreement owner.

“By reducing the tax back then, it put us in a bad situation now,” Hood County Judge Ron Massingill said during the meeting.

The HCHD is responsible for paying for indigent care as well as jail inmate care as required by Texas law. Indigent Care is a program that helps low-income Texans who don’t qualify for other state or federal health care programs get free access to health care services. Some services include immunizations, medical screening services, annual physicals, inpatient and outpatient hospital visits, laboratory and radiology, and more. According to HCHD President Christy Massey, the program costs roughly $1 million a year. Massey added the population of Granbury is growing, meaning indigent care and jail inmate care numbers will rise.

“The board has no choice but to introduce a tax. State law requires these things to be paid for and that takes money. You’ve got to get that money somewhere, and the only place for us to get it, unfortunately, is taxing Hood County,” Massey said during the meeting. “I am for taxing the least amount of money that we can get by with.”

Massey told meeting attendees she has spoken with the Hood County Appraisal District and learned  the least impactful options are to tax a penny, a penny-and-a-half or two pennies. Though the tax could end up being higher if one is passed. One penny would result in residents paying $10 dollars per $100,000, a penny-and-a-half would result in $15 dollars per $100,000 and two pennies would equal $20 dollars per $100,000. A one-cent tax would bring $1 million into the hospital district while a two-cent tax would bring in $2 million.

Texas EMS Director Ricky Reeves spoke during the meeting, informing the board his agency is running extremely low on funds and would appreciate the board providing some funding for them.

“Most EMS is funded by taxing either through government, hospital districts or cities,” Reeves said.

Reeves noted it costs $4 million a year for his agency to run with four ambulances, but last year, they were only able to operate three due to low funds.

“We cannot continue to operate without a subsidiary from somewhere. The community has become accustomed to us being here,” Reeves said during the meeting. “With the growth that is predicted here, without funding we are not going to be able to meet that need.”

He also noted Texas EMS has had a hard time keeping personnel due to its low pay structure — which is due to lack of funds.

Parker County EMS Director Jim Backus was present in support of Reeves and told the board Reeves is doing a great job with the funds available. He warned if Texas EMS cannot get additional funding, the Hood County community is in trouble.

“I hate taxes, that’s the worst thing in the world, but we have to do something to help out EMS,” Backus said during the meeting. “They are making so many calls and I know they are struggling. We really need to look at that and help them out. Taxes are bad but I think it will really help the community and make it a safer place.”

Many community members spoke out on this potential tax as many don’t want to add to their taxes nor do they want Texas EMS to struggle.

“You guys (the board) are in strategic positions. You really have to sit down and think about how we can provide this service but also maintain taxes,” Hood County resident Mark Lowery said. “You guys have got to work together. If you nickel-and-dime us every time we turn around and we get a new tax at the voter’s booth, you’re going to wear us all out, and that’s not good for us.”

The board talked about potentially creating a group of community members to come up with ideas for how to deal with this important issue.

The conversation will continue for several months as the board figures out the best course of action for Hood County residents. The next HCHD meeting will take place Feb. 24 at the Hood County Courthouse.