By Andy Marso
KHI News Service
TOPEKA — Voters in McPherson County will decide Tuesday whether to raise their sales tax by a half-cent, with proceeds going to three hospitals in the county.
If the ballot measure passes, 75 percent of the tax revenue would go to McPherson Hospital, and the remaining 25 percent would be split evenly between Lindsborg Hospital and Moundridge’s Mercy Hospital. The increase would take effect in April and expire after 10 years. The money generated could be used for capital improvements or operating budgets.
McPherson Hospital would get about $1.65 million per year if the measure passes. The facility has one wing built in 1921 and another built in 1971. It is in the midst of a multi-phase renovation project.
“One of those phases is being funded by philanthropic dollars, so we’re essentially running a capital campaign concurrently with this tax initiative,” said Cyril Russell, marketing director for McPherson Hospital.
The final phase of the renovation project includes building a new wing that would allow the hospital to raze the portion built in 1921.
“If it doesn’t pass, we would have to take a look at several options,” Russell said. Those could include expanding the capital campaign, scaling back or adjusting the timing of renovation plans, and considering other funding options.
Lindsborg Hospital and Mercy Hospital would stand to gain about $250,000 to $275,000 each per year if the ballot measure passes.
An administrator from Mercy Hospital told the McPherson Sentinel the money could “help with our survival.”
Larry Van Der Wege, hospital administrator at Lindsborg Hospital, said the situation was not that dire at his facility.
Van Der Wege said Lindsborg Hospital already benefits from a city sales tax and has made difficult financial decisions to position itself to survive even if the county ballot measure does not pass.
But he also said health care reform has created some uncertainty about future reimbursements, and his hospital already does a substantial amount of uncompensated care.
“There are facilities with more,” Van Der Wege said. “This past fiscal year we had just under a half-million dollars of charity care or bad debt, which is always a challenge. But it is part of our mission to provide that care to people who don’t have insurance or struggle to afford care, because health care is expensive.”
Van Der Wege said his facility’s annual operating budget is about $13 million, and some capital work might be on the schedule before the tax increase ends.
“We’re fortunate to have a relatively newer facility,” Van Der Wege said. “It was built in ’91, but by the time this sunsets it will be 35 years old, so there will be improvements needed.”
Andy Marso is a reporter for Heartland Health Monitor, a news collaboration focusing on health issues and their impact in Missouri and Kansas.