Press Release

1-18-10

Three percent of public hospitals nationwide are failing each year.  All strategic and business plans for these hospitals are subject to public records laws.  Competition from private surgery clinics have been able to siphon off the procedures and services that provide the highest return and leave those that bring in little revenue to hospitals that are mandated to perform them.  To make matters worse, a recent Supreme Court decision has made it virtually impossible to finance hospital improvements and equipment in a competitive manner, which is critical in such a dynamic market.

 The Idaho Health Facilities Authority’s (IHFA) has proposed a solution to this problem. They have recommended that all county hospitals in the state of Idaho convert from a county hospital structure to a 501 (c) 3 hospital structure.  A very specific process for doing so is regulated by an Idaho state law, which was created more than thirteen years ago.  The purpose of this law is to ensure that the healthcare needs of the county citizens continue to be met exactly as they are under the county structure.  As a demonstration of their strong support, IHFA has agreed to pay for certain legal costs associated with these conversions.

 Following the advice and recommendation of the Idaho Health Facilities Authority, the Gem County Commissioners, along with the management of Walter Knox Memorial Hospital, have been evaluating the conversion to a 501 ( c ) 3 nonprofit hospital.   Under this structure, the nonprofit hospital would have a governing body composed of individuals from the existing WKMH hospital board.  The county would continue to own the hospital facility and equipment, which would be leased to the new nonprofit organization, generating revenue for the county to support other community needs. 

 As a county hospital, the option exists to raise taxes to support the hospital.  While WKMH does not currently use tax dollars raised by the county to fund the hospital, this new structure removes the taxing option, which in turn reduces the risk to the citizens of Gem County of funding any hospital shortfall.

 “We have a long way to go before any decision is made”, said Commissioner Lan Smith.   

A public education program, explaining the advantages and disadvantages of conversion, has been developed and will be presented throughout the community to any group or individual interested.  The first presentation scheduled currently is the February meeting of the Gem Economic Development Association (GEDA). “This is an issue that needs a lot of public input and discussion.  There will be public hearings scheduled for this purpose if we decide to move forward after we get more information, “ said Smith. 

The Hospital Board made the move to establish the private corporation by filing articles of incorporation in November, in order to submit the application for non-profit status to the Internal Revenue Service, which could take as long as nine months.  When the County Commissioners became aware of the filings, they immediately directed the Hospital Board Chairman to not move any further until information is provided to the public so that they can be included in the discussion. 

 The decision has not been made by the county to proceed with this conversion. Public input will be critical to moving forward. Please contact Sue Vahlberg, WKMH Community Relations, WKMH Board of Directors members, or the Gem County Board of Commissioners to provide feedback.

 More information is available on the WKMH website at www.wkmh.org  or by calling Sue Vahlberg, Community Relations at WKMH at 365-3561 x3370. Send comments to comment@wkmh.org